Non-Profits Perplexed by Sweeping New Retirement Plan Regulations

New 403(b) tool from The Principal simplifies the complex
DES MOINES, Iowa--(Business Wire)--
Non-profit plan sponsors face big decisions to meet complex new
rules for 403(b) retirement plans. And they want help.

In fact, 77 percent of 403(b) sponsors want help complying with
the regulations, according to a new study from Spectrem Group(1).
Until now, however, little direction has been available.

Fortunately, an easy-to-use new tool from the Principal Financial
Group(R) simplifies the complex. The tool walks non-profits and their
financial professionals through the decision-making process. Using
model scenarios, it outlines the actions needed for three 403(b) plan
structures.

The new rules require plan sponsors to make several critical
changes by January 1, 2009.

Complex Regulations

"Sponsors now have to think about their 403(b) plans in a whole
new light," said Aaron Friedman, national non-profit practice leader,
The Principal(R). "The new rules require that 403(b) plans be run more
like 401(k) plans. That's a major change in and of itself."

"It's even more complicated because not all 403(b) plans are
structured alike. Plan sponsors must take different actions depending
on the structure of their plan," said Friedman. "Throw in the new
rules for Form 5500s and guidance on grandfathering from the Internal
Revenue Service and the complexity has increased substantially."

How the tool from The Principal can help

The new interactive tool from The Principal helps plan sponsors
and financial professionals:

-- Understand the new regulations with plain-language
explanations

-- Identify the structure of their 403(b) plan by reviewing
criteria for three model plans

-- Learn what steps they need to take for their model

-- Fulfill their compliance obligations and meet IRS deadlines

The tool is available at www.principal.com/403btool

Other 403(b) resources from The Principal

The new 403(b) tool is part of a comprehensive education program
from The Principal on the new regulations.

-- An easy-to-use guide gives a before-and-after snapshot of key
provisions of the 403(b) regulations.

-- Two white papers are available--one by renowned 403(b) expert
David Powell of the Groom Law Group and the other by Aaron
Friedman.

About the Principal Financial Group

The Principal Financial Group(R) (The Principal (R))(2) is a
leader in offering businesses, individuals and institutional clients a
wide range of financial products and services, including retirement
and investment services, life and health insurance, and banking
through its diverse family of financial services companies. A member
of the Fortune 500, the Principal Financial Group has $311.1 billion
in assets under management(3) and serves some 18.6 million customers
worldwide from offices in Asia, Australia, Europe, Latin America and
the United States. Principal Financial Group, Inc. is traded on the
New York Stock Exchange under the ticker symbol PFG. For more
information, visit www.principal.com.

(1) Not-For-Profit Sector Defined Contribution Plans, Spectrem
Group 2008

(2) "The Principal Financial Group" and "The Principal" are
registered service marks of Principal Financial Services, Inc., a
member of the Principal Financial Group.

(3) As of December 31, 2007

#319404201

Principal Financial Group
Terri Hale, 515-283-8858
hale.terri@principal.com
or
Susan Houser, 515-248-2268
houser.susan@principal.com

Copyright Business Wire 2008