Lincoln Financial Offers 403(b) Employer Webcast
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What: 403(b) retirement plan solutions examined in live webcast by Lincoln Financial Group providing insight into the new regulations and the Lincoln 403(b)e SURE(SM) Advantage offering, a suite of services assisting employers in meeting these new requirements and simplifying plan administration. Presenters: Jim Racine, Assistant Vice President and Director of Customer Support Strategy and Projects for Lincoln Financial Group John Arant, Head of 403(b) Markets Growth for Lincoln Financial Group When: Monday, July 28, 2008 @ 4:00 p.m. Eastern Time Where: http://www.LFG.com/webcast Details: The new 403(b) regulations, the first in almost 40 years, will dramatically increase the role of employers in governing investments, transfers, documentation, administration and participant disclosures. Employers will need significant help from providers to comply with the complex requirements of the new rules. In the past, employers were not typically actively involved in overseeing 403(b) plans. Non-compliance could mean employers' plans lose their 403(b) status and/or individual 403(b) accounts could lose their tax advantaged status. The Lincoln 403(b)e SURE(SM) Advantage suite of services includes access to assistance, products and tools that will help employers prepare for the changes ahead. (Logo: http://www.newscom.com/cgi-bin/prnh/20050830/LFLOGO ) About the speakers: John Arant is the head of 403(b) Markets Growth for Lincoln Financial. Arant is responsible for leading Lincoln Financial's 403(b) Strategy Team including the new Lincoln 403(b)e SURE(SM) Advantage offering. Jim Racine is Assistant Vice President and Director of Customer Support Strategy and Projects, responsible for setting, coordinating and implementing the strategic direction of the defined contribution services offered by Lincoln Financial. He is a member of Lincoln's 403(b) Strategy Team and works closely with industry groups, intermediaries and clients. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Two separate companies issue Lincoln's insurance and annuity products: The Lincoln National Life Insurance Company of Fort Wayne, Indiana, and for those sold in New York, Lincoln Life & Annuity Company of Syracuse, New York. Securities distributed by Lincoln Financial Distributors, Inc., a broker dealer and wholesale distribution organization of Lincoln Financial Group. About Lincoln Financial Group Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in Philadelphia, the companies of Lincoln Financial Group had assets under management of $225 billion as of March 31, 2008. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit http://www.LincolnFinancial.com. Lincoln Financial Group Market Facts -- Ranked among industry leaders -- Ranked first in new 403(b) contributions and number of new participants, in a recent survey of 21 major companies(5) -- 5th total 403(b) assets(4) -- 10th employer sponsored plans(4) -- Flagship company established in 1905 -- Fortune 500 company(2), NYSE: LNC -- Lincoln Financial Group total assets under management of $225 billion(3) -- More than 40 years' experience with 403(b) plans -- Retirement plan assets over $36.1 billion(4) 403(b) Basics As a leader in the 403(b) market, Lincoln Financial Group is committed to serving as an educational resource on various topics for employers and employees. With the new 403(b) Regulations taking effect on January 1, 2009, we encourage organizations to think about the impact on their retirement plans and why it is critically important to comply. What are the new 403(b) regulations? Plan sponsors will need significant help from providers to comply with the complex requirements of the new regulations. The regulations, the first in almost 40 years, will dramatically increase the role of employers in governing investments, transfers, documentation, administration and participant disclosures. The new regulations will substantially change the way 403(b) arrangements are sold and serviced, and will likely encourage employers to consolidate their current arrangements which may cause the number of plan providers in the market to shrink dramatically. Officials from the Department of the Treasury have indicated that by requiring plan sponsors to manage and report on the status of their 403(b) accounts, they hope these plans will be better positioned to enable participants to save for retirement in the future. In the past, plan sponsors were not typically actively involved in overseeing 403(b) plans. Now, the new rules will make the role of plan sponsors in the administration of 403(b) plans very similar to 401(k) plans. How will these new regulations affect plan sponsors and employees? -- Organizations must play a larger role in governing and overseeing retirement plans for their employees. -- The new regulations will likely result in true partnerships between plan sponsors and vendors, leading to better management, control and consistency of plan features. -- With the anticipated vendor consolidation in the marketplace, plan sponsors can request more competitive products (e.g., price, flexibility and features) and receive more comprehensive administrative and regulatory support to help with plan compliance. -- Increased participant education opportunities and product level disclosures will likely encourage higher participation rates among employees. Here is a checklist for employers to consider: -- Start early to plan effectively and work to maximize end-results for plan participants -- Evaluate your current 403(b) plan provider relationships -- Consider partnering with established firms that offer resources and expertise to help you become compliant -- Work with providers and advisors to develop an action plan to comply with all aspects of the new regulations -- Prepare a detailed timeline to achieve compliance status by January 1, 2009 -- Educate your employees about new plan offerings and encourage increased participation According to 403(b) providers, the following implications will affect plan sponsors and participants the most: Requirement of a written plan document: 57% Elimination of 90-24 transfers: 57% Clarification of a distributable event: 29% Nondiscrimination rules: 14% Requirement of universal availability: 14% Source: National Tax Sheltered Accounts Association & Cerulli Associates 403(b) Vendor Survey, April, 2007. Vendors included insurance companies, mutual fund companies, and asset management firms. FAQ's What happens if an organization does not comply? Organizations could face a number of repercussions if they do not comply with aspects of the regulations. Most notably, plan sponsors' plans could lose their 403(b) status and/or individual 403(b) accounts could lose their tax advantaged status. This could lead to a significant taxable event for employees. Organizations also may face considerable penalties and/or litigation. Will Lincoln Financial assist organizations in becoming compliant? Lincoln Financial offers assistance and comprehensive services to help organizations comply with the new regulations by January 1, 2009. How significant is the potential impact of these regulations? In 2007, it was estimated that 403(b) plans accounted for $735 billion in assets, or 17% of the total defined contribution retirement plan market.(1) For more information on Lincoln 403(b)e SURE(SM) Advantage, a suite of services aimed at providing access to assistance, products and tools that will help plan sponsors prepare for the changes ahead, please visit: http://www.lfg.com/LincolnPageServer?LFGPage=/lfg/lfgclient/fprod/retplan/pss/ index.html (Due to the length of the URL, please copy and paste into browser.) 1) SPARK Staff Analysis, 2007 2) Fortune, April 3, 2007 3) As of March 31, 2008 4) As of September 30, 2007 5) LIMRA International, Not-for-Profit Market Survey, First Quarter 2008 Contact: Daniela Palmieri Lincoln Financial Group 484.583.2986 Daniela.firstname.lastname@example.org SOURCE Lincoln Financial Group
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