Lincoln Financial Offers 403(b) Employer Webcast

Mon Jul 21, 2008 9:01am EDT

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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.palmieri@lfg.com

SOURCE  Lincoln Financial Group
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