ADVISORY/Principal Financial Group Strongly Opposes New Lifetime Savings Accounts Legislation; Retirement Plan Experts Available to Comment about Thomas-Johnson Proposal.News Editors/Business Editors/Assignment Desks ADVISORY...Interview Opportunity --(BUSINESS WIRE)
WHO: Daniel J. Houston, Senior Vice President, Retirement &
Investor Services, Principal Financial Group Chris Bowman,
Vice President, Retirement & Investor Services, Principal
Financial Group Stuart Brahs, Vice President, Federal
Government Relations, Principal Financial Group
WHAT: The Principal Financial Group(R), the nation's 401(k)
leader, strongly opposes legislation announced today by
Senator Craig Thomas (R-WY) and Representative Sam Johnson
(R-TX) which would create Lifetime Savings Accounts, (LSAs),
as proposed in the Administration's 2005 Budget.
The Principal(R) supports efforts to encourage long-term
retirement savings including concepts that would simplify
employer-sponsored savings plans, but warns that LSAs would
actually reduce individual retirement savings and undermine
401(k)s and other employer-sponsored plans. The Principal
urges caution in any changes to the current retirement savings
system.
"If we are to avert a pending retirement income crisis in this
country, we need to encourage American workers to save
long-term for financial security in retirement and LSAs don't
do that," said Daniel J. Houston , senior vice president,
Retirement and Investor Services, Principal Financial Group.
"By allowing individual savers to withdraw money for any
reason at any time with no penalty, LSAs encourage short term
savings. In addition, LSAs will hurt retirement savings in the
work place because they reduce the incentive for small
employers to establish retirement plans for their employees.
LSAs would in effect undermine the progress that has been made
in creating employer-sponsored retirement plans."
WHEN: Interviews can be arranged with experts from the Principal
Financial Group by telephone following receipt of this
advisory. Broadcast interviews are also available via
VideoLink.
CONTACT: To arrange an interview with Dan Houston, Chris Bowman or
Stuart Brahs, please contact Terri Shell, 515-283-8858,
shell.terri@principal.com or Susan Houser, 515-248-2268,
houser.susan@principal.com.
About the Principal Financial Group The Principal Financial Group(R) (The Principal(R))(1) 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 mortgage banking through its diverse family of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies. More employers choose the Principal Financial Group for their 401(k) plans than any other bank, mutual fund, or insurance company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (2). A member of the Fortune 500, the Principal Financial Group has $144.9 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. (3) and serves some 15 million customers worldwide from offices in Asia, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United States. Principal Financial Group, Inc. is
traded on the New York Stock Exchange New York Stock Exchange (NYSE)World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors PFG PFG Principal Financial Group PFG Performance Food Group (Richmond, VA) PFG Pinnacle Financial Group PFG Plasma Flood Gun PFG Planning for Growth PFG Pasty Faced Geek PFG Perfluoroguanidine . For more information, visit www.principal.com. (1) "The Principal Financial Group(R)" and "The Principal(R)" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. (2) CFO See Chief Financial Officer. Magazine, April/May 2003, based on total plans served in 2002 by insurance companies, banks and investment firms. (3) As of December 31, 2003 |
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