Adam Pozek Testifies on DC Benefit Statement Issues before DOL on Behalf of Sentinel Benefits Group, ASPPA & CIKR.

ARLINGTON, Va. -- Representing powerful industry groups, Adam C. Pozek, QKA, QPFC, AIF, RHU, REBC, testified today before the Department of Labor's (DOL) ERISA Advisory Council Working Group on Automated Participant Benefit Statements in Defined Contribution Plans. Pozek represented Sentinel Benefits Group, the American Society of Pension Professionals & Actuaries (ASPPA) and the Council of Independent 401(k) Recordkeepers (CIKR).

Pozek's testimony focused on issues relating to the new benefit statement requirements of defined contribution plans under section 508(a) of the Pension Protection Act of 2006 (PPA). According to Pozek, "Sentinel Benefits Group, ASPPA and CIKR represent a significant portion of defined contribution plans and we are here today to make specific recommendations that will strengthen and simplify the benefits statements required by the PPA SS508."

Pozek stressed the importance of 401(k) participants receiving cost-effective, timely and understandable information in their benefit statements. He provided recommendations to the DOL on issues relating to content, vesting, timing and the "most recently available information" in order to help 401(k) plan administrators comply with the new PPA benefit statement requirements. His recommendations to DOL included the following:

* Permit the use of multiple source documents for the furnishing of benefit statements;

* Only require defined benefit plans to provide disclosure on benefits statements regarding the use of disparity in determining benefit;

* Provide that PPA's vesting disclosure requirement may be satisfied by referencing the SPD or providing a description of the plan's vesting schedule;

* Tie the due date for trustee-directed plans to the plan's Summary Annual Report; and

* Provide flexibility to provide a "good faith determination" of the most reasonable available information.

Sentinel Benefits Group is a leading provider of employee benefit consulting, administration and brokerage services including defined benefit and defined contribution retirement plans, executive compensation plans, flexible spending accounts, COBRA administration, insurance and investment advisory services. Sentinel Benefits was recently featured as the fastest growing firm by percentage increase in recordkeeping assets among 114 providers in the ninth annual Defined Contribution PLANSPONSOR 2007 Recordkeeping Survey. Sentinel Benefits serves more than 2,500 businesses and corporations throughout the U.S. For more information, visit www.sentinelbenefits.com.

ASPPA is a national organization of more than 6,000 retirement plan professionals who provide consulting and administrative services for qualified retirement plans covering millions of American workers. ASPPA members are retirement professionals of all disciplines, including consultants, administrators, actuaries, accountants and attorneys. Our large and broad-based membership gives ASPPA unique insight into current practical applications of ERISA and qualified retirement plans, with a particular focus on the issues faced by small- to medium-sized employers. ASPPA's membership is diverse but united by a common dedication to the employer-sponsored retirement plan system.

CIKR is a national organization of 401(k) plan service providers. CIKR members are unique in that they are primarily in the business of providing retirement plan services as compared to financial services companies who primarily are in the business of selling investments. As a consequence, the independent members of CIKR offer plan sponsors and participants a wide variety of investment options from various financial services companies without an inherent conflict of interest. By focusing their businesses on efficient retirement plan operations and innovative plan sponsor and participant services, CIKR members are a significant and important segment of the retirement plan service provider marketplace. Collectively, the members of CIKR provide services to approximately 68,000 plans covering 2.8 million participants and holding in excess of $120 billion in assets.

Editors' Note: The full text of Mr. Pozek's testimony may be found at www.asppa.org.