David Wray Urges Plan Sponsors to 'Deliver the Dream' at American Express Retirement Services 2002 Client Forum.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 15, 2002

President of the Profit Sharing/401(k) Council of

America Delivers Keynote Address

David Wray, president of the Profit Sharing/401(k) Council of America (PSCA), today called on sponsors of 401(k) and other defined contribution plans to continue working to "deliver the dream" of a secure retirement for their employees. Wray delivered his comments at American Express Retirement Services' national Client Forum where he addressed American Express' retirement plan and financial education and planning clients assembled in Minneapolis. Wray was keynote speaker at the three-day event running August 14-16 at the Minneapolis Radisson, which features more than 15 speakers, breakout sessions and an ongoing service fair.

"We are in the dream delivery business," said Wray as he told plan sponsors about the role they play in the future financial dreams of their employees. "Contrary to recent detractors and high-profile company stock losses, the 401(k) system is not broken." He noted that money saved and invested within 401(k)s and similar plans have increased 60 percent in the past six years, now second only to IRAs and far beyond defined benefit plans. Yet, recent events have made defined contribution plans more worrisome to employers.

Wray called plan sponsors to "fiduciary excellence," redefining the obligation in terms of legal, ethical and practical application. Using recent examples, he illustrated the new challenges plan sponsors face with their fiduciary responsibility in the areas of compliance and investments. Urging sponsors to meet the test head on, Wray provided an extensive list of strategies and ideas sponsors can explore to "be all the fiduciary they can be." These include:

-- Offering a professionally managed option

-- Automatic rebalancing

-- Offering fewer funds--are 14.5 choices too many?

-- Developing an Investment Policy Statement

-- Closely monitoring fund performance and removing poor choices

-- Prudently managing investment and plan service fees

-- Financial education

-- Providing investment advice

-- Supervising the service provider

-- Getting independent information sources

-- Maximizing the provisions of EGTRRA for the plan

Wray is a nationally recognized authority on defined-contribution plan issues who has testified before numerous Congressional committees as well as the Department of Labor, Treasury Department and Internal Revenue Service. He has held his PSCA post since 1987. He recently authored the book, Take Control with Your 401(k), a comprehensive guide for employees on more effectively using their employer-sponsored 401(k) plan for retirement saving and investing.

The Profit Sharing/401(k) Council of America (PSCA) is a nonprofit association advocating increased retirement security through profit sharing, 401(k) and related defined contribution programs. For more information on PSCA, visit http://www.psca.org/.

American Express Retirement Services, a service group of American Express Financial Advisors, is a provider of services for defined contribution and 401(k) plans with total combined assets of more than $31 billion and a participant base of more than 1.2 million as of December 31, 2001. For more information on American Express Retirement Services, visit http://www.americanexpress.com/sponsors.

Registered investments and financial planning services are offered through American Express Financial Advisors Inc., Member NASD. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer. Retirement plan and trust related services are offered through American Express Trust Company.