1. LEGISLATIVE & REGULATORY ACTION WHAT TO EXPECT
A Look at President Bush’s Proposed Retirement
Program and Other Legislative Changes
David L. Wray, Profit Sharing / 401(k) Council of America
for Transamerica Retirement Services, April 23, 2003

2. 2002 IN REVIEW 2003 DC Is The Status Quo 1988 1995 1999 2002
Private DB $912B $1.46T $2.45T $1.59T
Private DC $591B $1.46T $2.53T $2.10T
IRA/KEO $419B $1.29T $2.45T $2.47T
STATE &
LOCAL N/A $1.30T $2.23T $1.97T

3. 2002 IN REVIEW Politics trumps policy in a political crisis.
Never underestimate the power of the White House.
Worry more about your allies than your opponents.
Reconstitute coalitions if necessary.
Time is on your side.
It’s much easier to kill a bill than pass one.

4. “ENRON LEGISLATION”
Ban on insider trading during a blackout (enacted).
Notice of blackout (enacted).
Diversification of company stock.
404(c) defense during a blackout.
Benefit statements and diversification notices.
Advice.

5. THE ELECTIONS The rise of the investor class.
Senate in Republican hands.
Control over committee agendas.
Control over floor schedule.
Bipartisanship still required.

6. 2003 AGENDA The White House Pension issues in stimulus bill? Not Yet.
-EGTRRA permanency
-Accelerate plan and IRA limits
-Required minimum distribution relief
Restructuring Saving & Investing
-Deemed Dividends
-After tax savings accounts (LSA’s)
-Budget impact
-Retirement Savings
-Individual
-Government
ERSA’s & Simplification

7. Portman/Cardin To The Rescue?
Acceleration of IRA and plan contribution limits to maximum amounts
Other IRA relief
Eliminate marriage penalty for income eligibility
Allow rollovers to non-spouse beneficiaries
Accelerate higher income eligibility limits
Expanded and permanent Saver’s Credit
RMD age raised to 75, first $300K exempted
10% nonelective contribution added to SIMPLEs

8. PSCA’s 2003 LEGISLATIVE AGENDA
Support pension provisions in HR 5553.
Improve safe harbor plans by eliminating immediate vesting and encouraging automatic enrollment.
Repeal top heavy.
Allow all SIMPLE assets to flow to qualified plan.
Improve catch-up by permitting pay period analysis.

9. We’re in the Dream Delivery Business
CONCLUSION
In 2003 It’s at 40,000 Feet & In The Trenches
We’re in the Dream Delivery Business

10. Visit Us Online For More

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