Nationwide Financial offers Straight Talk about the Pension Protection Act
New campaign delivers actionable information in plain English
FOR IMMEDIATE RELEASE
Sept., 19 2007
Carah Brody (614) 677-0275
Erica Lewis (614) 249-0184
Columbus, Ohio— The Pension Protection Act of 2006 (PPA) opened up a world of new opportunities for retirement plans. But, the more than 900 pages of industry jargon and complex provisions, may have some investment professionals confused about how to turn the opportunities of the PPA into reality for their clients. Nationwide Financial Services, Inc. (NYSE:NFS) is taking out the guesswork and offering investment professionals and plan sponsors “Straight Talk” about the PPA. The new campaign highlights features of the PPA in plain English and provides tools to help investment professionals build and retain business.
“Defined contribution plans are the primary retirement savings vehicle for most Americans, if not their only. The Pension Protection Act offers several new features to help improve these plans and promote participation,” said Joe Frustaglio, national sales manager for Nationwide Retirement Plans. “We’re using straight talk to help investment professionals understand the opportunities within the PPA, and in turn, help their clients build better retirement plans.”
Retirement at Risk
The National Retirement Risk Index recently revealed that 44 percent of Americans are at risk for not maintaining their current standard of living in retirement1. That alarming statistic coupled with the more than 80 percent of plan sponsors who are concerned with helping their employees achieve a financially secure retirement2, leaves a huge opportunity for investment professionals to help their clients build a retirement plan that best meets their employees’ needs.
Power of the PPA
Beginning January 2008, the PPA provides several incentives for employers to add automated features to their plans. Automatic enrollment, deferral and escalation are simple ways to get employees into the plan and on the road to saving for retirement.
Other plan enhancements made possible by the PPA include the permanence of the Roth 401(k), allowance of investment advice, non-spousal beneficiary rollovers and the ability to select a qualified default investment alternative on behalf of plan participants.
Nationwide is breaking down the PPA, using simple, easy-to-understand language that will walk investment professionals through the primary provisions and help them create an action plan for their clients.
“The provisions within the PPA can benefit both the plan sponsor and the participant, but only if you can understand them and know how to leverage each one,” Frustaglio said. “We realize the demands on investment professionals’ time and hope that by talking about the PPA in understandable, actionable terms; they’ll be better prepared to serve their plan sponsor clients.”
Nationwide’s Straight Talk Resources
Nationwide has developed a series of materials for investment professionals that removes the legalese from the PPA and provides sales ideas broken into simple steps, including how to create an action plan for their clients. A plan sponsor piece also is available for investment professionals to use with their clients outlining how to take advantage of the PPA and implement its features within their existing retirement plan.
To get started today, investment professionals can call their retirement plan consultant at
800-626-3112, option 1.
About Nationwide Financial Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest3 and protect their long-term assets, and offers retirement plans and services through both public- and private- sector employers.
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 104 on the Fortune 500 based on 2006 revenue4. To obtain investor materials, including the Company’s 2006 Annual Report to Shareholders, 2006 Annual Report on Form 10-K, quarterly statistical supplements and other corporate announcements, please visit the investor relations section of the Company’s Web site at www.nationwide.com.
Nationwide, Nationwide Financial, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.
1 National Retirement Risk Index, Boston College Center for Retirement Research, August 2007 update
2 Cracking the Participant Code – Deciphering the New Retirement Security Mandate, 2007 Corporate Executive Board.
3 Trust programs and trust services are offered by Nationwide Trust Company, FSB a division of Nationwide
Bank SM. Nationwide Investment Services Corporation, member FINRA. In Michigan Only: Nationwide Investment Svcs. Corporation. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220
4 Fortune Magazine, April 2007
Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220