NAGDCA's top priorities for 2006 are making EGTRRA provisions permanent and more study of default plan options, according to a webcast today from the National Association of Government Defined Contribution Administrators.
Susan White, NAGDCA's legislative counsel, said EGTRRA provisions that include catch-up contributions to 457 plans are facing expiration in less than three years.
Automatic enrollment is another priority for NAGDCA, Bridget Flynn, director of federal tax and retirement policy for Nationwide Retirement Services, said at the webcast. But although there's increased interest in automatic enrollment in the private sector, where it is offered by 20% of plans, many corporate plan sponsors also is taking a hard look at less conservative default options and automatic rebalancing. "These are lessons for the public sector," Ms. Flynn said.
Ms. Flynn said that the participation rate for 457 plans was 34% in 2005, an increase of four percentage points over 2003. The participation rate in private sector DC plans is 70%, she added.