Publications: Press Release

August 12, 2008

Media Contact:      Matthew Eiserloh       (866) 933-IFLC

IFLC ANNOUNCES PLAN SPONSOR TASK FORCE

Washington, D.C. - The Investment Fiduciary Leadership Council ("IFLC") announced today the formation of a new task force convened to study fees charged to retirement plans by third party service providers. The Task Force on ERISA Fees Disclosure and Conflicts of Interest will evaluate the implications of pending changes in the Department of Labor's fee disclosure and conflicts of interest rules. The new disclosure rules are expected to have a major effect on the way retirement plan sponsors select and monitor their service providers.

For the Task Force, IFLC has assembled a diverse group of retirement plan sponsors. The Task Force has begun an historic, collaborative effort. Its mission is twofold. The first is to develop a comprehensive process for ensuring the reasonableness of fees charged by service providers. The second part of its mission is to identify if, and where, conflicts of interest in service providers' offerings exist and how to reduce or eliminate them.

Ronald E. Hagan, Chairman of IFLC made the following statement: "The Employee Retirement Income Security Act ("ERISA") requires that retirement plan officials ("fiduciaries") conduct themselves according to a prudent process. Steps should exist within such a process that help plan officials prove that the services they acquire on behalf of their ERISA plans' participants are reasonably priced and have acceptable conflicts of interest. Yet, no standard procedure exists for fiduciaries to follow that attests to their prudence and gives safety to their decisions."

"All of our research to date shows that standardizing the "reasonableness test" and shining a light on the insidious conflicts that exist in the current system will have a transformative impact on retirees' nest eggs, fiduciary risk, and society. Without adequate preparation and study, however, attempts to make improvements could be more dangerously disruptive than doing nothing at all."

"IFLC is honored today to announce the important work being done by the Task Force. Its members share IFLC's vision that now is a critical moment to begin dialogue on the issues before us and to include people with proficiency and experience that span the U.S. retirement community."

Hagan continued, "The goal of the Task Force is to establish fee testing practices that eliminate the ambiguity in fiduciary conduct that afflicts tens of thousands of retirement plan sponsors. Action needs to be taken now to prepare plan sponsors for the mountain of new fee and conflict of interest disclosures from service providers that a new Department of Labor regulation will soon generate. The hazardous potential from doing nothing could swamp fiduciaries. The result could deny any hope of realizing the benefits of the long overdue retooling of the ERISA market that is coming in 2009. The Task Force on ERISA Fees Disclosure and Conflicts of Interest is led by a talented group of charter members who are committed to completing its important work."

IFLC is the international association of Investment Stewards, which includes retirement plan sponsors, Investment Advisors, and Investment Managers, who are certified against the Global Fiduciary Standard of Excellence. IFLC promotes public awareness of fiduciary standards, education, and the crafting of effective fiduciary policy to maximize benefits to retirees and reduce dangers to their accounts.

Headquartered in Washington, D.C, IFLC is an association of organizations that have been certified by CEFEX. IFLC is a leading advocate of fiduciary standards for the U.S. retirement plan industry. Visit IFLC's website at www.iflcouncil.org.

ABOUT THE TASK FORCE ON ERISA FEES DISCLOSURE AND CONFLICTS OF INTEREST

An executive summary that describes more about the Task Force is available online. Please click on this link http://www.iflcouncil.org/publications-ExecSummary-TaskForceGoal.html.