1 See Institute Memorandum to Pension Committee No. 9-97, Pension Operations Advisory
Committee No. 10-97 and Ad Hoc Committee On SIMPLE Plans, dated April 22, 1997.
2 See Institute Memorandum to Pension Members No. 19-97, Pension Operations Advisory
Committee No. 12-97 and Ad Hoc Committee On SIMPLE Plans, dated May 16, 1997.
[9163]
August 13, 1997
TO: PENSION COMMITTEE No. 30-97
PENSION OPERATIONS ADVISORY COMMITTEE No. 30-97
AD HOC COMMITTEE ON SIMPLE PLANS
SIMPLE SURVEY RESPONDENTS
RE: REQUEST FOR INFORMATION: SECOND SIMPLE PLAN SURVEY
______________________________________________________________________________
Last spring, the Institute conducted a survey of first quarter, 1997 SIMPLE plan and
account establishment.1 The survey results were useful to the Institute when advocating
regulatory and legislative clarification of SIMPLE rules. For instance, the recently enacted
Taxpayer Relief Act of 1997 contains several technical corrections to last year’s SIMPLE
legislation, most notably a retroactive statutory resolution to the self-employed/partnership
matching contribution issue, which was explained in a prior memorandum.2
SIMPLE plan data is also extremely useful to the Institute as it develops future policy
positions, particularly as legislators and policymakers address issues pertaining to small
employer pension coverage, which promise to be the subject of Congressional hearings this fall.
To develop policy positions on small employer coverage, we need to measure the extent of the
SIMPLE program’s success in increasing coverage among small employers. Hence, this second
survey.
We again seek your assistance in assembling data on the SIMPLE plan marketplace.
The attached questionnaire is identical to the first survey, with the exception of two new items.
The new items seek information to determine whether the SIMPLE is extending retirement plan
coverage versus replacing pre-existing plans and whether the 25% penalty tax on premature
withdrawals is successfully limiting account withdrawals.
Based on data available to you as of July 31, 1997, please complete the attached brief
questionnaire and fax it to the undersigned by Friday, September 5, 1997. As with our first
SIMPLE survey, all firm-specific information will be kept confidential and only aggregate data
disseminated publicly.
Russell G. Galer
Assistant Counsel - Pension
Enclosure