The American Society of Pension Professionals & Actuaries (ASPPA) has set up a new professional society, the National Association of Plan Advisors (NAPA).
NAPA will be open to broker-dealer firms, registered investment advisors, product providers, recordkeepers, advisor support services companies, and other companies with an interest in the 401(k) plan market, according to ASPPA, Arlington, Va.
Members could include benefits lawyers as well as plan advisors and consultants, ASPPA says.
ASPPA Executive Director Brian Graff says NAPA will provide networking opportunities and business education and information services but will make advocacy a priority.
"Unfortunately, Washington policymakers underestimate the role plan advisors play in the retirement industry," Graff says in a statement. "Given our economic uncertainty and the debate over the future of 401(k) plans, there has never been a more important time for retirement plan advisors to provide a unified and strong voice on these issues."
The first president of NAPA is Marcy Supovitz, a principal at Boulay Donnelly & Supovitz Consulting Group Inc., Worcester, Mass.
ASPAA also is the parent of the National Tax Sheltered Accounts Association, the Council of Independent 401(k) Recordkeepers and the National Association of Independent Retirement Plan Advisors.
News of the formation of NAPA's formation comes as the congressional Joint Select Committee on Deficit Reduction – the 12-member "Super Committee" — is racing to come up with $1.2 trillion in deficit reduction proposals by Thanksgiving.
Many budget policy experts have argued that Congress should try to cut the deficit by attacking "tax expenditures" – deductions, exclusions and other tax code features that reduce the revenue-raising power of existing taxes.
Retirement services groups have questioned the wisdom of undermining saving incentives at a time when defined benefit pension plans are declining and policymakers are talking about overhauling the Social Security retirement benefits program.
Alan Greenspan, a former Federal Reserve Board chairman, recently testified before Congress that Congress should reduce or eliminate the group health tax exclusion but keep any tax breaks that promote long-term retirement savings.
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