Application
of Carol D. Gold for the Position of Director, Employee Plans
September 3, 1999
Ms. Evelyn A. Petschek
Assistant Commissioner of EP/EO
Internal Revenue Service
Employee Plans Division, CP:E Room 3408
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Re: Application of Carol D. Gold for the Position of Director, Employee Plans
Dear Ms. Petschek:
The American Society of Pension Actuaries (ASPPA) supports the candidacy of Carol
D. Gold for the position of Director, Employee Plans.
ASPPA is a national organization of approximately 3,700 members who provide actuarial,
consulting, administrative, legal and other professional services for about
one-third of the qualified retirement plans in the United States, the majority
of which are maintained by small businesses. ASPPA's mission is to educate pension
actuaries, consultants, administrators, and other benefits professionals and
to preserve and enhance the private retirement system as part of the development
of a cohesive and coherent national retirement income policy.
For much of this decade, ASPPA, through its Government Affairs Committee and
its Executive Director, has worked closely with Carol Gold as a senior staff
member in the Employee Plans Division and in her current capacity as Director,
Employee Plans. The scope of that work has covered such disparate issues as
the development of the IRS' remedial programs for qualification failures for
qualified plans and 403(b) arrangements; the development of regulations and
other guidance; revisions of the Form 5500 and other IRS forms; concerns over
IRS procedures and programs; issues related to plan documentation and the favorable
determination letter process; and IRS outreach and educational programs.
Our experience is that Ms. Gold engages an open and honest dialogue with the
private sector and earnestly works to understand our concerns and to gain our
input on both technical and practical issues in the operation of qualified plans.
Most of the plans administered by ASPPA's members cover fewer than 100 employees
(that is, they would be classified as small plans). Because the requirements
for qualified plans are so voluminous and complex, and because small employers
do not have sophisticated in-house benefits employees, those employers necessarily
rely heavily on the services of ASPPA's members to establish and operate those
plans. As a result, ASPPA's members-most of whom are small businesses-deal with
the qualified plan problems of small businesses every day. In effect, ASPPA's
members live with the technical and practical burdens and benefits of small
plans. As a result, ASPPA's members are uniquely suited to represent the interest
of those employers in providing advice and counsel to the IRS. Correspondingly,
because the rules are so complex, and because of the burdens of running entrepreneurial
and family businesses, it is virtually impossible for the business owners and
officers to effectively represent themselves in discussions with the IRS on
technical issues.
With that in mind, ASPPA has valued its relationship with Ms. Gold because she
has provided the "open door" for us to express the needs and concerns, on both
a technical and practical level, of the hundreds of thousands of businesses
which sponsor plans covering fewer than 100 employees, as well as the issues
facing larger plans. That dialogue is valuable because of the benefit it provides
to the IRS in the development of guidance and enforcement projects. It is also
valuable because of the insights that it provides to the private sector about
the IRS' concerns and objectives. We value this "partnership" that has developed
with Ms. Gold and, because of its importance to ASPPA and its members, we support
the candidacy of Ms. Gold for the position of Director, Employee Plans.
In addition to appreciating the "open door" policy fostered during Ms. Gold's
administration as the current Director, Employee Plans, ASPPA was to specifically
endorse her work on the voluntary correction programs for qualification defects
and her support for, and participation in, the Regional Outreach programs.
During Ms. Gold's administration, the private sector has benefitted from the
expansion of the administrative policy for correcting defects (APRSC), the integration
and expansion of the correction programs in the Employee Plans Compliance Resolution
System (EPCRS), and the recently published correction examples. Combined with
the training of the Revenue Agents in the field, this guidance has proven to
be a powerful force in the voluntary correction by employers of plan defects
and thereby to protect and enhance the benefits of participants in qualified
plans.
Regarding the Regional Outreach Conferences, ASPPA co-sponsors the Western and
Midstates Conferences and is a key participant in the Northeast Conference.
The IRS' co-sponsorship and participation in those conferences bring much-needed
technical guidance to the service providers in those regions. The effect of
that education and communication is to support and facilitate voluntary plan
compliance-which is a goal of both the IRS and ASPPA. Carol Gold has actively
supported and participated in those programs. Her participation, and her technical
skills, provide leadership both within and outside the IRS for open communication
on technical issues between the IRS and the benefits community.
Finally, we would be remiss if we did not comment on the attitude of the personnel
in Employee Plans during your administration and Carol Gold's administration.
During the early '90s, the relationships between Employee Plans and ASPPA were,
at best, strained and trust levels were low. During your administration of and
Ms. Gold's, the wounds of that era had been healed and the spirit of cooperation
is at the highest level in the last two decades.
For the reasons expressed in this letter, ASPPA requests that Ms. Gold be appointed
as the Director, Employee Plans.
Very truly yours,
C. Frederick Reish, APM Brian Graff, Esq.
ASPPA Government Affairs Committee ASPPA Executive Director
Craig Hoffman, APM, Co-Chair
ASPPA Government Affairs Committee
Bruce L. Ashton, APM, Co-Chair
ASPPA Government Affairs Committee
R. Bradford Huss, APM, Chair
ASPPA Administration Relations Committee
CFR:shm