November 13, 2001

The Honorable Susan Collins
United States Senate
Washington, DC  20510

Dear Senator Collins:

We are writing in strong support of your legislation to be introduced, the “Independent Investment Advice Act of 2001.” This bill you are introducing along with Senator Bingaman, would provide retirement plan sponsors with a safe harbor with respect to the designation and monitoring of independent investment advisers for workers managing their retirement plan assets. In doing so, the Bingaman-Collins bill will make independent investment advice more accessible to the American workforce.

ASPPA is a national organization of over 5,000 retirement plan professionals who provide actuarial, consulting, and plan administrative services for approximately one-third of the qualified retirement plans in the United States, covering millions of working Americans. The vast majority of these retirement plans are plans maintained by small to medium-sized businesses.

A 401(k) plan is the most common retirement plan offered by a small business. In the vast majority of these plans, the workers are responsible for making their own investment choices. Consequently, ASPPA members clearly recognize the importance of making effective and unbiased investment advice reasonably accessible to plan participants.

According to a 1999 survey conducted by the Institute of Management and Administration, Inc., concerns about fiduciary liability were by far the most significant reason employers did not offer investment advice to their employees. By providing employers with a safe harbor, the Bingaman-Collins bill effectively addresses this impediment to investment advice in a manner that fairly and appropriately protects both participants and plan sponsors. We wish to congratulate the tremendous effort made by you and your staff to craft legislation that effectively balances the concerns of both employers and employees.

The Bingaman-Collins bill will succeed in making quality investment advice more available to retirement plan participants. We look forward to working with you toward final passage of the Independent Investment Advice Act of 2001.

Sincerely,

Brian H. Graff

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