DeGrassi: It’s Up to Us to Do Right!

“They cannot beat us when we work together!”, NTSA Executive Director Chris DeGrassi exhorted attendees at the June 22 opening general session of NTSA’s 403(b) Summit in Washington, D.C. DeGrassi and Associate General Counsel/Director of Government Affairs Ronald J. Triche provided a summary of progress — and challenges facing NTSA members — in making sure the clients they serve have the freedom to choose how best to invest for their retirement. 

DeGrassi stressed the importance and effectiveness of members’ grassroots efforts. He cited a very recent example: legislation in the Pennsylvania that seeks to address the large unfunded liability facing its public pension system. “We reached out to our members — in just a week they sent more than 300 messages to state legislators,” he reported, adding, “NTSA was there to advocate” for participants in that system.

DeGrassi listed states in which legislation that would change their state pension system is in the works or being studied. He called on NTSA members to help the legislators in those states understand the importance of a system that offers choices to teachers and public-sector employees. “The policymakers are seeing that they have a problem,” said DeGrassi. “The problem is, they don’t know what they’re doing. They need someone to tell them.”

Triche observed that there is a similar phenomenon on the federal level. “Federal lawmakers are being told that advisors are not doing their jobs right,” he told attendees. He assured them that NTSA is working to address that. “We talk to FINRA, IRS, DOL to let them know the industry is not broken — you’re doing your job.”

Triche also reported on the Department of Labor’s proposal to issue regulations on the definition of a fiduciary. The proposed regs — now renamed the “conflict of interest rule,” by DOL officials — will not be issued until January 2015 at the earliest. But “It’s a topic that’s not going away,” Triche warned, adding a call to NTSA members: “Let’s keep it in the hands of people who know what they’re doing.”

DeGrassi exhorted those present to remember why they are in the business in the first place and to redouble their efforts on behalf of those whom they serve.  “These are people who need your help — and it’s just like my Mom told me: ‘Do right.’”