The Total View - (Page 6) Plan Loans • The average loan balance increased from $5,011 in 2003 to $7,013 in 2006. To learn more, turn to page 34. Participant Services • The majority of participants (more than 60 percent) chose The Principal secure website to get information and make account changes. To learn more, turn to page 39. Rollovers & Cash Withdrawals • Younger participants, those 34 or under, elected to receive a cash distribution option more often when changing jobs than any other age group, with 20 percent taking the cash. • Nearly 90 percent of the retirement funds for participants that changed jobs in 2006 remained invested in an account for retirement, and just over 10 percent elected a cash distribution option of their retirement funds. To learn more, turn to page 35. Matching Contributions & Plan Design • Forty-two percent of employees indicated that if the dollar amounts were the same, they would prefer to receive a higher employer match in their employer’s 401(k) plan than a wage increase. • The overall average match for plans with services by The Principal was 39 cents per dollar. To learn more, turn to page 36. Defined Benefit (DB) Plans • During 2006, DB plans totaling over $760 million in plan assets transferred their retirement plans to The Principal for administrative services. • The industry assets held in DB plans represent 35 percent of all industry retirement assets. To learn more, turn to page 41. Nonqualified Plans • The Principal saw a 10 percent increase in the number of nonqualified plans as well as a 15 percent increase in the number of participants. • In the fall of 2006, 85 percent of corporate plan sponsors reported offering a Nonqualified Deferred Compensation plan. To learn more, turn to page 49. Employee Stock Ownership Plans (ESOP) • Nearly half (42 companies) of the nation's top 100 majority-owned ESOP companies used The Principal for their administrative services. • A large majority of ESOP plans with services from The Principal were private plans; roughly 10 percent were public plans. To learn more, turn to page 53. 6
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