Subject: File No. S7-14-08
From: Thomas L. Geer, J.D., LL.M.
Affiliation: Principal, Benefit Plan Solutions

October 14, 2008

This is not an attempt to make any detailed comments, but rather to advocate for two general notions.

In the 403(b) plan marketplace, the vast majority of investments are either individual annuities or mutual funds. Structurally, the more complete disclosure requirements give annuities a distinct advantage. This is the case because state insurance disclosure rules simply do not provide the capacity to track all expenses intervening between the investor and the underlying investments themselves.

The individual annuities are rarely annuitized, and the annuities are therefore de facto mutual funds. My perception is that the annuities generally have higher expenses, in part because they pay for a much more expensive distribution system than that for mutual funds.

I hope that your efforts will create a system in which investors can make adequate comparisons of expenses.

In addition, there is very little disclosure of withdrawal/surrender penalties and charges, of market value discounts of fixed income funds or of restrictions on withdrawal such as maximum withdrawal rates. Full disclosure of CDSCs in mutual funds is certainly required, and their equivalents should be disclosed with respect to annuities.

Thank you for your time and attention.