ABA Offering Certification in Employee Benefit Plans

Trust bankers seeking added credibility as administrators of employee benefit plans can earn a special credential through a new American Bankers Association program.

The credential, issued by the Institute of Certified Bankers, an ABA affiliate, would label trust professionals as specialists in administering these retirement programs.

Trust bankers can gain automatic certification until March 31 if they have at least 10 years of experience with retirement plans and a recommendation from their employer.

After that, bankers will need to take and pass a half-day exam covering details about 401(k) and traditional defined benefit plans.

The exam, which will be offered in July, will be offered to trust bankers having five years in administering employee benefit plans.

The institute decided to create the certification program in part to give banks a marketing edge over a growing number of nonbank retirement plan providers.

"It's needed because there are so many providers in the business now," said Amru Khan, a member of institute's advisory board. "Traditionally, when an employer needed employee benefit administration, they would more than likely give it to a bank."

Banks today, however, face a serious challenge from a variety of financial services companies, including insurance companies and brokerages.

Institute officials hope the certification program will help banks make the short lists of employers shopping around for plans, said Mr. Khan, a senior vice president with the institutional trust business at First Interstate Bank of California.

Under the direction of Marietta Castellano, a CoreStates Financial Corp. vice president, the institute has recruited dozens of senior level institutional trust officers from more than 30 banks, including Chase Manhattan Corp., to spread the word at banks.

Howard Walseman, an associate director at the institute, added that the credential can help employee trust experts gain a measure of respect within their institutions.

To receive certification, plan administrators need to be well-versed in details of the Employee Retirement Income Security Act of 1974, the labor law that governs pension plan administration.

"If you don't have the knowledge, you'd have a tough time passing the exam," Mr. Khan said.

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