May 19, 2008

The U.S. Conference of Mayors believes the issue of retirement security for city workers has never been more important. A market in flux, a weakening economy, and skyrocketing health care costs are conspiring to pose a real threat to their retirement security.

The U.S. Conference of Mayors is taking the initiative to help mayors help their city workers by focusing attention on the importance of saving for retirement through the USCM 2008 Save for Retirement Campaign.

The campaign offers mayors a huge opportunity to encourage city employees to save for retirement through 457 deferred compensation programs, and in doing so retain and attract highly qualified people and earn the goodwill of employees.

At the USCM Winter Meeting last January, Stamford (CT) Mayor Dannel P. Malloy emphasized several trends that should concern mayors:

Non-participating employees tend to be 35 years old or younger. Many don’t believe Social Security will play a major role in their lives in retirement.

The cost of health care is pressing employees. More and more employees are not only worried about paying for their own health care but also the cost of caring for their parents.

GASB 45 is requiring all city governments to show how they are going to pay for retiree health care.

Malloy continued his comments saying, “Combined, these trends are making our employees more financially uncomfortable than they’ve ever been. I believe the solution is to encourage them to participate in deferred compensation.”

“The Conference is excited about this initiative,” said USCM Executive Director and CEO Tom Cochran. “We have teamed up with our partner of 30 years, Nationwide Retirement Solutions, to help us build this exciting initiative for mayors. Our mayors are leaders and we want to help them lead their city on the issue of retirement security.” To promote the USCM 2008 Save for Retirement Campaign, mayors are encouraged to:

• reach out to their employees and promote the importance and benefits of saving for retirement and deferred compensation programs tailored specifically for public employees;

• promote city-sanctioned informational workshops for employees that are conducted by your city’s 457 deferred compensation provider; and

• sign a pledge to be a part of the USCM 2008 Save for Retirement Campaign.

Mayors should have received, via mail, a USCM 2008 Save for Retirement Campaign Communications Toolkit. The toolkit provides sample e-mail communications for mayors to convey their support of the Save for Retirement Campaign to department heads and employees. Mayors are encouraged to sign the pledge that is enclosed in the toolkit and return to the Conference. Your pledge will be a part of the national and local public relations efforts as this program is rolled out.

For more information about the USCM 2008 Save for Retirement Campaign, contact Kathryn Kretschmer-Weyland at The United States Conference of Mayors: phone 301-460-5251, e-mail kweyland@usmayors.org; or Jeffrey Bean at The United States Conference of Mayors: phone 202-446-8140, e-mail jbean@usmayors.org.