USCM Launches “Save for Retirement Campaign”
By Kathryn Kretschmer-Weyland
August 11, 2008
Kicking off the Conference’s “Save for Retirement” campaign, Stamford (CT) Mayor Dannel P. Malloy urged all mayors to take part in a national effort to help municipal employees help themselves by contributing to their city’s deferred compensation program.
“Too many city employees are missing the opportunity to participate in a deferred compensation program because they are not fully informed,” said Malloy. “That is why we are promoting the “Save for Retirement” initiative with Nationwide Retirement Solutions, a program aimed at giving mayors, managers, department heads and employees tools and resources to educate and encourage retirement savings through their city’s 457 deferred compensation plan.”
Today, city budgets aren’t the only budgets being stretched thin. Municipal employees are feeling the pinch every day. In fact, they are increasingly impacted by several mega trends influencing public employees’ retirement benefits that include:
The declining solvency of Social Security. Those age 35 and younger aren’t looking to Social Security to meet their retirement needs and that certainly includes a growing number of municipal employees.
Astronomical growth in the cost of health care. It shows no sign of slowing in the next several generations. This will present us all with a significant cost management challenge for a long time.
The call for greater fiscal accountability. Benefits once funded by future obligations are coming due today. Funding requirements like GASB45 are changing how we manage our cities.
Malloy’s Statement
“In their own lives, rising energy, food and healthcare costs are increasingly causing employees concern about the high costs associated with living in retirement. Many realize that they need to save more for their retirement years but don’t know how to prepare given the recent economic crunch. Fortunately, municipal employees have the benefit of a retirement savings program that can assist them in accumulating assets for retirement easier. Some have already discovered the benefits. In fact, A recent study conducted by the Center for Retirement Research at Boston College and sponsored by Nationwide Retirement Solutions found that employees who are involved with a deferred compensation program are better prepared for retirement and more optimistic about their future.
Unfortunately some is not enough. Our public employees are looking to us for leadership on many fronts. Saving for Retirement is no exception. Just consider that:
Eight out of ten eligible employees are significantly influenced to enroll in a deferred compensation plan based on the recommendation from an influential person in their lives.
Eligible, non-participating employees carry 30 percent more debt than participants and are less likely to have a budget or financial plan.
Participants are more optimistic than non-participants about their ability to live comfortably in retirement.
Eligible, non-participants are nearly twice as likely to look to their employer’s pension plan and social security for income in retirement.”
Malloy concluded his remarks by encouraging fellow mayors to “...utilize the Conference’s comprehensive tools and resources to promote retirement savings. As many of you know, the initiative begins with each mayor signing a pledge to:
Actively promote retirement savings among our city employees;
Open our cities to workshops by offering qualified deferred compensation programs to help employees understand the importance of saving for retirement with the tools and options available to them; and
Actively promote Saving for Retirement throughout the year leading up to National Save for Retirement Week, October 19-24.
Your leadership is critical to the initiative's success, which we believe will offer a tremendous opportunity to municipal employees throughout the country.”
At the conclusion of the mayor’s remarks, Louie Watson, Vice President of Strategic Relationships at Nationwide Retirement Solutions thanked Malloy for his active leadership in promoting participation in deferred compensation programs and the Save for Retirement campaign.
“Nationwide has been servicing public employees for over 30 years and we are proud to join with the Conference in promoting Save for Retirement week” said Watson. “Workers are less prepared today for retirement than anytime over the past 20 years. Almost 60 percent of employees are at risk for not being financially prepared for retirement. Mayors can make a difference in the lives of their employees and we at Nationwide are here to help you do just that.”
For additional information on USCM’s Save for Retirement campaign and/or a copy of the tool kit you can visit the Save for Retirement website at usmayors.org/saveforretirement or contact Jeff Bean at jbean@usmayors.org or 202-4446-8140 or Kathryn Kretschmer-Weyland at kweyland@usmayors.org or 301-460-5251.
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