November 21, 2005

Retirement readiness is increasingly on the minds of workers across the United States. Employees wonder if they are financially ready and able to retire. They wonder, what makes – or will make the difference – between a questionably secure future and a potentially solid one. For more than a quarter of a century, The United States Conference of Mayors and Platinum Member Nationwide Retirement Solutions have worked together to ensure that city employees have the tools they need for retirement planning. It is not only a question of money, but whether or not one has the necessary education, information and viable diverse savings vehicles. The Conference and NRS have worked hard over the last twenty'six years to ensure that city employees have the opportunities and information necessary to save for a rewarding and secure retirement. The USCM/NRS Deferred Compensation program continues to allow city employees to contribute to a supplemental retirement fund to assist them in realizing their retirement goals. Recently, NRS took the time to visit with some plan participants from the city of Chicago. The stories of these participants illustrate how participating in the City of Chicago’/NRS Deferred Compensation or any of the USCM/Deferred Compensation plans can give wise workers the confidence and tools they need at the various stages of retirement planning and in retirement itself.

Edward Shaughnessy, a 28-year veteran SVU officer with the Chicago Police Department who is close to retirement, enrolled in the deferred compensation plan in 1982 at the very beginning of his career and the start of the plan. “I just thought it was a good idea,” says Shaughnessy. “I had been married for just a few years and had no children, and thought it was a good way to save money for the future.” Shaughnessy also has served as a pension mentor of sorts within the department. “I tell young policemen that it’s the best thing that was ever offered to the police department. Our pension is wonderful, but if you live for any length of time, it’s not enough – this money is a nice supplement.” Reflecting about his father, Shaughnessy notes, “My father also was a policeman and lived over 20 years on his pension, but he had just enough to be comfortable, without living like he did when he had a full salary. Had he had this, it would have been wonderful.”

James Ramos, a 35 year old police department employee enrolled in the deferred compensation program eight years ago when he came on board with the police department. In fact, the concept of “supplemental retirement” was alien to him - someone who thought he had “seen and heard about everything.” While he does not know if his fantasy to retire in 2010 will become a reality, the city’s deferred comp plan is one way to make his sooner-than-later retirement dream come true. “It makes a difference when you look back and you have put some money away, and it has added up. It is money that you didn’t even see. It helps out.” Ramos is not sure what he wants to do in retirement. He has he yet to strategize about how the supplemental retirement income will specifically impact his plans. However, he is sure of one thing – deferred comp is “a good way to save money, invest, and make some money,” which makes retirement appear even more inviting.

Gary O’Sullivan, a long-term employee with the City, retired less than two years ago. “I’ve been a participant in the deferred compensation program since I have been with the city. It’s a wonderful program and allowed me to take advantage of early retirement.” Bill Fitzgibbons, a foreman for the Bureau of Bridges offers a different insight to city employees. Fitzgibbons notes that he originally contributed just $50 a pay period. Fitzgibbons notes, “Looking back, I wish I had put the maximum in immediately. The thing to do would have been to max out as a young officer instead of later when there are children.”

Whether early in the retirement planning process or already reaping the benefits of careful planning and saving, city employees see the value of participation in the USCM/NRS deferred compensation program. USCM and NRS continue to work to spread the word about the importance of early and complete retirement planning.

For more information on how the employees in your city can benefit from the USCM/NRS deferred compensation program, contact USCM staffers Katie Logisz at 202-861-6739 or send e-mail to klogisz@usmayors.org or Kathryn Kretschmer-Weyland at 301-460-5251 or send e-mail to kweyland@usmayors.org. Information is available on the web at www.usmayors.org/partners/nationwide.htm or www.nrsforu.com.