By Kathryn Kretschmer-Weyland
December 17, 2007

Lou Moreno has been listening to city employees. He understands their needs. If mayors are looking for ways to leave a legacy for the workers who improve the quality of life in your communities, they should consider the benefits of the Conference of Mayors membership.

As Regional Vice President for Nationwide Retirement Solutions, and active in the deferred compensation industry for more than 25 years, Moreno knows one of those benefits well. “For more than three decades, The United States Conference of Mayors has been at the forefront in helping city employees achieve financial security on the job and in retirement,” Moreno says. The USCM Deferred Compensation Program — a major benefit of the Conference of Mayors membership — is a prime example of that effort. Moreno had the opportunity to travel the country with Conference Executive Director Tom Cochran to meet with mayors and staff to tell them about the value of the partnership and services offered by Nationwide.

A supplemental retirement savings plan, the USCM Deferred Compensation Program empowers city employees with a tax-deferred vehicle that can help them secure their future. “The unique feature of the USCM Deferred Compensation Program is that it is governed under Section 457 of the Internal Revenue Code. Section 457 offers participants certain features not found in 401(k) or 403(b) plans, or in IRAs,” Moreno says.

Public employees, especially police and firefighters, often retire well before age 59˝. As participants in an eligible governmental 457(b) plan, public-employee retirees can take eligible distributions from their plan account with no early withdrawal penalty — a benefit not found in other qualified plans or IRAs. Participants pay ordinary income taxes when and as they take distributions.

In addition, eligible participants who have retired as “public safety officers” may elect to exclude up to $3,000 per year from their federal income taxes by using 457(b) plan distributions to pay qualified health and long-term care insurance premiums.

For Moreno, the USCM Program advantage is Nationwide’s educational approach to participant service. Nationwide’s Join it! Learn it! Live it! workshops and one-on-one service from their retirement specialists are designed for educational purposes.

“The USCM Program offers employees the ability to defer the federal income taxes and potentially increase their retirement security,” Moreno says. “Nationwide is here to help employees of USCM-member cities achieve retirement-income security through the USCM Deferred Compensation Program.”

Moreno adds that the Conference of Mayors works closely with Nationwide to ensure that the program remains competitive and a good value.

For additional information of USCM Deferred Compensation Plan offered by Nationwide Retirement Solutions, contact Kathryn Kretschmer-Weyland at 301-460-5251 or send e-mail to kweyland@usmayors.org.