City of Rochester Receives Retirement Readiness Award in Dallas, Texas
Updated: 06/21/2014 11:01 PM
Created: 06/21/2014 3:32 PM KAALtv.com
(ABC 6 News) -- In Dallas, Texas today, the United States Conference of Mayors honored the city of Rochester, Minnesota and Mayor Ardell Brede with Retirement Readiness Award.
The City of Rochester recently enhanced its deferred compensation program. Improvements include:
Adding Target Date Funds (TDF) and Advisory Services – 24% of city employees who are enrolled in the enhanced program now use TDFs or Managed Accounts – improving diversification.
Offering a Roth 457(b) option – Roth lets participants contribute to their plan on an after-tax basis. This provides them with a possible solution to balance the taxes they may pay on their retirement income.
Introducing a robust participant website – Participants use the Web for many plan aspects – including education about fund choices, training on tools and access to the Retirement Income Control Panel, which provides a realistic look at what a participant’s projected monthly income at retirement might be.
Reducing the administrative fees participants pay by more than $92,000 a year (average of $270 a participant) – This is additional money that will stay in participant’s accounts and help them achieve the retirement they imagine.
In accepting the award, Mayor Brede said, among the many benefits city employees now receive is on-site education with easy-to-understand materials in a timely manner with individual support.
He added, “USCM’s fiduciary oversight also ensures our plan’s investment options are continually monitored and best practices are followed.”
According to Tom Cochran, USCM CEO and Executive Director, “The retirement program not only focuses on providing excellent retirement solutions, but also on educating cities about meeting their fiduciary responsibilities. The City of Rochester is the perfect example of helping their employees be retirement ready.”
In Dallas, Texas today, the United States Conference of Mayors honored the city of Rochester, Minnesota and Mayor Ardell Brede with Retirement Readiness Award.