ALOM Retirement Plan Solutions
According to the U.S. Department of Commerce, Americans save on average only 4% of their incomes, and should save three times that amount to maintain a comfortable retirement. Are you retirement ready?
Allegheny League of Municipalities (ALOM) member municipalities and affiliates are afforded a unique opportunity to participate in a Deferred Compensation Plan that serves as an outstanding avenue for employees to save for retirement during their wage-earning years.
Managed via a partnership with Prudential, the ALOM administered plan currently holds over $200 million dollars in assets and was designed with your employees’ unique financial needs and retirement goals in mind. It’s a Plan that offers a wide variety of benefits and investment choices, including an extremely competitive Guaranteed Interest Account which is a competitive fixed rate. Click here for an informational sheet about Prudential.
Why Do I Need ALOM Retirement Solutions?
- 43 percent of households incorrectly predict their retirement readiness
- Only 17 percent of Public Sector Employees are ‘very confident’ that they will not run out of money in retirement. – Click here to read more.
- Pension enhancement can attract and retain better employees, reducing new employee training costs; and 47 percent of Public Sector Employees say that at-risk pensions influence their commitment to a public sector career
Financial Wellness in the Public Sector
In March 2017, The Economist Intelligence Unit (EIU) conducted a survey sponsored by Prudential that explored the financial realities of public sector employees. The questions focused on their financial literacy, attitudes toward pensions, approaches to financial planning and ability to fulfill their aspirations.
The survey found that, for most, the robust public service pension was a significant determinant in a public sector career choice—and that many are now deeply worried about their future financial security. The survey also uncovered a disconnect between the confidence people express in their grasp of financial affairs and their actions: Most have taken just rudimentary steps to safeguard their long-term financial well-being.
But the data suggests that those who draw more heavily on outside expertise are substantially better positioned than their colleagues to face the future confident in their financial security. Their example may help other public servants plot a path to a successful retirement. Click here to read the Executive Summary of the Survey Data Results
What is a 401(a) plan?
In some respects, a 401(a) plan is similar to 401(k) plans commonly available to government employees. It allows for a combination of employee and employer contributions should you offer a match or employer contribution.
What is a 457 plan?
A 457 is a type of retirement savings plan that allows employees to defer a portion of their pay to meet long-term supplemental savings objectives that their pension alone might not achieve.
Current plan participants – click here for resources and tools.
Prospective plan participants – click here to learn more.
Why Enroll Your Municipality in ALOM’s Retirement Solutions?
Pension plans are not meant to replace 100% of an employee’s income. In fact, the average yearly benefit paid by the Pennsylvania State Employees’ Retirement Systems (SERS) is only $25,839. And individuals collecting a Pennsylvania pension have no automatic protection against inflation. So it’s easy to see why finding additional ways for your employees to save for retirement is so crucial.
As a Pennsylvania public employer, you have a unique opportunity. You can offer your employees the ALOM 457(b) Deferred Compensation Plan or ALOM 401(a) Plan, sponsored by the Allegheny League of Municipalities—even if you already have a Defined Benefit pension plan, or even a 457 or 401(a) plan with another provider. Click here to read our brochure and learn more about how you can give your employees one more tool for their future.
Currently approximately 30 ALOM municipalities participate in the Plan. This consolidation of ALOM municipalities enables you to enjoy institutional class shares for the mutual funds in the Plan. Additionally, the plan is governed by a committee of local government administrators in Allegheny County.
- Municipalities can participate through a 401(a) pension plan option offering the opportunity to match employee contributions at a certain rate. Click here to view and download a 401(a) workbook.
- Alternately, for municipalities that already provide a defined benefit pension, the ALOM 457 deferred compensation plan serves as an additional retirement plan for employees wishing to complement their current benefits. Click here to view and download a 457 workbook.
Resources for Your Employees
As a participant in ALOM’s Retirement Solutions, we are here to provide you the tools and resources you need to engage your employees and help them make informed decisions about their retirement options.
Acting now could help you and your employees earn thousands of extra dollars for tomorrow. Consider the benefits participants can enjoy by taking advantage of the ALOM Deferred Compensation Plan:
- A systematic way to save early. Even starting small, early savings can really grow over time
- Potential tax savings now. Pre-tax contributions can lower your current federal tax bill
- Or potential tax savings later. Roth after-tax contributions could pay off big down the road
- Grow your savings. With the earning power of compounding your money has the potential to grow
- Build your portfolio based on your comfort level
Participant Engagement Workshops
Hosted by expert Prudential retirement counselors, our unique Retirement Labs and Educational Workshops are
a proven way to inspire and motivate participants. They’re part of Prudential’s four-step, behavior-based approach, designed to engage, educate and empower participants at every stage of their retirement planning. With online and on-site options, we are sure we can help. Click here to read more about Prudential’s Retirement Counselor Workshops.
There is a wealth of information available about current trends in retirement savings, important FAQ’s and trends in the industry. Below you will find a number of articles that may be of use to you and your employees.