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 your employees 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 and supplement your employer-provided retirement benefits.
Managed via a partnership with Empower (formerly 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.
Why Do I Need ALOM Retirement Solutions?
- Across America, an increasing number of private and even public sector employees are not sufficiently prepared for a dignified retirement on their terms.
- 64 percent of Americans are expected to retire with less than $10,000 in their retirement savings accounts
- Nearly half (46%) of Americans describe themselves as financially struggling, up from 22% in May 2020. 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.
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 $30,509 for workers at full retirement age, and only $23,939 overall. And individuals collecting a Pennsylvania pension have no automatic protection against inflation.
Read more to see the challenges faced by public sector workers and Empower’s resources. So it’s easy to see why finding additional ways for your employees to save for retirement is so crucial. Click here to learn more about retirement in the public sector.
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.
Currently approximately 40 ALOM municipalities and entities 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. 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.
- 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. 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.
If you would like to speak to someone about enrolling your municipality, or if you have questions please contact Jason Davidek at firstname.lastname@example.org or Patrick Reisinger at PatR@centuriongroupllc.com.
Securing Participant’s Retirement Income
If you want to supplement your employees’ retirement income, IncomeFlex is an available option within this retirement plan. Your participants spend decades in retirement. Offering IncomeFlex can provide your participants peace of mind by guaranteeing lifetime income. What’s more, over working years, IncomeFlex protects participants’ money from market downturns while benefiting savings during market upturns.