Sorry, you need to enable JavaScript to visit this website.
Skip to main content

Monday, December 09, 2024

Taft-Hartley defined contribution plans 
Helping members pursue a more secure retirement | Second edition

With union members playing such vital roles in helping our nation run smoothly, it’s vital that we help them pursue financial freedom throughout their working lives and through retirement.

About the study

Our second-annual research study offers the single most comprehensive look at the financial well-being of today’s union members — and provides insights from Taft-Hartley plan sponsors in how their organizations are contributing to the future financial security of unionized American workers. The findings are based on the following quantitative and qualitative data:

1. Empower’s Taft-Hartley defined contribution (DC) recordkeeping platform
The study tabulated results from analyzing roughly 250 Taft-Hartley DC plans, nearly 920,000 members with account balances, and more than $84 billion in assets under administration. 

2. Interviews with trustees and representatives
Empower interviewed representatives of 11 major unions and related associations to better understand the challenges faced by union members and how leaders are evolving their DC offerings to meet the growing demand for wider benefits. As part of these interviews, polling was conducted to probe information about members’ financial goals and needs.

64%

of respondents think the majority of their members do not believe their pensions will be enough to meet their retirement income needs

 

“Employees who are Teamster members typically have a defined benefit (DB) plan for retirement security but can also benefit from having access to a DC plan for additional savings” 

Hemant Berry, Benefits Director, International Brotherhood of Teamsters

Key trends from the study

Who can contribute?

  • Most plans offer employer contributions, but only about 40% allow for member contributions. 47% of participants (in plans allowing contributions) contributed from July 2023 to June 2024.

What’s the average account balance?

  • $92K, a 10% increase over last year. There are 7.1K millionaires in the Empower Taft-Hartley database, an increase of ~40% over last year (~5K). While nonengaged members (that is, those who have not used the mobile app or accessed the website in the previous 12 months) have an average account balance of $59,000, engaged members have $160,000.

What financial topics do members need help with?

  • 70% of our survey respondents identified overall financial planning as the topic their members needed the most help with, followed by retirement planning.

Five key ways to help improve union members’ future financial security

  1. Explore options to modernize your benefits program
  2. Look for innovative communications and education strategies
  3. Anticipate the changing needs of many of the trades
  4. Meet members where they are
  5. Consider broadening offerings beyond retirement

 

Testimonials may not be representative of the experience of other individuals and are not a guarantee of future performance or success.

Point-in-time advice is provided by an Empower representative registered with Empower Financial Services, Inc. at no additional cost to account owners. There is no guarantee provided by any party that use of the advice will result in a profit. 

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice.

Online advice and the managed account service are part of the Empower Advisory Services suite of services offered by Empower Advisory Group, LLC, a registered investment adviser. Past performance is not indicative of future returns. You may lose money.

The research, views, and opinions contained in these materials are intended to be educational, may not be suitable for all investors, and are not tax, legal, accounting, or investment advice.

“EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. 

©2024 Empower Annuity Insurance Company of America. All rights reserved. WSA-WCWB-WF-3708235-1024 RO3964393-1124

Get financially happy.

Put your money to work for life and play.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.

Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.