Washington, D.C., Dec. 23, 2022 (GLOBE NEWSWIRE) -- Washington, D.C., December 23, 2022 – Passage of retirement legislation by the U.S. Congress today is an important step in strengthening the financial security of the nation’s public service workforce. MissionSquare Retirement applauds the commitment of federal lawmakers to pass the SECURE 2.0 Act of 2022 provisions included in the 2023 omnibus appropriations bill.
More specifically, MissionSquare Retirement has advocated for:
- Removal of administrative barriers for 457(b) plans. By streamlining contribution requirements for public service government employees in 457(b) plans, the legislation now provides workers with much-needed flexibility when making retirement plan contribution decisions. In addition, 2.0 makes it easier for public safety workers to cover their medical care by modernizing withdrawal processes from these governmental plans.
- Collective Investment Trusts (CITs) as lower cost investment options in 403(b) plans used by public schools, colleges, universities, and other tax-exempt organizations. SECURE 2.0 takes the needed first step toward providing 403(b) plans overall lower cost options by allowing the use of CITS or group trusts. Going forward, Congress will need to provide securities law changes in order for these plans to be able to take full advantage of these cost-savings investment options.
- Aiding savings for low and middle income workers. Included in SECURE 2.0 is a Saver’s Match program that would incentivize retirement savings by providing a 50% matching contribution on up to $2,000 in retirement savings annually for low and middle income Americans.
“Financial security is a growing concern for public service employees,” said Lynne Ford, CEO and President of MissionSquare Retirement. “We applaud federal lawmakers for enacting important changes that are a step in the right direction toward strengthening retirement savings for our nation’s public workers.”
“Often overlooked is the fact that retirement benefits are a critical workforce recruitment and retention tool for government employers. This Congressional action can achieve the dual goals of fortifying workers’ retirement security and helping state and local policymakers facing workforce challenges,” Ford said.
In recent years, there has been an increased focus on the financial wellbeing of state and local government employees. Amid the COVID-19 pandemic and Great Resignation, more than half of state and local workers say they are inclined to leave their jobs, driven largely by a need for better pay and benefits. Moreover, some 44% of state and local workers reported that they and their family had been negatively impacted financially by the pandemic. When it comes to retirement, only 20% of state and local workers are extremely or very confident that their pension will cover all of their living expenses, and only 41% of public sector human resources professionals feel their employees are financially prepared for retirement.
MissionSquare Retirement also offers a full range of financial educational resources including:
About MissionSquare Retirement
MissionSquare Retirement is dedicated to guiding those who serve our communities toward a secure and confident financial future. Founded in 1972, MissionSquare Retirement is a mission-based, nonstock, nonprofit, financial services company with approximately $69 billion in assets under management and administration.* The company has helped more than three million people working in public service retire confidently and is focused on delivering retirement plans, investment options, and personalized guidance to the public service sector.
For more information, visit www.missionsq.org or follow the company on Facebook, LinkedIn, and Twitter.
*As of November 30, 2022. Includes 457, 401, 403(b), Retirement Health Savings (RHS) plans, Employer Investment Program (EIP) plans, affiliated IRAs, and investment-only assets. Includes assets under administration and management by MissionSquare with its subsidiaries.
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