With union membership on the rise, more organizations utilizing Taft-Hartley defined contribution plans are increasing their commitment to financial wellness, savings education and digital technology to help in their retirement planning process, according to recent research cited by Empower.
The research from Economist Impact found 81% of union representatives and advocates expect union membership to increase in light of the experience workers had during the pandemic. And to further help union workers, approximately 60% of executives from organizations with unionized members stated that their organization had increased its investment in financial wellness education and similar resources.
In addition, Taft-Hartley plan members tend to increasingly embrace personalized digital technology tools—such as mobile phones and tablets—to help assist them with retirement planning.
“Labor Day is a time to celebrate American workers and recognize all that unions have done and continue to achieve for our country,” said Rich Linton, president and chief operating officer, Empower. “We are proud to serve these clients and help workers achieve the retirement security they deserve.”
Empower is seeing tremendous growth and retention success with Taft-Hartley clients—particularly amid the recent acquisitions of Prudential Retirement and MassMutual. The combination of the two acquired organizations joins 65 years of combined experience and serves 931,000 plan members, more than 350 clients and more than $79 billion in assets across more than 25 trades.
As of July 2022, Empower said in a Sept. 1 statement it has maintained a retention rate of 100% with recent Taft-Hartley plans such as International Union of Operating Engineers Local 825 Annuity Plan, Steamfitters and Plumbers Local Union 464, UA Local 85 Plumbers, Steamfitters & HVACR Service Technicians, and IATSE Local 11.
Empower has a team of more than 50 retirement professionals dedicated to Taft-Hartley plans who can help clients navigate the nuances of these plans.
Taft-Hartley plans (multiemployer plans) are collectively bargained by a labor union and more than one employer in a specific industry. These plans typically cover union members who work in industries where it is common to move from employer to employer and includes provisions where participants receive specific contributions based on work with multiple employers, as long as each employer is part of the collective bargaining agreement requiring contributions.
Empower provides a plan member’s retirement planning experience through multiple channels, including a new website as well as mobile apps for use on phones and tablets. A member’s projected income is the focal point of the website experience, allowing each member to quickly view the percentage of their estimated income they are on track to replace in retirement. Empower’s website gives users a personalized view of their estimated monthly retirement income and shows where they stand, where they may need to go and what steps to take next.
“Empower has continually enhanced its technology platforms and digital solutions to help meet the needs of union workers,” said Rick Johnson, Business Manager of Heat & Frost Insulators Local 135 and Trustee for the Western States Insulators & Allied Workers’ Individual Account Plan. “Having the ability to interact and engage with a custom app or a mobile device wherever they are, whenever they want, is key to improving their financial health and helping them feel more confident about achieving their goals.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.