Advising Today's DC Plans

Taft-Hartley Plan Growth Driven By Higher Optimism, Tech Tools

Most union-execs see increased investment in financial wellness education

GREENWOOD VILLAGE, Colo.–(BUSINESS WIRE)–Workers saving for retirement through Taft-Hartley defined contribution plans enjoy higher levels of optimism about the future, feel greater commitment from their organizations and tend to make heightened use of digital tools to help in their retirement planning process.

According to recent research, 81 percent 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 percent 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.”

Growth And Retention Success

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.***

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.

“When IBEW Local 490 recently transitioned to Empower, we wanted to make it as easy and seamless as possible for our members,” said Jim Lukeman, Fund Administrator, IBEW Local 490. “Empower immediately scheduled live education sessions so members could learn how to access their new accounts and ask questions. Their relationship manager attends each of our trustee meetings, and Empower’s service team was so responsive with fielding questions and providing educational resources — it went above and beyond our expectations.”

 

 

 

About Empower
Headquartered in metro Denver, Empower administers approximately $1.2 trillion in assets1 for more than 17 million retirement plan participants[1] and is the nation’s second-largest retirement plan recordkeeper by total participants.[2] Empower serves all segments of the employer-sponsored retirement plan market: government 457 plans; Taft-Hartley plans; small, mid-size and large corporate 401(k) clients; nonprofit 403 (b) entities; private-label recordkeeping clients; and IRA customers. Personal Capital, a subsidiary of Empower, is an industry-leading hybrid wealth manager. For more information please visit empower.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.
[1] As of June 30, 2022. Information refers to the business of Empower Annuity Insurance Company of America and its subsidiaries, including Empower Life & Annuity Insurance Company of New York and Empower Financial Services, Inc. EAIC’s consolidated total assets under administration (AUA) were $1,289.3B. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a company. EAIC’s statutory assets total $77.2B and liabilities total $74.3B. ELAINY statutory assets total $6.9B and liabilities total $6.7B.
[2] Pensions & Investments 2020 Defined Contribution Survey Ranking as of April 2021.
* Economist Impact, 2021
** Economist Impact, 2021
*** As of April 2022.

 

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