Importance of Supplemental Retirement Savings Plans for City and County Employees

Source: Robert L. Clark, Melinda Sandler Morrill, Matthew Anderson, and Aditi Pathak, Center for State and Local Government Excellence, January 2015

From the summary:
This brief is the final in a three-part series that analyzes employee participation in primary and supplemental retirement plans, retiree health care benefits, and Social Security in 20 large cities and counties across the country.

Key Findings:
– All 20 local government employers in the study offer their employees the opportunity to contribute to a supplemental retirement savings plan. The most frequently offered plan is a 457 plan.
– The characteristics of the primary retirement benefits are associated with the participation rates in supplemental plans.
– Workers covered by less generous primary pensions are more likely to contribute to voluntary supplemental retirement plans.
– City or county governments that give matching contributions, have multiple plans, and allow online enrollment also have higher participation rates in supplemental plans.
– Supplemental retirement savings plans provide local government workers with shorter career tenures with an important opportunity to build retirement wealth.