Balances and engagement rates among the
highest in public sector
Transit workers hold unique roles that
ultimately drive better plan performance
Workers in the nation’s public transit systems tend to save at
better rates and engage with their retirement plans more frequently
than other public sector workers.*
Empower also announced today that several public transportation
clients have renewed their relationship with the retirement
services provider while they welcomed a new California-based
transportation authority to their expansive roster of government
clients.
The new data shows that when it comes to retirement savings
plans, transportation workers in the public sector tend to
outperform other public sector segments.**
- Transportation employees’ average account balance is more than
15% greater than the broader government employee base.
- 66% of transportation employees engage with their retirement
plan versus 53% of all government employees.
- Half of transportation employees are Gen Xers, individuals aged
42-59.
“Employees in the U.S. transportation industry work around the
clock to help drive the quality of life that communities depend on.
It is a critically important sector and those who work within it
are underrecognized for their service to keeping our local
economies moving,” said Rich Linton, president and chief operating
officer at Empower.
Linton noted that Empower provides services to reflect plan
design, administrative processes, security protocols, technology
enhancements and communications strategies to align with their
clients and participants’ needs.
“Transportation workers are literally always on the move and
because of that we believe our mobile phone app and extended
contact center hours are essential for this segment,” said Dan
Morrison, executive vice president and head of government and
Taft-Hartley markets at Empower.
Morrison indicated that like most public employees,
transportation workers seek out help preparing their finances for
retirement and Empower has put a financial advice offering as a
central feature in every public plan.
“We believe it’s a critical component to keep public workers on
the right track for retirement,” he said.
The nation’s second largest retirement provider1 has renewed
mandates across the country with New Jersey Transit, Chicago
Transit Authority, Southeastern Pennsylvania Transportation
Authority and METRO Transit Authority of Harris County.
These recommitments encompass approximately 50,000 transit
authority plan participants who will continue to receive their
financial and retirement benefits through their employer-sponsored
retirement plans delivered by Empower.
Santa Clara Valley Transportation Authority (VTA) based
out of San Jose, Calif., and Empower recently began a new
relationship in September 2023. VTA is an independent special
district that provides sustainable, accessible, community-focused
transportation options to the Silicon Valley. The Authority’s
457(b) plan serves the needs of approximately 2,750
participants.
“We now support nearly 1,200 transportation organizations across
the country and are actively engaging with other districts to
continue our growth and provide these essential workers with
tailored solutions and advice to help them achieve retirement
success,” said Morrison. “We value the trust these clients have
with Empower and our commitment to them is always our top
priority.”
Empower serves state-level plans for 29 of 50 states and in
total supports the retirement needs of more than 4 million public
workers exceeding more than $226 billion in assets across Empower’s
government business.
Empower is one of the largest providers of government 457
retirement plans in the country, serving entities across states,
cities, counties, municipalities, associates, territories and
special districts (such as transit and utility), as well as police
and fire departments.
ABOUT EMPOWER
Recognized as the second-largest retirement services provider in
the U.S.1 by total participants, Empower administers approximately
$1.5 trillion in assets for more than 18.5 million investors2
through the provision of retirement plans, advice, wealth
management and investments. Connect with us on empower.com,
Facebook, X, LinkedIn, TikTok and Instagram.
1 Pensions & Investments DC Recordkeeper Survey (2023).
Ranking measured by total number of participants as of September
2022.
2 As of March 31, 2024. Assets under Administration (AUA) refers
to the assets administered by Empower. AUA does not reflect the
financial stability or strength of a company.
*Empower’s 2024 Government Research – Empowering America’s
Financial Journey
**Analysis of 1.9 million active defined contribution
participant accounts with balances greater than $0 from state and
local governments with Empower as the recordkeeper as of
12/31/23.
Securities, when presented, are offered and/or distributed by
Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an
affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and
registered investment adviser Empower Advisory Group, LLC. This
material is for informational purposes only and is not intended to
provide investment, legal or tax recommendations or advice.
Empower refers to the products and services offered by Empower
Annuity Insurance Company of America and its subsidiaries.
“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. WF-3410944-0624 RO-3625363-0624
Learn more:
To learn more about how we’re empowering plan sponsors and their
participants to be more engaged in their retirement plans than ever
before, call us at 800-719-9914.
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version on businesswire.com: https://www.businesswire.com/news/home/20240626917312/en/
Stephen Gawlik - Stephen.Gawlik@empower.com Mandy Cassano -
Mandy.Cassano@empower.com