Taft-Hartley defined contribution plans
Helping members pursue a more secure retirement | Second edition
Taft-Hartley defined contribution plans
Helping members pursue a more secure retirement | Second edition
With union members playing such vital roles in helping our nation run smoothly, it’s vital that we help them pursue financial freedom throughout their working lives and through retirement.
About the study
Our second-annual research study offers the single most comprehensive look at the financial well-being of today’s union members — and provides insights from Taft-Hartley plan sponsors in how their organizations are contributing to the future financial security of unionized American workers. The findings are based on the following quantitative and qualitative data:
1. Empower’s Taft-Hartley defined contribution (DC) recordkeeping platform
The study tabulated results from analyzing roughly 250 Taft-Hartley DC plans, nearly 920,000 members with account balances, and more than $84 billion in assets under administration.
2. Interviews with trustees and representatives
Empower interviewed representatives of 11 major unions and related associations to better understand the challenges faced by union members and how leaders are evolving their DC offerings to meet the growing demand for wider benefits. As part of these interviews, polling was conducted to probe information about members’ financial goals and needs.
64% | of respondents think the majority of their members do not believe their pensions will be enough to meet their retirement income needs |
“Employees who are Teamster members typically have a defined benefit (DB) plan for retirement security but can also benefit from having access to a DC plan for additional savings”
– Hemant Berry, Benefits Director, International Brotherhood of Teamsters
Key trends from the study
Who can contribute?
- Most plans offer employer contributions, but only about 40% allow for member contributions. 47% of participants (in plans allowing contributions) contributed from July 2023 to June 2024.
What’s the average account balance?
- $92K, a 10% increase over last year. There are 7.1K millionaires in the Empower Taft-Hartley database, an increase of ~40% over last year (~5K). While nonengaged members (that is, those who have not used the mobile app or accessed the website in the previous 12 months) have an average account balance of $59,000, engaged members have $160,000.
What financial topics do members need help with?
- 70% of our survey respondents identified overall financial planning as the topic their members needed the most help with, followed by retirement planning.
Five key ways to help improve union members’ future financial security
- Explore options to modernize your benefits program
- Look for innovative communications and education strategies
- Anticipate the changing needs of many of the trades
- Meet members where they are
- Consider broadening offerings beyond retirement
Testimonials may not be representative of the experience of other individuals and are not a guarantee of future performance or success.
Point-in-time advice is provided by an Empower representative registered with Empower Financial Services, Inc. at no additional cost to account owners. There is no guarantee provided by any party that use of the advice will result in a profit.
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