Plan Sponsor News

Each year, Mutual of America Foundation celebrates six nonprofit organizations with the Community Partnership Award, recognizing their exceptional achievements in building stronger communities. Each exemplifies the power of collaboration with public, private and social sector leaders. Through their combined efforts, they’re a model for collective action that fosters positive change.

The winner of the 2023 Thomas J. Moran Award—Catalyst Kitchens—is a nationwide network empowering individuals to escape poverty through comprehensive food service job training and social enterprise programs. As the recipient of this national award, Catalyst Kitchens received $100,000 from the Foundation and a documentary video about the program. Watch the video to learn more.

The 2023 Frances R. Hesselbein Award recipient was the LUCA Scholars Program (Latino U College Access) in White Plains, New York. LUCA provides access to opportunities for first-generation Latino college-age students to help them meet their potential. As the winner, the program received $75,000 from the Foundation.

Four other organizations were named Honorable Mention Award recipients, each receiving $50,000. They are:

ALSC’s Community Justice Worker Project

Auberle’s Employment Institute

Open Door Mission Free Health and Healing Clinic

Transforming Lives Through Housing & Economic Opportunity

“The 2023 Community Partnership Award–winning programs, which were selected from more than 800 applicants, offer creative and effective solutions that address persistent social, emotional and physical issues affecting individuals and families in their communities across the country,” said Lisa M. Loughry, Mutual of America Foundation Chair.

Just like its many nonprofit clients, Mutual of America is dedicated to making a real difference. This year’s application deadline for the Mutual of America Foundation Community Partnership Award is July 1, 2024.

Mutual of America is a proud sponsor of the newly released 2024 EBRI Retirement Confidence Survey. Among the highlights of this year’s survey, nearly seven in 10 workers are confident that they’ll have enough money to live comfortably through retirement, though just two in 10 are very confident.¹

What’s more, 84% of workers are counting on their workplace retirement savings plan to fund their post-employment years, with 58% saying that it will be a major source.² However, 22% of the workers who have a defined contribution plan, such as a 401(k) or 403(b) plan, don’t feel confident that they’ll have enough to retire,³ with a lack of savings and inflation being top reasons for that concern.⁴

How can you help employees build financial security?

As a plan sponsor, you have strategic plan options available to help your employees start saving for the future, including auto enrollment arrangements. Additionally, auto escalation features can help plan participants start saving a little more year over year, if they aren’t already.

In fact, starting next year due to the SECURE 2.0 Act, most new 401(k) and 403(b) plans will be required to automatically enroll employees. Businesses less than three years old, small businesses with 10 or fewer employees and non-ERISA church and government plans are exempt. Employees must be automatically enrolled at a default contribution rate between 3% and 10% of their salary, with annual automatic increases of 1% up to at least 10% but not more than 15%.

Mutual of America offers a wide range of plan sponsor resources and financial education for employees on topics such as budgeting, debt management and the importance of saving for retirement.

Contact your Mutual of America representative today to learn more about how we can help your employees build a more secure financial future.

¹2024 EBRI Retirement Confidence Survey, Funders Report. Page 16.
²2024 EBRI Retirement Confidence Survey, Funders Report. Page 79.
³2024 EBRI Retirement Confidence Survey, Funders Report. Page 20.
⁴2024 EBRI Retirement Confidence Survey, Funders Report. Page 21.

Educating employees about consolidating retirement plan assets could help them take a more active role in their financial future. In fact, a recent survey found that 21% of workers say that one-on-one assistance in consolidating retirement savings would be a valuable resource.¹

By consolidating retirement savings from previous jobs into your retirement plan, your participants may find it easier to monitor their progress toward their retirement financial goals, keep their asset allocation on track and make adjustments as necessary along the way.

Additional potential benefits include:

1. Simplified management: Consolidation eliminates the hassle of their having to juggle multiple statements and logins and helps to streamline your recordkeeping.

2. Reduced fees: By consolidating, your participants may save money on account management and maintenance charges, allowing more of their hard-earned savings to grow for retirement.

3. Maximized savings potential: For employees planning to work past age 72, consolidating into their workplace retirement plan can offer tax advantages. Postponing required minimum distributions (RMDs)² allows their savings to grow and compound on a tax-deferred basis until they decide to finally stop working.³

Your Mutual of America Participant Account Specialist is happy to help employees who want to consolidate their assets. We also have a dedicated enrollment team standing by to help at 844.605.5513. If you would like tools to distribute, please let us know.

¹EBRI. 2024 Retirement Confidence Survey, Funders Report. Page 73.
²IRS.gov. Retirement Plan and IRA Required Minimum Distribution FAQs. https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs.
³Generally, withdrawals are taxed as ordinary income and may be subject to a 10% penalty if taken before age 59½. Employees should consult their tax advisor for specific situations.