Press Release

NAGDCA Celebrates 15 Years of Promoting Retirement Security

Issued by NAGDCA [National Association of Government Defined Contribution Administrators]

Sept. 21, 2021

Lexington, KY, September 21, 2021—This October marks 15 years since the first bipartisan resolution was passed in the U.S. Senate supporting NAGDCA’s efforts to champion retirement security with its creation of National Retirement Security Week. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.

Originally conceived by NAGDCA as a week to encourage retirement saving among government workers, NAGDCA’s effort has grown into National Retirement Security Month, a national effort to inspire American employees to save adequately for a secure retirement observed throughout the retirement industry during the month of October. It has received bipartisan Senate resolution since its conception in 2006.

The recent spate of proposed legislation aimed at making it easier for Americans to save more effectively for retirement attests both to growing concern about the insufficiency of Americans’ retirement savings and NAGDCA’s vision.

According to the Federal Reserve Survey of Consumer Finances, households have an average retirement account balance of $255,200; significantly less than experts recommend is necessary to last an entire retirement, which could span 30 years or more. A recent Government Accountability Office (GAO) report reveals that 48% of Americans over 55 years old had no savings in a 401(k)-style plan or individual retirement account—though, the report notes, some of those people did have a pension. Additionally, according to the GAO, 29% of older Americans have neither a pension nor a defined contribution plan.

In a recent statement, House Ways and Means Committee Chair Representative Richard Neal (D-MA), who, with Ranking Member Kevin Brady (R-TX), reintroduced the Securing a Strong Retirement Act of 2021 to help more Americans successfully save for a secure retirement, stated: “Providing more, and easier, ways to save allows workers to actively plan for their futures and avoid falling into poverty later in life. Boosting Americans’ financial security in retirement supports families and strengthens our economy.”

“We’re thrilled with the attention retirement security is receiving and grateful to the many lawmakers championing legislation aimed at strengthening Americans’ ability to save adequately for retirement,” said NAGDCA Executive Director Matt Petersen. “While not all of the proposed legislation is relevant for public sector plan sponsors, all of it speaks to the critical need for defined contribution retirement plans to more robustly support the retirement savings needs of American employees. Further, it powerfully validates NAGDCA’s original intention in creating National Retirement Security Month, which was to raise awareness of the importance of saving adequately for retirement.

“The continued drumbeat—from industry and lawmakers from both sides of the political aisle—for enhancing defined contribution retirement plans is indeed heartening AND it’s essential that private and public sector plan sponsors, and their record keepers understand that they remain key to engaging employees and their ability to recognize the benefits proposed legislation promises,” Matt concluded.

About NAGDCA

NAGDCA provides education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. National Retirement Security Week, originally conceived by NAGDCA to encourage retirement saving among government workers, has grown into National Retirement Security Month, a national effort to inspire American employees to save adequately for a secure retirement that is observed throughout the retirement industry during the month of October. It has received bipartisan Senate resolution since its conception in 2006. To learn more about NAGDCA, visit https://www.nagdca.org/.

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