Attention ASEA GGU Members with a PERS TIER IV Retirement Account:
Some troubling news has come out of a recent Alaska Retirement Management (ARM) Board meeting. This is a developing story and may impact participants of PERS TIER IV Defined Contribution (DC) plans. In short, if you are enrolled in Empower’s managed account service My Total Retirement, you may be experiencing substandard returns on your retirement investment.
Here is a summary of the facts:
- The Alaska Department of Administration has a contract with Empower retirement benefit services
- Empower markets an investment product entitled My Total Retirement which is a “Managed Account Service” powered by Morningstar Investment Management, LLC
- A recent review of these plans, conducted by the Callan Institute, showed lower returns despite higher fees for a significant number of participants.
- The ARM Board passed a resolution unanimously, featuring two key points:
- They expect Managed Accounts to “continue to have lower investment performance due to the combined effect of its asset allocation, higher fees, and low participant engagement.”
- They “recommend that the Department of Administration close Managed Accounts to all new participants in any Alaska retirement plan.”
***If you are a PERS TIER IV employee or have an SBS account, we encourage you to log in to your Empower retirement account and determine if you are participating in My Total Retirement.***
***To determine if you are enrolled in My Total Retirement***
- Log into your retirement dashboard at https://akdrb.empower-retirement.com/participant/#/login?accu=AlaskaWR.
- Check all of your retirement accounts held by Empower, especially ones created between 2006 and 2010 when public employees were auto enrolled in My Total Retirement.
- Within each account, download the latest monthly statements.
- Go to the second page of the statement. If you are enrolled in My Total Retirement you should see this notice:
ASEA cannot offer financial advice but simply want to make you aware of the ARM Board’s recent actions. We encourage all of our members to consult with a trusted financial advisor outside of Empower, to help you make the decision that is best for you and your future.
- If you are interested in looking through the Oct 12, 2023 ARM Board meeting packet, click here.
- You can also read more about this in the Alaska Beacon or Alaska Public Media
ASEA is actively engaged in serving the interests of employees it represents through collective bargaining, contract enforcement, and direct advocacy. If you have not yet elected to become a member of your union, please take this moment to sign up for ASEA membership so that your union can continue to work effectively on your behalf.