Financial Wellness: A Better Future for Workers & Employers
Financial Wellness: A Better Future for Workers & Employers
According to a 2021 study by John Hancock, financial stress and the recent impact of COVID have had a substantial impact on well-being. The study indicated that 72% of workers have experienced moderate to extreme stress in the last six months, and 89% feel it’s important for employers to offer a financial wellness program.
In the high-priced Bay Area, it can be even more challenging to manage personal debt, or save for a home, emergencies or retirement. Additionally, financial stress was amplified during the pandemic, ultimately impacting not only employees, but also the employers’ bottom line through decreased productivity and absenteeism.
The good news? Options are available for Local 104 apprentices and journeyworkers. The Sheet Metal Workers’ Local 104 Northern California Supplemental Pension Plan is a trust overseen by labor and management trustees. As of the end of 2022, there were 9,058 active and retired participants with accounts in the Supplemental Pension Plan. In District 1, participants can contribute between $1-12.50 per hour to the plan, in addition to the mandatory profit-sharing contribution.
For more than a decade, Mammini Company, the plan’s investment consulting firm, has offered virtual and face-to-face educational workshops to assist participants in achieving their financial goals. During 2021 and 2022, several hundred participants attended nine workshops and discussed the financial options available to them through the Supplemental Pension Plan. One of the most popular programs is the pre-retirement workshop, designed for participants (and their spouses) within 10 years of retirement.
Starting in June, second-year apprentices will receive in-class instruction on financial wellness and Supplemental Pension Plan options. According to Scott Wernecke of Mammini Company, younger participants stand to gain important knowledge that can set them up for future success. For example, learning the benefits of early saving and the impact of compound interest on your Supplemental Pension accounts versus spending those same funds on weekly coffee expenditures is eye-opening for many.
Mammini Company is scheduled to provide 10 more programs in 2023. More information will be shared in the second quarter this year.
In addition to leveraging programs for union employees, Bay Area SMACNA employers have worked with associate members Union Retirement Solutions, CliftonLarsonAllen & DFG Advisors to provide both personal and organizational financial guidance.