The ICMA RC: What Public Sector Employees Must Know

August 22, 2022

A retirement plan is one of the most important financial benefits that public sector employees can receive. Retirement planning is essential to ensure you have money saved to cover living expenses during retirement. Employees who do not plan for retirement may struggle to make ends meet or even face poverty. So it’s essential to make a plan since there’s no such thing as late planning for retirement.

How does the ICMA RC figure into this plan?

What is the ICMA-RC?

firefighters in the street
Photo by Spencer Davis on Unsplash

The ICMA Retirement Corporation or ICMA-RC is a non-profit financial services organization that provides retirement plans and related services to public sector employees, like firefighters, social workers or city planners. ICMA stands for International City Management Association Retirement Corporation.

Established in 1972, ICMA-RC was created through a Ford Foundation grant. It initially provided a portable retirement plan for municipal and city managers. The ICMA-RC serves public sector government across the country, and participants include public employees from different levels of government, including local, state and federal.

MissionSquare Retirement

In March 2021, ICMA-RC announced its new name, MissionSquare Retirement. The new brand and name reinforce the company’s history, community focus and deep expertise. It also strengthens its vision for its future.

The ICMA-RC has always been dedicated to helping people who serve their communities through retirement security. The new name emphasizes the company’s mission and highlights its commitment to public servants across the country.

MissionSquare Retirement currently serves over 1.5 million participants with about 9,800 retirement plans throughout the country.

Why is ICMA Changing its Name?

The past year saw ICMA-RC creating a new identity that honors its history while reflecting its vision for the future. The organization recognized the opportunity to increase brand recognition through industry and client research. The change also highlighted its commitment to serving public servants.

MissionSquare Retirement expands the organization’s focus on its mission of serving people who serve their communities. Despite its name change, it continues to be a non-profit organization that is mission-driven and focused on providing retirement plans, investments, advice and education.

Retirement Planning

two retirees sitting by a lake
Photo by Max Harlynking on Unsplash

MissionSquare Retirement offers a host of retirement products and services to meet the needs of public servants. These include retirement savings plans, investment products and educational tools and services.

The organization’s educational resources help employees learn about retirement planning. These resources include webinars, retirement planning calculators and articles. It also has educational videos to ensure employees understand its retirement products’ benefits.

The organization’s retirement planning resources are helpful since they give employees the information they need to make informed decisions about their retirement. The organization’s retirement products and services provide employees opportunities to save for retirement and achieve financial goals.

Tax-Advantaged Plans

The organization also offers tax-advantaged plans to help employees prepare for their future. Its tax-advantaged plans include 457 Deferred Compensation, 401(a) Money Purchase, 401(k) Retirement Savings and 403(b) Defined Contribution Plans.

MissionSquare Retirement also offers IRAs, which allow workers to save for retirement with tax advantages and flexibility. The organization offers both Roth and traditional IRAs to help address their future financial needs.

Investment Products

MissionSquare Retirement offers various investment options to help clients build a diversified investment portfolio. These options include stable value funds, target-date, target-risk funds and guaranteed lifetime income funds.

The organization’s investment products are helpful since they allow employees to reach their retirement goals. The organization offers a wide range of investment options to meet the needs of its clients.

Retirement Security

One significant benefit employees can get from a 457 plan is tax-deferred savings. This helps employees save for retirement and achieve their financial goals. The organization’s retirement security products are designed to protect employee assets and income in retirement. These products include life insurance, long-term care insurance and annuities.

Things to Consider When Retiring

You must consider a few things when developing a retirement plan. Employees should start by estimating how much money they will need to cover their basic living expenses in retirement. This includes costs, such as housing, food, transportation and healthcare. Employees should also account for debts, such as mortgage or credit card debt.

It would be best if you considered your lifestyle when you retire. Do you plan to travel? Do you want to downsize your home? It would help if you also thought about whether you will have any sources of income when you retire, such as a pension or social security. You can also add to your income by looking for good business ideas for retirees.

Once you have an idea of your expenses, you can start to think about how much income you will need to generate from your retirement savings. Several factors can impact this, such as the age at which you plan to retire, your expected lifespan, inflation, and the rate of return you expect on your investments. Employees should also consider whether they want to leave a legacy or provide financial support to family members.

The ICMA-RC has always been a non-profit organization that is mission-driven and focused on providing retirement plans, investments, advice and education. Despite its name change, it continues with its mission of serving public servants.

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