San Joaquin County approves Nationwide's Retirement Income Builder plan for employees

The San Joaquin County Deferred Compensation Advisory Committee convened on February 27, 2025, to discuss significant updates regarding retirement investment options for county employees. A key focus of the meeting was the introduction of the Retirement Income Builder, a new investment product designed to provide a stable income stream for retirees.

The Retirement Income Builder, which has been available for two years, utilizes passively managed State Street index funds. This product is particularly appealing due to its lower costs and reduced volatility, as it incorporates a fixed index annuity instead of traditional fixed income investments. This structure aims to protect participants from market fluctuations, especially during retirement planning.

Committee members expressed interest in the product's performance and its implications for employees nearing retirement. The discussion highlighted that participants could choose to allocate a portion of their retirement savings into this product while maintaining flexibility with the remainder of their investments. This feature is especially beneficial for employees in public safety roles who may retire earlier than the typical retirement age.

Concerns were raised regarding the portability of the Retirement Income Builder if the county were to change record keepers. However, representatives from Nationwide assured the committee that they would facilitate transitions to ensure participants could retain their investment options.

The committee unanimously voted to adopt the Retirement Income Builder for San Joaquin County, recognizing its potential to enhance retirement planning for employees, particularly those with limited access to Social Security benefits. The decision reflects a commitment to providing diverse and secure retirement options for county workers.

In conclusion, the meeting underscored the importance of adapting retirement plans to meet the evolving needs of employees, ensuring they have reliable income sources as they transition into retirement. The Retirement Income Builder is expected to play a crucial role in this strategy, offering both security and flexibility for participants.