WASHINGTON - For its part, Campus Federal Credit Union has beenmaking it easier to save for retirement through a matchingarrangement that combines a 6% contribution on its end with a 6%contribution from employees for a total of 12%. It's the least theBaton Rouge, La.-based $319 million credit union can do as itcontinues to emphasize the fervor that many will have to take on tosave for retirement. So it seemed fitting that the CU'spresident/CEO, John Milazzo, was tapped to serve as one of 200delegates at this year's National Summit on Retirement SavingsMarch 1-2. While there, he along with the others broke out intogroups to come up with realistic and specific goals consumers canuse to save for retirement. The groups that appear to need the mosthelp were targeted: new labor market entrants, low-income wageearners, small business employers and their employees, and workersnearing retirement. With savings rates at an all-time low, Milazzosaid it is important to remember that low-income workers, the grouphe was charged with assisting, are just trying to get by everyday,so retirement is not high on the priority list. "A lot oflow-income workers do not have discretionary income to put intoretirement," said Milazzo, who was at the summit representing NAFCUin his vice chair role. "Many of them are single, working parentswith children. They have other immediate priorities that overshadowsaving for retirement." At the same time, the future of SocialSecurity and the amount of money the federal government has to comeup with for the program paints a pretty bleak picture, Milazzosaid. If nothing changes by 2030, 60% of the nation's budget willbe assigned to Social Security benefits leaving 40% to splitbetween defense, education, infrastructure and roads, he added. "Itmight mean people will have to work longer because benefits mightbe slashed," Milazzo said. "One of the things we became aware of(at the Summit) is the greater role persons must take to plan fortheir retirement." Indeed, Secretary of Labor Elaine Chao told thesummit delegates "the first baby boomers are turning 60 this yearand that ought to cause several grey hairs among those concernedabout retirement security in the decades to come" but retirementplanning still takes "time, dedication and careful planning." Thedelegates assigned to assist low-income workers came up with sevenstrategies to help them save for retirement. One effort would beestablishing a child savings program to encourage family members tobegin saving early for children to help fund their educational,housing and retirement needs. Tax incentives and grants mighthasten acceptance of these programs, Milazzo said. The creation ofjoint retirement accounts for married couples would be able toprotect women in case of a divorce. Two other retirement savingstrategies involve employers. A Universal Employer RetirementSavings Program would encourage them through tax credits andincentives to offer retirement plans for their employees. Theseplans should be portable and used by multiple employers to helpthose low-income workers who often work multiple jobs, Milazzosaid. A more simplified savings program for employers and employeesmight also be needed, the delegates suggested. If Social Securityremains, benefactors could receive annual statements that showcurrent and projected values of benefits and project the shortfallbetween benefits and what would be necessary to sustain an adequatelifestyle. Milazzo said the statements might help people "recognizethe shortfall and do something proactive to deal with it." Thedelegates also suggested retirement education awareness campaigns.For instance, a National Retirement Savings Day, supported by thepresident, and implemented in local communities to highlight theimportance of taking personal responsibility for retirementplanning. Ongoing educational programs aimed at financial literacyat schools and in the workplace that emphasize real reasons to saveand the consequences of not saving while addressing cultural andbehavioral obstacles to saving. "People have to take personalresponsibility, but we need to look at what people canrealistically do to save," Milazzo said. This is the third year thesummit has taken place. The Department of Labor will take thesuggestions the delegates compiled for each of the groups that arestruggling to save. Sometime this year, the agency will release awhite paper on the suggestions with the hope that some of them willactually be implemented. The summit was also a good opportunity toeducate many delegates on credit unions and what they're doing tohelp with retirement saving, Milazzo said. CUNA President/CEO DanMica also attended as a delegate. "The table that I sat at, notmany people were familiar with credit unions. It felt great thatcredit unions were represented," he said. -

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