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The National AFL-CIO Teams Up With Wilmington Trust & BNY Mellon To Expand Retirement Planning Options For Millions Of Americans

Published Thursday, March 25, 2021
by National AFL-CIO News
The National AFL-CIO Teams Up With Wilmington Trust & BNY Mellon To Expand Retirement Planning Options For Millions Of Americans

(NEW YORK CITY) - The National AFL-CIO, the Nation’s largest Federation of Labor Unions, has announced a groundbreaking collaboration with Wilmington Trust, BNY Mellon, PGIM Fixed Income and AFL-CIO ITC Financial to distribute 12 new target date Collective Investment Trust (CIT) Funds, expanding retirement planning options for its 56 Unions and 12.5 million Members.

This product is an important extension of the National AFL-CIO’s suite of branded investment products - bringing the Labor Federation’s values to the defined contribution market. 

“This suite of target date CIT funds is a welcome addition to the lineup of financial products which carry the AFL-CIO name,” National AFL-CIO President Richard Trumka said.

“Defined Benefit Plans remain the bedrock of a secure retirement.  However, the Labor Movement’s philosophy that all Americans are entitled to retire with dignity and financial security dictates that we must also ensure that defined contribution investors’ interests are protected.  This product provides a cost-effective solution that brings this proposition to life.  We are grateful to our partners for sharing our values and making good on that commitment," he said.

The National AFL-CIO target date fund series was developed as a low-cost product for Defined Contribution Plans.

 Offered in five-year increments, the target date solutions provide democratized pricing - a flat fee of 12 basis points for all investors - that will help foster retirement security for Working Americans.

Voting proxies for each fund conform with the National AFL-CIO’s Proxy Voting Guidelines, per an independent proxy voting fiduciary.

Wilmington Trust, a leader in wealth management and corporate and institutional services, will serve as trustee for all 12 funds.

BNY Mellon will provide the glide path and index management for the funds.

PGIM Fixed Income will manage the fixed income component of the products.

And AFL-CIO ITC Financial, LLC, the broker-dealer subsidiary of the AFL-CIO Investment Trust Corporation, will handle distribution. 

“As a trustee with nearly (120) years of experience successfully managing large, complex transactions, Wilmington Trust’s primary goal with this collaboration with the National AFL-CIO is to offer high-quality retirement solutions to millions of American Workers,” Wilmington Trust Executive Vice President Bill Farrell said.

“We’re excited to work with America’s leading Federation of Labor Unions to offer these solutions, and, together, we are confident we can help more U.S. Workers effectively prepare for retirement,” he said. 

Target date funds offer a diversified investment portfolio that evolves from greater equity exposure to greater fixed income exposure throughout the investor’s working life.

More than three-quarters of 401(k) investors use target date funds and they are a central component of retirement savings for many Americans. 

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