How Hybrid Retirement Plan Members Can Step Into Bigger Savings

February 2024
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How much money people need when they retire depends on a lot of factors, such as health and living expenses and their retirement goals. Most financial planning experts recommend that workers set at least 80% of their current earnings as a retirement income target.

Saving early, and making it automatic, can go a long way toward meeting that goal.

SmartStep Puts Hybrid Plan Members on Path to Saving More

The SmartStep feature helps hybrid plan members save more for retirement with automatic, annual increases to their voluntary contributions.

Voluntary contributions allow hybrid plan members to accumulate additional savings on a pre-tax basis, increase savings through the employer match and work toward higher income replacement during retirement. Members have access to a variety of low-cost investment options and the opportunity to generate compounded earnings.

How SmartStep works: The member chooses an annual increase amount and which month the increase will occur: January, April, July or October. The member's voluntary contribution will increase each year until it reaches the maximum 4%.

Getting started: Members should log in to Account Access and select their Hybrid 457 plan account. From the Contributions page, the member will enter an amount for SmartStep. Members also can use the Hybrid Member Paycheck Calculator to see the impact of contributions and other deductions on their paychecks.