Administration November 10, 2014

Detroit’s Bankruptcy Plan Approved

A federal judge last week approved the city of Detroit’s plan to get out of bankruptcy.
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Less than 16 months after Detroit became the largest city in the United States to file for bankruptcy, a federal judge approved a plan erasing $7 billion of debt and promising to spend $1.7 billion to demolish old buildings, improve public safety and upgrade basic services, according to news reports.

Under the plan, retirees covered by the city’s general pension fund will see benefits decrease by 4.5%, while police and fire system retirees will see smaller cuts. The general pension fund is now using an assumed rate of return of 6.75%.

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The state, foundations, philanthropists and the Detroit Institute of Arts funded $816 million that will, in part, help fund Detroit’s pension funds and prevent even deeper cuts to retirees.

The news reports noted that Detroit has emerged from its bankruptcy filing much faster than other public entities.

Products November 10, 2014

Transamerica App Lets Savers See Blind Spots

Augmented reality technology via a mobile application (app) from Transamerica Retirement Solutions can help drive up retirement savings. 
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Plan participants can use the app to enroll in the plan, increase contributions or assess their financial outlook for retirement. The app brings a new level of interactive mobile technology that allows users to view short retirement readiness awareness videos. If Transamerica is their employer’s retirement plan provider, it leads the user to Transamerica’s website, where they can take further action on saving for retirement.

Users can point a smartphone at a printed advertisement, and Augmented Reality by Transamerica (ART) will provide an added digital layer of content, showing users short videos that promote the need to save for retirement. Transamerica is also giving promotional posters to plan sponsor clients that offer the augmented reality experience.

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Studies show more people are using their mobile devices to manage their daily lives, including their retirement accounts, according to Stig Nybo, president of U.S. retirement strategy for Transamerica Retirement Solutions. “Millennials are especially apt to use their smartphone as their primary means of retrieving information,” he says, noting that mobile apps make it convenient for users to get information while it is still top of mind, then let users interact quickly and efficiently.  

Transamerica has a track record in using technology to promote retirement readiness. Last year, the firm introduced the Retirement Outlook Estimator app that allows users to enter information to determine their forecast for reaching individual savings objectives.

The ART app is groundbreaking because it provides an augmented reality experience and then allows the user to take action, Nybo says. “Transamerica is a technology leader,” he says, “and this app allows us to take a fun approach to addressing the serious topic of saving more for retirement.”

The ART app is available via Apple iTunes or Google Play.  More information is available on Transamerica’s website.

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