By Allen Jones
TEXPERS, Communications Manager
Getting ready to leave a public sector job for retirement can be a daunting task that usually results in many employees flipping through their plan’s guidebook to find out what forms must be submitted and by when. However, those nearing retirement often have questions beyond what is on the pages of their fund’s Summary Plan Description, and it's prompting some public pension system administrators to develop creative ways to prepare their members for the day they leave the workforce.
Corpus Christi
Each October, the Corpus Christi Firefighters’ Retirement System hosts a pre-retirement seminar for its members. The half-day program is open to all of CCFRS’ active firefighters but focuses on employees who are within five years of retirement.
“We host presenters and speakers to inform our members of what they should be aware of before retiring,” says Gracie Flores, the fund’s administrator. “It’s important that our members are ready for retirement. It is a big transition to move from work to retirement. Our seminars provide them the tools and information they need to make the process as smooth as possible.”
The CCFRS program is an example of what other public pension funds can do to ensure members are ready to enter their golden years. The Corpus Christi fund’s pre-retirement seminar explains the retirement process, lays out the benefits members can expect and addresses post-retirement issues. The workshop outlines the deferred compensation process and even uses role playing to demonstrate what steps members must take before their retirement dates arrive.
“Our Path to Retirement role play is a very popular portion of the seminar,” Flores says. “We have a person taking on the role of a future retiree. I’m there acting as the plan’s administrator, and we have a fire department official. We show our members exactly what they must do to retire, who they must talk to and what the process is like.”
System members learn about documents they will need to file for retirement benefits, deadlines they will need to meet, eligibility requirements, how to calculate the income they will earn during retirement, and when benefits are likely to start after retirement. Flores also demonstrates the fund’s Internet-based membership portal so members know how to log in, what information they can find there and how the software works.
The program doesn’t only focus on pension forms and retirement filing procedures, however. Other topics include such as estate planning, retiree health insurance plans, and Social Security fundamentals.
During last year’s pre-retirement seminar, Melissa Sirus, a Social Security representative, discussed eligibility. Nearly 30 percent of state and municipal employees are not covered by Social Security, according to the National Institute on Retirement Security. Not everyone understands that, Flores says.
Flores tries to offer different topics each year and recruits professionals from the Corpus Christi community to speak to the seminar’s attendees.
“To reduce our liability, I only get speakers who have a relationship with the retirement system,” she says. “For example, CCFRS’ attorney presents the estate planning information.”
To promote the program, Flores sends flyers to system members who are within five years of retirement. She also emails the system’s membership to announce the seminar and promotes the program through board agendas and minutes, which are mailed directly to each fire station within Corpus Christi.
The number of attendees fluctuates each year. Her largest attendance was about 60 people, and she has had as few as 25 people show up. She also arranges to serve lunch to the attendees.
Elvin Bates, a captain with the Corpus Christi Fire Department, is nearing retirement. He has spent more than 40 years with the department and is currently a fire inspector with the department’s fire prevention division. He is a regular attendee of his fund’s annual pre-retirement seminar.
“It’s a fantastic program,” Bates says. “I learn a lot each year.”
He says the program has helped him better understand what steps he must take to leave the fire department with his proper benefits and has provided him insight into other aspects of retirement he might not have considered.
“Getting ready for retirement can be stressful,” Bates says. “There are so many things you have to be aware of. I think all plans should have some program to help retirees prepare for retirement. Gracie [Flores] has done a wonderful job with the seminar.”
Flores says her program has gotten the attention of a few other fund executive directors who have sent representatives to sit in on her CCFRS' pre-retirement seminars to bring back ideas to their own systems. She modeled CCFRS’ program off of a similar program hosted by the San Antonio Fire and Police Pension Fund, which hosts a full-day pre-retirement seminar for its members twice a year.
“Ours, of course, is on a smaller scale due to our member size and resources,” she says.
San Antonio
The San Antonio fund’s program attracts 60 to 80 people each time, says Warren Schott, the system’s executive director.
The San Antonio fund’s program attracts 60 to 80 people each time, says Warren Schott, the system’s executive director.
“If we had more demand, we would hold them more often,” he says. “But currently, twice a year seems to be working fine.”
The seminar is used to get members prepared for retirement and does not focus on pension issues. The program usually focuses on 10 issues that are important for public employees to consider before retiring. During the fund’s May seminar, attendees learned about common tax issues retirees face, legal planning, financial planning, health and wellness, and psychological matters. Individuals outside of the system usually conduct the sessions so a lot of staff time isn’t consumed. Doctors hosted the health and psychological sessions.
“Soon-to-be retirees – regardless whether they are from a small or large fund – need to begin thinking about the numerous issues they will face in retirement,” Schott says. “No one else prepares them for this, so it seems logical that the pension fund would provide it.”
The San Antonio system encourages active members who have been on the job at least 20 years to begin attending the seminars. Schott says those within one year of retirement are invited to participate again.
Schott suggests executive directors sit in on his seminars and “steal” ideas to conduct their own pre-retirement workshops for their members.
Houston
Houston
The Houston Police Officers’ Pension System doesn’t host a pre-retirement seminar like San Antonio and Corpus Christi. However, the fund hosts an annual conference for its members already in retirement.
The fund’s retirement program began about 20 years ago. The system’s executive director, John Lawson, says 500 to 600 people attend the program, which runs a full day. He says because people are often busy and don’t have time to read and research the retirement topics on their own, it is important that pension systems work to educate their members after retirement.
The fund’s retirement program began about 20 years ago. The system’s executive director, John Lawson, says 500 to 600 people attend the program, which runs a full day. He says because people are often busy and don’t have time to read and research the retirement topics on their own, it is important that pension systems work to educate their members after retirement.
Topics include many of those included in the Corpus Christi and San Antonio programs. During this year’s Houston retirement conference, a recap of what bills passed and what didn’t during a recent state legislative session will be discussed. Lawson says he also often invites the mayor of Houston to speak during the assembly and provides attendees with a lunch - two things smaller systems may be able to replicate for their own pre- or post-retirement programs.
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| Allen Jones |
Allen Jones is the communications manager for the Texas Association of Public Employee Retirement Systems. Email him at allen@texpers.org or call 713-622-8018.
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