Today, PensionPortal.com announces the release of a new platform to help public employees understand the value of their pension. When public employers provide access to the portal, their employees better understand when they can retire and how much their pension is worth.
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PensionPortal.com is designed to provide an integrated benefit analysis, showing public employees how their pension plan, Social Security benefits (if relevant), savings, and any other potential assets work together to fund their retirement. (Graphic: Business Wire)
“So many state and local governments have generous retirement systems that can serve as an important tool for retaining public employees,” said Jim Westrum, a school business officer in Minnesota. He explained that, with a defined benefit plan, the last years of employment are often the most impactful, so leaving public employment could have a disproportionate effect on retirement income. “Unfortunately, when public employees don’t fully understand or appreciate the value of those retirement benefits, they may leave their jobs for new opportunities without fully understanding the financial implications.”
The portal performs two types of calculations for employees. First, it performs a retirement needs analysis that integrates different sources of retirement income. This helps employees understand when they may be able to retire. A second analysis calculates the projected cash flow a plan participant will receive during retirement, forecasting balances at various rates of return. This illustrates how much someone would need to fund the desired retirement income. Together, these two calculations are designed to help employees better understand and appreciate the benefits offered by their employer.
“We enjoy showing public servants their total projected distributions during retirement,” said Edward Dressel, president of PensionPortal.com. “Most public employees have no idea that their pension plan may pay out two or three million dollars over their life expectancy.”
Public employees typically need 10–15 minutes to walk through the wizard to understand how their pension plan, Social Security, and retirement savings work together to provide substantial retirement income.
Public employees value their retirement benefits, yet studies consistently show that teachers and other public employees have only a limited understanding of those benefits. The 2023 SHRM Employee Benefits Survey found that employees ranked retirement benefits second in importance (tied with leave benefits and just behind health benefits). And the WTW 2022 Global Benefit Survey found that 77% of employees want help understanding their retirement plans.
PensionPortal.com is designed to help public employers educate their workforce so that employees can understand the value of available retirement benefits. Dressel stated, “We are excited to provide a solution that helps state and local governments with employee retention. We are proud to bring this necessary and valuable solution to the table.”
Launched earlier this year, PensionPortal.com is a sister company of RetireReady Solutions. Since 1986, the company has been helping financial advisors who work in the 403(b) space, focusing on state and local government employees. RetireReady Solutions’ financial planning solutions can calculate retirement income from over 700 public pension plans across the United States, including state and municipal plans.
About PensionPortal.com
PensionPortal.com helps public employers recruit and retain their talent by educating them about their retirement benefits. The company’s portal allows employees to log in and, in just 10–15 minutes, understand their retirement projections and the value of their pension system. Located in Dallas, Oregon, PensionPortal.com is committed to helping public employees better understand their retirement benefits and make better decisions about their future.
About RetireReady Solutions
RetireReady Solutions® helps advisors build trust with their clients. Founded in 1986 as a retirement investment firm for teachers and other public employees, RetireReady Solutions specializes in retirement modeling, analysis, and illustration software for 401(k), 403(b), and federal retirement plan advisors, agents, and brokers. RetireReady Solutions is committed to continuously improving its solutions and supporting plan advisors with world-class training and support. For more information, visit retireready.com/trak-comparison, or call 503.381.1111.
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