Month: September 2021

PERA Continued to Provide Cost-Effective Service During Challenging Year

Posted on by planeteria

In this story:

  • CEM Benchmarking report finds PERA’s administrative costs in 2020 were lower than the average of its peer group
  • PERA’s service score reflects challenges of COVID-19 pandemic
  • PERA remains committed to improving service to members, retirees

Despite the challenges of the COVID-19 pandemic, Colorado PERA continued to provide a high level of service to its members at a low cost in 2020, according to the latest report from CEM Benchmarking.

The report, which is released every year, compares PERA to other large public pension systems around the United States and the world on two key measures: administrative costs and the quality of service members receive. PERA consistently ranks among the top of its peer group of similarly sized pension systems.

How PERA’s costs compare to other public pension plans

PERA’s pension administration costs in 2020 totaled $31.4 million, for a cost of $48 per member. That’s lower than the average of $62 per member for PERA’s peer group. In particular, PERA spends less than its peers on front-office staff, information technology and major projects.

PERA’s administration costs have been decreasing since 2018, when the cost per member was $52, while peer organizations have increased slightly.

Impact of COVID-19

CEM Benchmarking measures service quality from the perspective of a PERA member, looking at factors such as how long it takes to reach a customer service representative on the phone, and how many of those calls result in a desired outcome.

Like other public pension systems, PERA saw some effects of the COVID-19 pandemic reflected in its service score in 2020. Economic uncertainty led to an increase in calls from members inquiring about retirement, and that resulted in longer wait times for PERA’s Customer Service Center, as well as longer call duration.

As a result, PERA’s total service score dipped slightly to 82 out of 100, which was equal to its peer group but higher than the average of 76 for all pension systems included in the report.

Continuing to build on a tradition of service

The customer service center is a cornerstone of PERA’s operations, providing important information and assisting members and retirees on a daily basis. As PERA continues to work toward fulfilling the Board’s vision of innovation in service delivery, PERA’s customer service team strives to build on its tradition of service quality and dependability.

PERA hired a new director of customer service in September. Philip Hill has more than 25 years of experience in customer service call centers, more than half of which has been in retirement services and human resources.

Hill said his focus will be on making sure PERA’s customer service representatives have everything they need to continue meeting members’ needs in the future.

“In customer service, we consistently look at our methods to make sure we are providing the best service possible,” he said. “We need to continue to maximize our knowledge and availability to our callers through all the tools available to us. This is a great team that wants to do their best for each caller and provide world-class customer service.”

News You Should Know: US Ranked 17th in 2021 Global Retirement Index

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U.S. Slips in 2021 Global Retirement Index | 401k Specialist

The United States is ranked in 17th place on the latest Global Retirement Index from Natixis, dropping one spot from last year. Iceland landed in the top spot for the third year in a row, scoring highly on things like quality of life, access to health care and finances in retirement. The U.S. saw its scores drop in the quality of life, health and finance categories.

Booster Shots Are Coming. Here’s How To Figure Out If You Need One | NPR

Public health officials have given mixed answers on whether booster shots are necessary for COVID-19, but the FDA has approved boosters for older Americans and those at higher risk of becoming seriously ill. Here’s a detailed breakdown of who might benefit from an additional shot, as well as answers to other booster-related questions.

New Bill Would Create Portable Retirement and Investment Accounts | ThinkAdvisor

Saving enough money for retirement is a challenge for many people. A newly proposed bill aims to make it easier by providing every American with a portable retirement and investment account when they’re issued a Social Security number.

Retiring Soon? Here’s How Much to Have in Emergency Savings | Business Insider

You’ve probably heard the common advice to keep three to six months’ worth of living expenses saved up in case of an emergency or large unexpected expense. But if you’re getting ready for retirement, you might want to consider stashing away some more cash first. Here are some tips for how much to save and how to use it.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

PERA Board Continues to Press for Innovation

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In this story:

  • PERA Board meeting in September to hear updates on strategic plan, investments, member service
  • PERA staff continue efforts to fulfill Board’s vision of innovation in service delivery
  • Member Education’s transition to remote webinars just one example of this work

When the COVID-19 pandemic struck the United States in early 2020, PERA joined offices around the country in transitioning to remote work. While disruptive, the pandemic also provided opportunities to speed up work that was already underway to improve the ways PERA provides service to members and retirees.

Fulfilling PERA’s mission and vision

PERA’s stated vision is “to innovate and build on a tradition of service by being a trusted partner in order to meet the changing needs of our diverse membership.” At its annual planning session — taking place Sept. 15 to 17 — the Board of Trustees will hear updates on how various departments within PERA have been working to fulfill that vision.

A big part of that effort is taking advantage of technology to meet people where they are. In the past year and a half, PERA has made moves to increase transparency and accessibility by live streaming Board meetings on YouTube and providing additional ways to connect to PERA’s annual town hall meetings.

In addition, efforts have been underway to reduce the amount of mail PERA sends to members and retirees and increase the use of digital communication channels like email, social media and video conferencing.

Improving efficiency, accessibility of member education

PERA’s Field Education team — now called Member Education — was already working to adapt some of its educational offerings into an online format when the pandemic began. With the sudden shift to remote work, the team was well-positioned to kick that process into high gear and reach more PERA members than ever before.

“We’ve been able to have higher attendance at fewer meetings,” said Carissa Cummins, a Member Education Representative. “You can join from your couch; you can join anywhere. We are offering webinars at all sorts of times of the day.”

Member Education hosts free Zoom webinars every weekday on a variety of topics, from benefit basics for new members to purchasing service credit and preparing for retirement. With the added flexibility of conducting meetings remotely, the team has been able to develop four new webinars in the past year.

Member Education continues to find and develop new ways to connect with PERA members, including utilizing live streaming on PERA’s Facebook page. They’ll be using that platform and Zoom webinars to help retirees navigate PERACare open enrollment in October.

“I’m really excited for the next Facebook Live,” Cummins said. “We do work really hard to engage the audience…we really try to get them involved in the process and the experience.”

Feedback from webinar attendees

As the Member Education team gathers feedback from webinar participants, many of them appreciate having the ability to attend virtually rather than in person.

“It allows people an opportunity to attend a session that they would never be able to schedule and attend in person,” one attendee said.

For others, the format of the meeting isn’t as important as what they gained: “I have a better understanding of what it takes to retire, even if it is further down the road. Now I know how to prepare for the future,” another attendee said.

To view PERA’s webinar offerings and sign up for a session, click here.

News You Should Know: Lawmakers Seek to Expand Medicare Coverage

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House Ways and Means Committee Approves Medicare Expansion | Yahoo! News

Lawmakers in Congress are pursuing an effort to expand Medicare coverage to include vision, hearing and dental care. Vision coverage would be the first benefit to be added to Medicare, starting in 2022, with hearing coverage coming in 2023 and dental coverage in 2028. Lawmakers hope to have the proposal included in a budget reconciliation package that’s in the works.

House Committee Advances Automatic Retirement Plan Proposal | Pensions&Investments

Another proposal being considered during the budget reconciliation process is one that would require employers that don’t offer retirement plans to automatically enroll their employees in an IRA or 401(k). Employers would not be required to match employee contributions, but they would face a penalty for failing to offer a retirement plan.

The Social Security Trust Fund Is in Better Shape Than Expected. For Now. | ThinkAdvisor

The 2021 Social Security Trustees Report projects the trust fund that pays benefits to retirees will be depleted by 2033, which is one year earlier than predicted in the previous report. However, the news isn’t as bad as some expected during the height of the COVID-19 pandemic, and there’s still time for lawmakers to take action.

Social Media’s 70-Up ‘Grandfluencers’ Debunking Aging Myths | AP News

A growing number of older Americans are signing up for social media apps like Instagram and TikTok to fight stereotypes about what it means to age. These “grandfluencers” are turning their life experience and perspectives into popular — and sometimes lucrative — followings.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

What ‘Retirement Security’ Means to PERA Members

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This is the first in a series of articles for National Retirement Security Month exploring how Colorado PERA provides retirement security to public employees.

October is National Retirement Security Month, and the events of the past year and a half have made clear the importance of planning for the future.

The value of a defined benefit pension

Retirement security is a major concern to many Americans right now. A recent survey by the National Institute on Retirement Security found Millennials and members of Generation X are especially worried about saving for retirement and are more likely to be concerned about how the COVID-19 pandemic might have affected their retirement plans.

According to the survey, members of all age groups agree that the average worker cannot save enough money for retirement on their own and it’s important to provide for retirees. To that end, the generations agree on the importance of defined benefit retirement plans — also known as pensions — like what Colorado PERA offers. With a pension, retirees receive a lifetime benefit they can’t outlive.

Earlier this year, we surveyed retired PERA On The Issues readers and asked them what the security of a PERA benefit means to them. Continue reading for their perspectives and their advice for preparing for the future.

What does your PERA benefit mean to you?

For many retirees, the value of a defined benefit is the reliable income.

Allen W., a PERA retiree now living in Wisconsin, said: “[PERA] provides regular monthly income along with Social Security, and my personal investments,” he said. “Without PERA I would have to reduce my standard of living.”

For Mike M., a retired educator from Westminster, quality of life is key: “A PERA retirement plan has allowed me to do the things I never had the time to do while working,” he said. “Travel and recreation and enjoying time with friends and family have been a big part of my life during retirement. A secure retirement plan provides me with the financial resources to do the things I always wanted to do.”

Walter R. of Colorado Springs said he appreciates the peace of mind that comes from knowing his loved ones will be taken care of: “The retirement plan truly helps us,” he said. “In addition, I elected Option 3 which will ensure my spouse continues to receive our retirement pension when I pass.”

What advice would you give to others?

PERA retirees said they’ve learned some important lessons on their journey toward retirement. Mark J., a retiree from Colorado Springs, said his advice for younger workers is to learn as much as they can about their benefits.

“Learn all of the PERA plan details and attend all PERA briefings long before you plan to retire,” he said.

Rob W. of Salida said he learned the importance of saving additional money for retirement: “Enroll in the PERA Defined Benefit plan and start saving in a 401(k) or 457 plan the first month of your employment,” he said.

For others, the advice is simple: Stay the course.

“If you are a working PERA member, stay in PERA if you are in a job you enjoy doing,” Mike M. said. “A retirement plan such as PERA can provide you with retirement security at a time when you need it in later years.”

We’d love to hear from you — if you’d like to share your story about what your PERA benefit means to you, click here.