RETIREMENT PENSION PROJECTIONS
American Pension and Retirement Services help educators, public employees, and their families with their Pension Planning and Pension Education.
Retire at 100% of your last years income. Not 60% of your last year's income.
American Pension and Retirement Services provide all pension members and their families with a FREE state pension report. Get a Pension Report and an APRS pension specialist will email you to educate you on your pension benefits.
FREE PENSION FOR ALL PENSION MEMBERS
Since 2000, American Pension and Retirement Services have been educating all certified and uncertified pension members in all 50 states.
APRS provides free projections and workshops to all pension members nationwide.
Click below to receive a detailed pension report and a full educational explanation of your pension benefits.
STATE PENSIONS EXPLINATION
A pension is a commitment on the part of an employer to provide retirement benefits. The employee (member) defers a portion of his or her salary that the employer holds in trust. That money grows over time and is paid to the member after he or she retires in the form of monthly payments payable for life.
A traditional pension is a "defined benefit" (DB) pension. Under a DB plan, the amount of the retirement benefit is based upon a formula that includes the member's final salary and years of service (also known as "service credit").
The amount of the pension is not based on the value of the member's account. In addition, DB pensions are payable for life; the member can never outlive his or her pension.
A different type of retirement plan is a "defined contribution" (DC) plan, such as a 401(k) plan in the private sector. Under a DC plan, the future retirement benefit is based upon how much the participant contributed and the earnings made on those contributions.
PENSION MEMBERS RECEIVE A AVERAGE RETIREMENT PENSION. A PENSION BENEFIT IS ONLY A PIECE OF THE RETIREMENT PIE.
Many teachers get paid average salaries, making Pensions an essential driver of educator recruitment and retention. Pension is not 100% of the retirement pie. APRS takes the time to educate you on how much of the pie does the pension provides. Most importantly, how much the pension does NOT provide.
Differences Between Defined Benefit
Two key differences exist between a traditional defined benefit (DB) pension and a defined contribution (DC) plan:
Under a DB plan, the employer assumes the investment risk. The amount an employer contributes to a DB plan depends on a number of factors, its members; ages, years of service, salaries, etc. as well as the return on investments. If investment returns are low, the employer's contribution increases. Conversely, if investment returns are high, the employer's contribution decreases.
The amount of the member's contribution is often fixed by law. Returns on investments do not affect the amount of the member's contribution. Under a DC plan, the participant assumes the investment risk. Within certain guidelines, the participant has control over how much he or she contributes to the plan, as well as how those contributions are invested. However, poor investment decisions or negative investment returns due to market performance can result in lower amounts available at retirement.
Under a DB plan, the member can never outlive his or her pension. Once a member "vests" (earns enough service to become eligible for a pension) that pension is guaranteed and is payable for the life of the member. The amount of the pension is based upon a formula, not on the value of the member's account. Under a DC plan, the amount of the retirement benefit is unknown until the participant retires. Also, it is possible that the participant could outlive the value of his or her account.
THINK OF APRS AS YOUR “PENSION EDUCATORS.”
Regardless of which state your Pension is with, we are here to help explain how your Pension Plan works.
If you are a Public Pension Member in or nearing retirement, you must understand how your Pensions and Social Security payouts work.
You’ve worked hard for many years, and now you must sustain yourself in retirement!
Thankfully Pensions and Social Security exist, but they can be confusing and challenging to understand. That’s where APRS helps Educators and their families.