Many public and private sector experts believe we are on the verge of a retirement crisis. The baby boomers are approaching retirement age at the same time as employers are shifting away from employer-funded and defined benefit retirement plans. The national savings rate continues to decline. Fundamental changes are under way or expected in the Social Security and Medicare systems.

The convergence of these and other factors is making the jobs of retirement counselors and retirement administrators increasingly difficult and complex.

In local government, many of the individuals who are advising the work force on how to achieve a financially secure retirement have not been specifically trained and equipped to deal with the emerging crisis or the impending changes in the retirement systems. Often, these retirement professionals have not had access to quality educational materials so they can properly educate and advise their government employees and clients.

Few disagree with the notion that the responsibility for retirement planning is shifting from the employer to the employee. This shift can be seen in such measures as:

• greater emphasis on deferred contribution plans
• increases in governmental optional retirement programs
• expanded IRA plans
• greater portability among the different types of existing retirement plans
• a potential Social Security privatization plan, and
• the introduction of individual universal retirement accounts.

Any combination of these changes will drive major new regulatory requirements and legal decisions seeking to require new levels of educational responsibility to the employers, plan sponsors and the financial services industry. As a result, independent certification can assist employers in meeting their obligations to employees.

The International Foundation for Retirement Education (InFRE) was founded by a group of public and private sector representatives in 1997. InFRE’s goals include providing respected and rigorous education and certification programs for retirement professionals, including human resources and benefits personnel, retirement plan sponsors and financial services providers.

Although based initially on concern with the lack of education in the government sector retirement process, the InFRE programs address both public and private retirement programs in addition to defined benefit and deferred compensation benefits. InFRE expects to become the nation’s primary independent source of information and educational programs concerning retirement issues.

InFRE presently offers certification for Certified Retirement Counselors (CRC) and Certified Retirement Administrators (CRA). Certification is provided through a fee-for-service, distance learning process.

Local government administrators, human resources personnel and benefits managers, as well as private sector corporate staff responsible for advising employees about retirement planning are well-served by InFRE’s training. Since many local governments delegate education and training functions to their product providers, requiring certification of the product providers is critical.

InFRE was formed by the National Association of Government Deferred Compensation Administrators (NAGDCA) and the National Preretirement Education Association (NPEA), as well as Texas Tech University, the American Community Service Network and John David Davenport.

The nation’s employers, their staffs, and the professionals who work with them hold the keys to successfully motivating workers to take personal responsibility for their future financial security.

The professionals whose job it is to advise and counsel tens of millions of workers annually must be specifically trained to communicate about the array of plans, benefits, laws and investment options facing America’s employees. InFRE offers such an option to employers today.

For more information, contact Marysue Wechsler at 800/993-7404 or 703/250-3075.

(Financial Services News was written by Steve Swendiman, FSC’s managing director.)