The United Federation of Teachers

For Immediate Release

UFT and city agree on 55/25 and pilot program for voluntary, school-wide bonuses

Oct 17, 2007 5:23 PM

The UFT, the city and the Department of Education on Oct. 17 agreed on mechanisms to implement two of the outstanding provisions of the 2005 collective bargaining agreement.

Under this agreement, current New York City public school educators who have 25 years or more of service will be able to retire at age 55 without a reduction in benefits. Further, a voluntary school-wide bonus program will be established on a pilot basis in approximately 200 of New York City’s highest needs schools.

"This agreement creates pro-active programs that address two major issues facing our schools, making the profession economically viable and fostering collaborative learning environments where teachers have real voice," UFT President Randi Weingarten said.

Pension Equity

Under this agreement, in-service educators on Tiers II, III and IV will be able to retire at 55 with their full pensions once they have completed 25 years of service, as Tier I educators now can. This is subject to legislative approval and the Governor’s signature. Eligible educators will receive a pension equal to one-half of their average salary over their last three years of service. Future hires will be entitled to retire at age 55 with 27 years of service, without a reduction in benefits.

Current NYC public school educators will have six months to decide whether or not to opt in to this enhanced pension program at a cost of a 1.85% pension contribution. Future hires will pay 1.85% more than the current pension contribution, which is 3% for the first 10 years of service. Members in Tier I contributed at least 5% for their first 20 years of service.

The negotiated program is cost-neutral to the city on terms that are comparable to what other unions have negotiated over the past 15 years.

"We are delivering on the promise we made to work with the city on a retirement benefit that could serve as an incentive for teachers to work in and stay with the New York City public school system," Weingarten said. "This pension benefit makes teaching an attractive lifetime career for new teachers. It gives them an incentive to stay for the long haul. Currently, almost half of new teachers leave in their first five years. We need to slow this 'brain drain' because experienced career teachers provide much needed quality and stability for our public school system."

These pension improvements conclude decades of UFT efforts to achieve equity among the different pension tiers.

School-Wide Bonuses

Under the agreement, school-wide bonuses will be offered on a voluntary basis to approximately 200 of the city's high needs public schools if the schools show significant gains in academic achievement over the course of a year. Staff members must vote to opt in by a 55% majority before a school will participate.

"The school-wide bonus plan reflects the core belief and principle of the UFT: students achieve when all the educators in a school work together on their behalf," Weingarten said. "By fostering teamwork and mutual support, the whole school and all its children benefit."

Since 1999 principals have received bonuses for gains and student achievement; this plan will extend that opportunity to UFT members in the school.

Each school's award will be equal to approximately $3,000 multiplied by the number of UFT members in the school, but each school will be free to determine how the money is distributed among UFT-represented staff. Options include giving all staff the same amount or varying amounts based on their role in the school's improvement, but every UFT staff member is presumed to receive some bonus. This money will not reduce the amount of money available for collective bargaining in any given year.

A compensation committee of four – made up of the principal and another administrator along with two UFT-represented educators elected by their colleagues – will decide by consensus how to divide the bonus. If the committee is unable to decide on the division of the bonus, it will be forfeited.

"School-wide bonuses properly refocus the misguided debate over individual merit pay," Weingarten said. "Respecting and understanding the importance of teamwork and collaboration is precisely why the UFT has opposed the idea of individual merit pay for teachers – especially when based solely on student test scores. This school-wide program recognizes and builds upon a core philosophy that says students learn, achieve and benefit most when all educators in a school collaborate to provide the best possible education."

Weingarten said school-wide bonuses promote cooperation; acknowledge the contribution every school staff member makes to students' success; and motivate principals to provide the support and conditions required for all the success of all students.

"This school-wide plan generates the kind of spirit and partnership within the school community that make a school great," Weingarten said.