Resolution on the agreement securing pension benefits and the elimination of two work days before Labor Day:

Oct 16, 2009 1:51 PM

WHEREAS, as a result of the worst economic crisis in the United States since the Great Depression, public services – including public education – have been subjected to draconian budget cuts, public sector workers have been laid-off and public sector unions have come under pressure to diminish the salaries, health benefits and pension benefits of their members; and

WHEREAS, from the start of this economic crisis, the United Federation of Teachers has identified two primary objectives that have guided our response to this crisis: protecting the quality of the educational services provided to New York City public school children and securing the economic livelihood and professional status of our members; and

WHEREAS, the UFT has rightly rejected efforts to raise the retirement age of New York City public school educators and otherwise reduce their pension benefits – efforts that have grown in intensity since two state public employee unions negotiated agreements which included such measures; and

WHEREAS, on June 22, 2009, the UFT successfully negotiated an agreement and memorandum of understanding that would secure our hard-won age 55 retirement pension rights and leave intact the pension and health benefits of all UFT members, in active service and retired; and

WHEREAS, as a result of this agreement, the work year of all UFT members who now report two days before Labor Day will begin the Tuesday after Labor Day, effective September 2009, with one day bought by savings from the agreement and the other day to be negotiated with the New York City Department of Education in the next round of contract negotiations; and

WHEREAS, this agreement will protect UFT members from negative features in plans negotiated by other New York unions such as an age 62 retirement and a limit on the amount of overtime [our “per session” pay], which can be counted for purposes of establishing retirement benefits; and

WHEREAS, this agreement maintains the guaranteed 7% rate of return in the Fixed Return Fund of the Tax Deferred Annuity but will no longer provide the additional 1.25% rate of return, a modification that reflects the downturn in investment income since the stock market collapse of last year; and

WHEREAS, while under this agreement new UFT members will continue to have the same pension benefits as current members and will make additional contributions for these benefits; and

WHEREAS, this agreement will require new UFT members to work for the Department of Education for ten years, rather than the current five, to be vested in the pension plan and will require new UFT members to work for the Department of Education for fifteen years, rather than the current ten, to be eligible for lifetime retiree health insurance coverage; and

WHEREAS, this agreement will require new UFT members to revert to the original Tier Four rules and contribute 4.85% of their salaries for most of the years of service, rather than the current ten years of 4.85%, followed by 1.85% for most of the remaining years of service; and

WHEREAS, since the additional pension contribution for new UFT members will not take effect until ten years have passed, this time lag will provide the UFT with many opportunities to improve that formula in better economic times; and

WHEREAS, this agreement thus secures vital pension benefits for UFT members and wards off attempts to reduce and diminish those benefits while winning back the two work days before Labor Day; be it therefore

RESOLVED that this Delegate Assembly of the United Federation of Teachers endorses and supports this agreement and memorandum of understanding.

Passed at the June 24, 2009 Delegate Assembly.