Secure Your Future

UFT, allies fighting to protect, improve public pensions

Sep 12, 2008 4:38 PM

Welcome back! Another school year has started and we are prepared to bring you information you need in order to “secure your future.”

Public pension plans are still under attack. Private pension plans have all but disappeared; a very small percentage of privately employed individuals are covered by traditional defined benefit (DB) pension plans. Ask your own relatives and friends who are not public employees or who do not work in a heavily unionized trade if they have a DB pension plan. A recent report by the federal Government Accountability Office (GAO) states that about half of single employer pension plans have been frozen. Freezing a pension plan so that new employees cannot join it and covered employees’ benefits do not grow is often a step toward terminating these plans.

The UFT and its allies — the American Federation of Teachers, AFL-CIO, National Conference on Public Employee Retirement Systems and National Education Association — are leading the fight to protect and improve public pension plans.

As a matter of fact, UFT President Randi Weingarten led the UFT’s efforts to dramatically improve the union’s pension plan. Those of us who were in covered TRS or BERS titles as of Feb. 27, 2008 who opted into the 55/25 program can now retire with an unreduced pension after 25 years of service at age 55 — a full five years earlier than under the older law! By the Aug. 25, 2008 deadline for opting into the program, about 41,500 members had done so. All covered TRS or BERS members who became members after Feb. 27, 2008 are covered by the 55/27 plan which allows a member 55 years of age to retire after 27 years of service with an unreduced retirement allowance. This is a full three years sooner than under the previous law.

UFT offers many pension services

For most of us, the benefits we enjoy through retirement system membership are our largest fiscal asset. The UFT seeks to keep you informed about these benefits by supplying the following services:

• this column, which appears in each issue of the New York Teacher;
• a pension newsletter, PensioNews;
• factual pension handbooks;
• speakers for chapter meetings or faculty conferences;
• pension consultants in each borough office for consultations when appropriate or to answer questions by phone;
• boroughwide meetings on tax-deferred annuities and other current issues;
• the “Ready-or-Not” program for those five to 10 years from retirement;
• pension clinics for all tiers for those two to three years from retiring;
• a final consultation to give detailed information to members about to retire;
• three teacher-members who represent you on the Teachers’ Retirement Board; and
• up-to-date information on the union’s Web site: www.uft.org.

Pension file

Each member of the Teachers’ Retirement System should set up and maintain a file of important pension-related papers. This file should be accessible to a trusted person and should include:

• your copy of the up-to-date Designation of Beneficiary form for the Qualified Pension Plan (QPP), and if you participate in the Tax-Deferred Annuity program, a separate TDA Designation of Beneficiary form;
• your most recent Annual Benefits Statement (ABS) which, among other things, has a record of your credited service and a listing of your beneficiaries;
• your most recent Quarterly Account Statement(s) (QAS), one for QPP and one for the TDA, if you participate; and
• any other document relevant to your retirement benefits (such as tier change and purchase of layoff time documents).

Identity theft

The UFT has suggested to all members that they take advantage of a federal law which requires the three major credit gathering agencies — Equifax, Experian and Trans-Union — to provide individuals with a no-cost copy of their credit report annually. To get the report, you should go to www.annualcreditreport.com or call 1-877-322-8228.

Almost everyone can also get free credit monitoring services. Trans-Union is accused of violating the Fair Credit Reporting Act by selling lists with personal financial information for marketing purposes in the past. Almost all adults in the United States had an open credit account at the time in question: Jan.1, 1987 to May 28, 2008. You should go to www.listclassaction.com until Sept. 24 to get more information. You can also get information by calling 1-866-416-3470.

Pension calendar

September: Newly appointed members and paras who have not done so should file TRS enrollment applications. Non-appointed pedagogues and part-timers who have not done so should enroll in the Board of Education Retirement System (BERS).

October/November: Study carefully the facts about the TDA program. Read the articles in the New York Teacher and study materials provided by the TRS. Join the TDA program as soon as possible if you are not currently enrolled in order to maximize your contributions for the 2009 tax year.

Dates for filing investment election change form

In-service members in Tiers I/II and all in-service TDA members as well as TDA deferred members:

Investment election changes take place on the following dates: Jan. 1, April 1, July 1 and Oct. 1.

You may submit the form at any time and your election would take effect on the next conversion date that occurs at least 30 days after TRS receives your form.

Retired Tier I/II members and all retired TDA annuitants:

Investment elections take effect on the above dates.

You may submit the form at any time and your election would take effect on the next conversion date that occurs at least 60 days after TRS receives your form.

Protect your loved ones

Thousands of in-service members as well as those of you joining TRS this fall must file a designation of beneficiary form both for the basic pension plan (QPP) as well as the Tax Deferred Annuity (TDA). These forms will make sure that your loved ones will be protected by the substantial TRS death benefits payable if the member passes away while in service.

In-service TRS benefits

Retirement may seem so far away that many of you are not thinking about it. But there are retirement system benefits and protections that are provided while we are still in service. The “secure your future” column is going to describe in detail in coming issues:

• Death benefit provisions
• Disability retirement provisions
• The TDA Program
• Loan provisions.

“Secure your future” is compiled and written by Mel Aaronson, Sandra March and Mona Romain, teacher-members of the NYC Teachers’ Retirement Board. For further information on items discussed, call your UFT borough office or the TRS. BRONX: 1-718-379-6200; BROOKLYN: 1-718-852-4900; MANHATTAN: 1-212-598-6800; QUEENS: 1-718-275-4400; STATEN ISLAND: 1-718-605-1400; Teachers’ Retirement System: 1-888-8NYC-TRS (692-877), www.trs.nyc.ny.us.