Secure Your Future
Financial things to think about — and do — this month
May 11, 2006 10:40 AM
May is the month that tax-deferred annuity participants — both in-service and those who retired with deferred accounts — can apply to change their investment elections for the third quarter of 2006 (begins July 1). Forms are available from the UFT or the Teachers’ Retirement System.
See the box for a comparison of how the three available plans did over different periods of time. To provide a yardstick we have included the Russell 3000 Index. It measures the performance of the 3,000 largest U.S. companies based on market capitalization (size), which represent about 98 percent of the U.S. equity market.
Performance for period ending 3/31/06 | ||||
| | By Percent (%) | |||
| | Last Quarter | 1 Year | 5 Yrs | 10 Yrs |
| Variable A | 5.34 | 15.44 | 6.24 | 8.99 |
| Variable B | 0.92 | 3.70 | 4.02 | 4.94 |
| Fixed | 2.06 | 8.25 | 8.25 | 8.25 |
| Russell 3000 Index | 5.31 | 14.28 | 5.33 | 9.19 |
Past performance is no guarantee of the future | ||||
Some TRS statistics for March
About 712 members took Qualified Pension Plan (QPP) loans totaling more than $4,682,000.
About 678 members took TDA loans totaling more than $9,529,000.
QPP loans as well as TDA loans are available from your accounts at TRS. Information on TRS loans is available from the UFT or TRS.
There were about 67,902 retirees collecting a retirement check in March. They collected a total of more than $231,559,000. Of the retirees, 9,516 were octogenarians, 2,584 were nonagenarians and 74 were centenarians. Take good care of yourself.
The QPP had more than $33 billion in assets as of March 31 and was being adequately funded to guarantee that when you retire, there will be sufficient funds to pay your benefits.
End-of-life care
The whole nation witnessed through the tragic case of Terri Schiavo how difficult it is for family members to make critical decisions about end-of-life care when written instructions are not in place. It is never too early to seriously think about Advance Care Planning (Advance Directives). Your decision to accept or reject medical treatment, including life-sustaining procedures, depends on your personal wishes, values and beliefs. It is best to think about these matters before you are faced with an emergency. If you don’t provide written instructions your health-care wishes may not be carried out. Preparing several legal forms known as Advance Directives can ensure that your wishes are respected.
New York State allows for several Advance Directives. If you plan to live in another state, you should check with that state about forms needed
- A Health Care Proxy lets you appoint a health-care agent — a person you trust to make health-care decisions for you if you are unable to make decisions for yourself.
- A Living Will allows you to leave instructions that explain your health-care wishes, especially end-of-life-care. You cannot use a Living Will to name a health-care agent — you must use a Health Care Proxy.
- A Do Not Resuscitate Order (DNR) allows you to express your wish to do without emergency treatment to restart your heart and lungs if your heart or breathing stops.
Unclaimed funds
Remember the TRS Web site — www.trs.nyc.ny.us — has an unclaimed funds section. If you are retired or know a retired member, check the site to see if there are checks that have not been claimed. Last year, this reminder resulted in more than 200 replacement checks being issued. The average amount of each was more than $2,500.
While we are at it, we will remind you of another Web site, www.unclaimed.org, that lists more than $15 billion of unclaimed funds from such sources as old bank accounts, uncashed checks, utility deposits and others. State governments hold these unclaimed funds and would like to return them to the rightful owners. It is recommended that you search for unclaimed funds in each state in which you lived.
TRS reminders
- Have you filed the TDA enrollment form that you received in connection with the TRS’ Spring Campaign? If you do not file promptly, deductions cannot be made before the advance printing of summer payroll checks by the Department of Education.
- Have you filed up-to-date designation of beneficiary forms for both the QPP and the TDA?
- Have you provided TRS with date-of-birth documentation?
- Does TRS have your current address?
- If you plan to change your TDA investment elections, have you filed? The application must be received at TRS by June 1.
Are you retiring at the end of this school year?
No one should retire without a final consultation with a UFT pension consultant. It is suggested that you bring your spouse, signo (significant other) or financial advisor to the session. The consultation will:
- provide an estimate of your retirement allowance;
- review lump sum withdrawals at retirement and the benefits and consequences of doing so;
- review TDA choices at retirement;
- review retiree health insurance and Welfare Fund benefits;
- discuss the effect of variable or fixed annuities (Tier I/II);
- discuss general tax information on retirement income; and
- provide help in filling out and filing forms.
You should set up an appointment by calling the UFT Pension Department at 1-212-598-6866. Call now if you are retiring at the end of the school year. Time is growing short.
“On retirement” 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).
