Mar 2, 2006 11:46 AM
We are at that time of the year when rumors of a retirement incentive are floating about. But there is no retirement incentive being discussed for UFT members at this time. The State of New York is discussing a retirement incentive for state employees and this has caused a rush of inquiries. You can be sure that if a retirement incentive for UFT members comes under consideration, we will disseminate that news very widely.
However, it is important to remind you that whether there is an incentive or not, UFT members do retire. July is the most common retirement month followed by the end of summer-session programs. If you plan to retire during either of those periods now is the time to make an appointment for a final pension consultation. Call the UFT pension department at 1-212-598-6866 to set up this once-in-a-career meeting. If your appointment is made early enough, it will be at the UFT office most convenient to you. We suggest that you bring your spouse or significant other to the consultation to share the information so that you can make the most appropriate decisions on retirement matters.
The final consultation will cover:
One of the important decisions you may have to make before your retirement date is whether to take Terminal Leave or Termination Pay.
A Terminal Leave is an extension of service of one day for every two days in the Cumulative Absence Reserve (CAR). It is available for people who are eligible to retire or will be eligible by the end of the leave:
Termination Pay, on the other hand, provides you with a lump-sum cash payment of 1/200 of a year’s pay for half the number of days remaining in your CAR at retirement. Payment is made in three annual lump-sum payments after retirement.
By taking Termination Pay, you collect your pension and an additional lump sum.
You should discuss your individual situation with a pension consultant. In order to take a Terminal Leave, you must file an application one calendar month before the leave begins. For a leave to begin on the first school day of the year, you must apply by June 1. To collect Termination Pay, you should file an application when you retire.
Who can make important, binding decisions for you about your health or finances if you are severely disabled?
It is essential that, in order to deal with problems that can arise if you become unable to conduct your affairs, you should prepare a Durable Power of Attorney. This document names another person to act for you. Since the person named, known as the Attorney In Fact, has broad powers, it should be someone you trust completely.
And here is another reminder to make sure your designation of beneficiary listings are current at the Teachers’ Retirement System, at the UFT Welfare Fund and other appropriate places. The designation of beneficiary supercedes your will and therefore you must keep it up to date.
If you have no lawyer of your own to handle your legal affairs, you should consider joining the NYSUT Legal Service Plan. For information contact the NYSUT Member Benefits Department at 1-800-626-8101. Everyone should have the following up-to-date documents:
By having these documents prepared before they are needed, you will go a long way toward easing the pain for your family if problems arise.