Apr 13, 2006 3:53 PM
Both in-service members and retirees in Tiers I/II have the right to invest their Annuity Savings Fund (ASF) and Increased-Take-Home-Pay (ITHP) accounts in three investment choices. All members have the right to invest their Tax-Deferred Annuity (TDA) account in the same three choices. In February, we wrote about the Fixed, Variable A and Variable B funds in some detail. We informed members who had TDAs that they had until March 1 to make changes in their investments.
April is the month to make changes in the ASF and ITHP for in-service and retired members, and the TDA for the more than 4,500 retirees who get a TDA check each month in addition to their Qualified Pension Plan (QPP) check. Any changes requested will begin in July and take a year to complete.
The question is, of course, should a person make a change at all. Some things to think about in deciding are:
Financial experts tell us that there is no way to time the direction of the financial markets. Making changes in one’s investment elections should be done for sound financial reasons, like those above, and not to try to guess the direction of the financial markets.
The accompanying chart shows the returns for in-service members’ ASF, ITHP and TDA accounts as well as deferred TDA accounts for retirees.
The returns for retirees depend on the retirement date and the annuity factor used to calculate the benefit.
To change the way QPP accounts and retiree TDA accounts are invested, the TRS must receive the request to change application by May 1. Forms are available from the UFT or from TRS.
July 1 is the most common retirement date of the year. If you are planning to retire at the end of this school year or at the end of your summer job, call the pension department at 1-212-598-6866/7 for an appointment for a final pension consultation. You will be given the next available appointment with a consultant at the UFT borough office most convenient for you.
Do not delay in making your appointment. You may jeopardize getting one if you wait too long. We do not want you to retire without this valuable UFT service.
Social Security privatization advocates are alive and well. The Senate rejected, 46-53, an amendment to the fiscal year 2007 budget that would have allowed money to be moved out of the Social Security Trust Fund as a first step to privatization.
“We must continue to be vigilant,” said Ruben Burks of the Alliance for Retired Americans (ARA). “This administration sees how unpopular the private account idea is but doesn’t seem to care.” To which we say amen.
The ARA is a nationwide organization of 3 million union retirees and other older and retired Americans working together to make their voices heard in the laws, policies, politics and institutions that shape our lives.
“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).