Secure Your Future

Pension thoughts for the new school year

Sep 8, 2005 1:58 PM

Hi, welcome back. We hope that you had a healthy, relaxing summer and are ready for a new school year. At press time, we are waiting for the fact-finders report on our contract impasse. The UFT made a first-class presentation to the fact finders that we can all be proud of. The city gave its same tired arguments about pattern bargaining.

This year, retirement security will continue to be in the news. President Bush is continuing to push for private accounts in Social Security even though 60 percent of Americans are opposed to such accounts. Calls are going out to replace defined-benefit pension plans like ours with defined-contribution plans similar to our tax-deferred annuity program. Imagine having a Social Security benefit invested in volatile financial instruments, no pension, and a savings account similar to our TDA as the supplement to Social Security. This would provide real retirement insecurity.

The governor has not signed any new pension legislation, but several bills have been passed in both houses of the legislature, which, if the governor signs them, will help UFT paras, nurses and other members.

The 8.25 percent rate of return on the fixed-dollar investment in the Annuity Savings Fund and in the Tax-Deferred Annuity Fund has been extended for another year, until June 30, 2006. The rate will be re-examined during the next legislative session.

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 every 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 phone questions;
• borough-wide meetings on tax-deferred annuities and other current issues;
• pension clinics for all tiers;
• the “Ready-or-Not” program for those nearing retirement;
• a final consultation to give detailed information to members about to retire;
• three teacher-members who represent you on the Teachers’ Retirement Board.
• up-to-date information on the union's Web site: www.uft.org.

Pension file

Each member of the 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). If you participate in the TDA program, a separate TDA Designation of Beneficiary form is required.
• 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).
• Any other document relevant to your retirement benefits, such as tier change documents and purchase of lay-off time document(s).

Pension calendar

September: Newly appointed members and paras, who have not done so, should file enrollment applications for the Teachers’ Retirement System.

Non-appointed pedagogues and part-timers, who have not done so, should enroll in the Board of Education Retirement System (BERS).

October: Study carefully the facts about the TDA program. Read the articles in the New York Teacher and study materials provided by the TRS.

April: Tier I/II members must make decisions on the investment of their Annuity Savings Fund and their Increased Take-Home Pay accounts. Review your investment goals carefully. April is the month to elect changes in your participation in the fixed program or the two variable programs. The deadline for filing for a change is May 1.

TDA quarterly investment changes

Here are the dates for quarterly investment changes for TDA, including deferred accounts:

• Nov. 1 to Dec. 1 (or the last business day of November, if Dec. 1 falls on a weekend).
• Feb. 1 to March 1 (or the last business day of February, if March 1 falls on a weekend).
• May 1 to June 1 (or the last business day of May, if June 1 falls on a weekend).
• Aug. 1 to Sept. 1 (or the last business day of August, if Sept. 1 falls on a weekend).

Changes will take effect on Jan. 1, April 1, July 1 and Oct. 1 respectively.

If you have any retirement-related items you would like to see in this column, please feel free to contact one of us.