Secure Your Future
Take good care of yourself — in more ways than one
May 12, 2005 1:36 AM
Every year we like to give you something to look forward to. We asked the Teachers’ Retirement System to search its retiree files and give us the number of retired members in their 80s, 90s and 100s.
This year the figures are:
Octogenarians — 9,343
Nonagenarians — 2,673
Centenarians — 73
Remember the old gag line, “If I knew I was going to live so long I would have taken better care of myself”? Maybe it’s not so funny and we should act on it.
These sturdy folks are among the 65,800 TRS retirees receiving a check each month.
Unclaimed funds
In March we notified about 900 UFT members whose names were on the TRS Web site list of unclaimed checks. As of April 19, TRS issued 196 replacement checks totaling $512,810.39 to members who responded.
The UFT makes every effort to aid its members to achieve financial security. The average amount of each check was over $2,600.
Did you leave any money on the table? If you received one of the letters and ignored it, act now. If you want to check to see if your name is on the list, go to the TRS Web site www.trs.nyc.ny.us and click Unclaimed Checks.
While we’re on the subject, we want to point out that many people have 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.
According to the National Association of Unclaimed Property Administrators, 42 states reported more than $15 billion in unclaimed funds. They recommend that people search for unclaimed funds in each state in which they have lived.
You can check if any funds are due you by starting at the following Web site: www.unclaimed.org and going to the state you wish to search. Good Luck!
Per-session deductions
More than 50,000 members are working in per-session activities. As you know, the UFT won a court case making per-session earnings pensionable. Since these earnings are pensionable, members who are/were making required contributions to the Qualified Pension Plan must also make contributions on their per-session earnings. Beginning in May, the TRS will reach out to those members who have a deficit because they did not make the required contributions on their per-session earnings. The letter from the TRS will specify the period that was missed, the cost and payment options.
Health insurance
The TRS has arranged it so that during June retiring members can hand in their retiree health insurance forms (ERB) to representatives of the Department of Education at the same time and in the same place that they hand in their retirement applications — 55 Water Street, 2nd floor. We are trying to make the act of retiring as stress free as possible. This service saves a trip to the DOE, which would otherwise be necessary to hand in the ERB form. Health insurance has been described as the fourth pillar of retirement security.
TDA outreach
The tax-deferred annuity is one of the most valuable and appreciated benefits of our job. We know that a solid, guaranteed Social Security, a defined-benefit pension, and a health-insurance program should be supplemented by a savings and investment program like our TDA in order to guarantee a financially secure retirement.
So the TRS is attempting to expand TDA participation from its nation-leading percentage of participants to an even higher percentage.
In 2000, the UFT obtained legislation which ends the required 3 percent contributions to the qualified pension plan (QPP) after a member reaches 10 years of membership or credited service. We have urged such members who are not participating in TDA to begin contributing and we have also urged TDA participants to increase their contributions.
At our suggestion, TRS is going to inform those members who are reaching their 10-year date that their 3 percent contributions will cease and will include a TDA enrollment or change-of-rate form in the letter. Use this opportunity to increase your retirement security.
Also, each new member who joined TRS in the fall and who has not enrolled in TDA will receive a TDA enrollment kit this spring.
If you have any questions about the TDA program, call your UFT borough office.
Final consultation
No one should retire without a final consultation with a UFT pension consultant. Appointments are available for those retiring at the end of this school year. It is suggested that you bring your spouse, partner or financial advisor with you. The consultation will:
- provide an estimate of the retirement allowance under maximum and appropriate options;
- review excess funds and loans at retirement and the consequences of any actions on these matters;
- review the TDA and choices at retirement;
- review retiree health insurance and Welfare Fund benefits;
- review the effect of variable or fixed annuities (tier I/II);
- review general tax information;
- provide help in filling out and filing forms.
You can set up an appointment by calling 1-212-598-6866. Call now, if you are retiring at the end of the term. 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).
