As a member of the UFT, you are entitled to a benefit that is becoming as rare as it is important: a pension.
Only 20% of U.S. workers participate in a defined-benefit pension plan, according to the U.S. Bureau of Labor Statistics. Because of your union, you are among the 85% of public sector employees still covered by a defined-benefit pension plan — the gold standard of retirement plans — and one of many valuable UFT benefits.
This type of pension guarantees a lifetime of regular payments based on a formula that takes into account your years of service, your salary and your age.
The payments don’t change, regardless of how the stock market is performing — the amount of your pension benefit stays the same throughout your retirement. That’s valuable peace of mind.
Even if you are a long way from retirement, understanding your pension benefits will provide some insight into how your union fights for you and why the UFT will always stand strong against those who would like to diminish or eliminate the defined-benefit plan and the retirement security it affords members. This hallmark of union benefits is something the union defends fiercely in its daily work.
Department of Education-employed UFT members who are eligible for the defined-benefit plan enroll in the Teachers’ Retirement System (TRS). This includes all UFT-represented full-time paraprofessionals, who automatically become members of TRS — thanks to decades of UFT advocacy that led to the enactment of a state law guaranteeing the same in the fall of 2021.
Your pension is provided through the Qualified Pension Plan (QPP). This is where your pension contributions go and where employer contributions are invested. This well-established system handles the management of your funds and has an enviable track record of investment. Contributions to your pension plan are based on your date of membership in TRS.
The QPP is known as a defined-benefit plan because the benefit is determined by a predefined formula, not the performance of investments.
The UFT ensures that a dignified level of retirement security is available to all UFT members who are career employees of the city Department of Education. Our four pillars of retirement security are:
- A defined-benefit traditional pension, under which the retirement benefit is equal to a fixed percentage of a member’s final average salary
- Social Security
- A Tax-Deferred Annuity (TDA) and/or a Roth option, which are voluntary retirement savings programs
- Health insurance and UFT Welfare Fund benefits
The defined-benefit pension, the TDA and/or Roth option, city-provided health insurance for most retirees and the UFT Welfare Fund supplemental health benefits are designed to work with Social Security to provide financial security for UFT members after a long career of educating and supporting New York City’s children.
The UFT Pension Department is another source of information. Call 212-331-6311 and ask to speak to a UFT pension consultant. Also, consider attending some of the department’s pension clinics on many different subjects throughout the year. Find upcoming clinics here.
For more information about TRS, call 888-869-2877 or visit the TRS website.
This column is compiled by Tom Brown, Victoria Lee and Christina McGrath, teacher-members of the New York City Teachers’ Retirement Board.