As a new school year begins, we know your focus is on welcoming students and setting them up for success. But while you’re busy caring for others, it is also an excellent time to make sure you’re taking the right steps to prepare for retirement and secure your own future.
The Teachers’ Retirement System celebrated its anniversary on Aug. 1, marking 108 years of serving New York City’s education professionals. The greatest benefit of union membership is the guaranteed retirement allowance provided through the Qualified Pension Plan (QPP). The UFT has successfully protected this valuable financial asset through thick and thin.
Once you meet certain age and service requirements, you are eligible for a defined-benefit pension unaffected by the ups and downs of the financial markets. TRS membership is automatic for most UFT members who work for the city Department of Education.
All new regularly appointed teachers, paraprofessionals, school secretaries, school counselors and other pedagogues will be automatically enrolled in TRS. They will receive a welcome letter from TRS this fall with instructions on designating beneficiaries, a request to submit proof of date of birth and an invitation to join the voluntary Tax-Deferred Annuity (TDA) program.
Other UFT members — per diem teachers, substitute paraprofessionals, school nurses, and physical and occupational therapists — are not automatically enrolled in TRS and therefore will need to file a TRS enrollment application.
TRS members contribute to the defined-benefit plan through automatic payroll deductions.
The date when you became a TRS member determines what pension tier you’re in and your contribution rate. Those DOE employees joining TRS today are generally in Tier 6.
For TRS members, a tax-deferred annuity program goes hand in hand with the pension plan. During their working years, members can build additional retirement savings by enrolling in the TDA program and making voluntary contributions from each paycheck. As its name implies, the TDA program enables participants to save money while deferring payments of federal and local income taxes. Beginning in 2026, TRS will offer a Roth option in which employees contribute after-tax dollars. Look out for more information from TRS this fall about this new Roth option.
To enroll in the TDA program sponsored by TRS, you must file a separate enrollment application and a separate designation of beneficiary form.
This column is compiled by Tom Brown, Victoria Lee and Christina McGrath, teacher-members of the New York City Teachers’ Retirement Board.