Employer-sponsored retirement plans remain the most important vehicle outside of Social Security for providing retirement income to working Americans. But a large share of U.S. workers have no access to a retirement plan through their employer, the executive director of the National Institute on Retirement Safety testified in a recent congressional hearing.

So, it is no surprise that despite the stock market recovery over the last few years, most U.S. households aren’t making progress toward improving retirement security, as shown by a new Federal Reserve survey of consumer finance. Even worse, many workers are losing ground.

But while pensions are eroding for many working families in our nation, UFT members continue to have access to an excellent defined-benefit pension plus a voluntary Tax-Deferred Annuity program. Together, these could well become your greatest fiscal asset down the line.

Among the few Americans who still have the protection of a defined-benefit pension, many are not knowledgeable about their plans. They may not know, for example, how long they must work to become vested or how much money they can expect in retirement.

In contrast, UFT members who take advantage of our union’s pension services are much more knowledgeable. The UFT seeks to keep you informed by supplying the following services:

• this column, which appears in each 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 questions by phone
• boroughwide meetings on Tax-Deferred Annuities and other current issues
• the Ready-or-Not program for members who are five to 10 years from retirement
• pension clinics for those who are two to three years from retirement
• a final consultation to give detailed information to members about to retire
• three teacher-members of the Teachers’ Retirement Board who are there to represent you
• up-to-date information on the union’s website at www.uft.org/our-benefits/pension.

Keep a pension file

Every UFT member who is in the Teachers’ 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:

• a copy of an up-to-date designation of beneficiary form for the Qualified Pension Plan and, if you participate in the Tax-Deferred Annuity program (and we hope you do), a separate TDA designation of beneficiary form;
• your most recent Annual Benefits Statement, which, among other things, has a record of your credited service and a listing of your beneficiaries;
• your most recent Quarterly Account Statement; and
• any other documents relevant to your retirement benefits, such as a letter concerning a pension tier change and other correspondence from the Teachers’ Retirement System.

New teachers: Enroll in TRS

Whether you are a teaching rookie or already have a few years under your belt, it’s important that you make time for a few simple steps that will help you build a substantial financial future through the benefits of the Teachers’ Retirement System. The early stage of your career is the time to lay a solid foundation for a secure retirement.

All newly appointed teachers should have already received a package in the mail. It’s a welcome kit for you to enroll in the TRS.

Although regularly appointed teachers are automatically members of the TRS, completing the forms in this kit in a timely fashion will ensure: family protection, if you were to pass away while in active service; income protection, if you were to become disabled and unable to work because of an accident in the line of duty; and a financially secure retirement if you remain a career teacher.

Enrolling is easy and relatively painless. Delaying enrollment may affect these benefits for you or your beneficiaries.

Here’s what is included in the kit and what you should do:

• a copy of “Your TRS Membership Overview,” which summarizes the provisions of TRS membership.
• a TRS enrollment application. You must complete and submit as soon as possible the TRS enrollment form to take full advantage of the protections that go with TRS membership.
• a TRS brochure “Enrolling in TRS,” which gives important information about your specific membership tier.
• a QPP (Qualified Pension Plan) Designation of Beneficiary form. This form tells the TRS whom you wish to receive your death benefit, which after a year of credited service, quickly grows to three years’ salary. You many change your beneficiary as your life situation changes due to marriage, divorce or children.
• a TDA enrollment form. The Tax-Deferred Annuity program is a voluntary, tax-favored retirement account that supplements your pension.
• a TDA beneficiary form. If you are ready to participate in this additional program, be sure to file this form.

Make copies of all the completed forms for your personal file. Then send your completed forms, along with proof of your date of birth, to Teachers’ Retirement System, 55 Water St., New York, NY 10041.

Call the TRS at 1-888-8NY-CTRS (1-888-869-2877) or speak to a pension consultant in your UFT borough office if you have not yet received your welcome kit.

Paraprofessionals who have not already done so should file Teachers’ Retirement System enrollment applications.

If you previously worked as a per diem substitute teacher or were a member of the Board of Education Retirement System (BERS) or another New York State public pension system, you may be eligible to reinstate to an earlier membership date with the TRS and to purchase or transfer prior service and funds to the TRS.

Nonappointed pedagogues, part-timers and those in other titles such as occupational and physical therapists, day-to-day substitutes and substitute paraprofessionals who are eligible to join the Board of Education Retirement System (BERS) should enroll by calling BERS at 1-718-935-5400.