The beginning of a year is a good time to consider the benefits you receive through the Teachers’ Retirement System. It’s the perfect opportunity for reviewing files, throwing away old papers and resetting long-term and short-term financial goals.

All of us look forward to a financially secure retirement after a satisfying career. Our retired colleagues tell us our benefits make that goal so much easier. But not all TRS members are aware of all the protections and benefits to which they’re entitled.

Our in-service members:

• may contribute to a Tax-Deferred Annuity;
• have disability benefits;
• have a form of life insurance known as the “death benefit”; and
• may borrow money from their retirement accounts.

Our retirees receive a monthly pension payment, and most receive health insurance and Welfare Fund benefits. Just over 70 percent of our TRS members participate in the TDA program and derive extra income from that.

In this and future columns, we will review each of these protections and benefits. We’ll start with the different forms of disability retirement.

In-service members can sleep well at night knowing the union has their backs if they are seriously injured on the job or suffer a debilitating medical or emotional disability.

Accidents in the line of duty

If you are injured on the job (not due to your own negligence), you may be eligible for Accident Disability. New members as well as longtime employees are eligible. To apply, submit a personal report of disability as well as a report from your physician. You must apply to TRS for Accident Disability. The TRS medical board will examine you and decide whether to grant your request.

You must notify the authorities after the accident occurs. If you’re injured in an accident related to your job:

1. Talk to your chapter leader, who will refer you to the UFT pension department.
2. Report the accident in writing.

The deadline for reporting the accident depends upon which retirement tier you’re in and other factors. You can download additional information about accidents in the line of duty on the TRS website at www.trsnyc.org. Click on Forms/Tools in the menu bar.

The Tier IV or Tier VI accident pension benefit is equal to two-thirds of your Final Average Salary plus a payment based on any Annuity Savings Accumulation Fund you may have. The pension portion of your monthly benefit is tax-free. You’ll have to pay taxes on your annuity portion. This benefit lasts for your lifetime unless you recover.

UFT members who qualify for Accident Disability may also apply for Social Security Disability Insurance, sometimes referred to as SSI or SSDI. Tier IV and Tier VI members who qualify for Social Security can collect both their Accident Disability and Social Security.

Ordinary disability

Members with 10 years or more of credited service may qualify for another benefit: Ordinary Disability. This benefit is for those who suffer from a physical or mental condition that makes work impossible.

Frankly, this benefit is one of the most valuable that the UFT offers although we sincerely hope you never need to avail yourself of it. But it’s good to know it’s there.

To apply for Ordinary Disability, submit a doctor’s report and a TRS Ordinary Disability Retirement application. The TRS medical board examines you and decides whether to grant your request.

The Ordinary Disability benefit for Tier IV or Tier VI members is equal to either one-third of your Final Average Salary or one-sixtieth of your Final Average Salary multiplied by your years of total service credit, whichever is greater. You also will receive an annuity payment based on the balance of your Annuity Savings Accumulation Fund, if you have one.

UFT members with an Ordinary Disability retirement may also apply for Social Security disability. Tier IV and Tier VI members who qualify for Social Security may receive benefits through both Ordinary Disability and Social Security.

Lump-sum disability benefit

If you are diagnosed with a terminal illness and have a life expectancy of a year or less, in-service members may be eligible to receive Lump Sum Disability. This is the amount that would be paid to you as a death benefit if you died on your last day of service. If you take your benefit as a lump sum, you do not receive a retirement allowance and your survivors do not receive a death benefit.

Please note: Terminally ill members may be better off financially if they retire before they pass away. We urge members in this situation to contact a UFT pension consultant to help to determine what is best for them.

Death benefit

Members with at least one year of service also qualify for death benefits.

To ensure that the people you want to receive the financial benefits do so in a timely way in the event of your death, you must file a beneficiary form with TRS. This ensures your beneficiaries get their money as soon as possible. (See box above, to the right.)

Check your quarterly or annual TRS benefit statement, which lists your beneficiaries.