Welcome back from what we hope was a relaxing, restful summer. With the start of a new school year, we are excited to bring you information you need to secure your future.

As this is the second year of our new contract, eligible members will receive the first installment of their retroactive pay in October. Our increased contractual salaries translate into higher lifetime pension payments when you retire.

According to retirement experts, retirees need income equal to at least 80 percent of their preretirement earnings together with high-quality health insurance to be assured of a satisfying, enjoyable retirement.

About 55 percent of U.S. households of people age 55 to 65 have less than $25,000 in retirement savings, and 41 percent have zero saved for retirement, according to the U.S. Government Accountability Office.

The stock market crash in 2008 and earlier drops in 2001 through 2003 tore a hole through many Americans’ retirement savings accounts. Even with the recent gains in the stock market, many people have yet to recover fully from those earlier losses. As a result, more people are staying in the workforce longer, unable to afford to retire.

The UFT has made sure that a dignified level of retirement security is available to all UFT members who are career employees of the 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 for each year of service.
• Social Security.
• Tax-Deferred Annuity (TDA), which is a voluntary retirement-savings program with tax advantages.
• Health insurance and UFT Welfare Fund benefits.

What is TRS?

The Teachers’ Retirement System was established in 1917. It has since grown into one of the country’s largest pension systems, serving more than 200,000 in-service members, retirees and beneficiaries. TRS membership is available to certain educators who work for the New York City Department of Education, the City University of New York and participating city charter schools.

All TRS members participate in the Qualified Pension Plan, which provides the security of a guaranteed, defined-benefit pension — a rarity these days for U.S. workers. In addition, the TDA program offers members the option to build additional retirement income.

The main benefits of TRS membership include:

• A guaranteed retirement allowance through the Qualified Pension Plan upon meeting certain age and service requirements.
• Disability retirement benefits upon meeting certain requirements.
• Death benefits for your surviving beneficiaries.
• The opportunity to set aside additional funds for retirement and to defer taxes on your contributions and earnings by joining the TDA program.
• Loans through both the Qualified Pension Plan and TDA after your first year of credited service or TDA participation, respectively.

TRS membership and the Qualified

Pension Plan

TRS membership is mandatory for most DOE educators. It is optional for paraprofessionals employed by the DOE. Charter schools may choose to participate. Paraprofessionals who want to join must fill out an enrollment application and send it to the Teachers’ Retirement System.

As a TRS member, you must contribute to the Qualified Pension Plan through automatic deductions from your paycheck. Your contribution rate is determined by your date of membership in the retirement system.

All TRS participants belong to a specific tier that is generally determined by the date they became members of the retirement system. Benefits may vary by tier.

In general you belong to:

• Tier I — if you last joined TRS before July 1, 1973.
• Tier II — if you last joined TRS after June 30, 1973, but before July 27, 1976.
• Tier III — if you last joined TRS after July 26, 1976, but before Sept.1, 1983.
• Tier IV — if you last joined TRS after Aug. 31, 1983, but before April 12, 2012.
• Tier VI — if you joined TRS on April 12, 2012, or thereafter.

Your eligibility for a retirement allowance under the Qualified Pension Plan and the amount of your benefits will depend on what is called your total service credit. If you worked for a New York City or New York State public employer before joining TRS, you may be able to obtain credit for that prior service. Please contact TRS at 1-888-869-2877 for more information about your service credit, other types of service that may be eligible for pension credit, the procedure for claiming your credit and any costs involved. Be sure that TRS is aware of any prior or transferred service credit you may have.

You can also get more information on the retirement system’s website at www.trsnyc.org.

Retirement may seem far away. But some retirement system benefits are available to you while you are still in service. This column will in coming issues give you details on:

• Death benefit provisions
• Disability retirement provisions
• The TDA program
• Loan provisions
• Service credit