Thanks to the strength of the and its negotiating power, the salaries of UFT members employed by the Department of Education have regularly increased. When they retire, members receive a defined-benefit pension, employer-provided health insurance that eventually supplements Medicare and, for most members, income from a Tax-Deferred Annuity.

Few private-sector workers can look forward to such a secure retirement. Most Americans rely on Social Security for a good portion of their retirement income. Fifty-one percent of the workforce has no private pension coverage and 34 percent of the workforce has no savings set aside for retirement, according to 2015 Social Security data. Among those who are near retirement, the median balance in their retirement accounts is only about $12,000.

It is in that context that the National Conference on Public Employee Retirement Systems, the largest trade association for public-sector pension funds, proposed a new type of retirement plan aimed at providing private-sector workers who don’t have access to an employer-sponsored pension plan with a guaranteed, lifetime retirement income. (UFT Treasurer Mel Aaronson ended his term as president of NCPERS in May.)

The initiative, known as the Secure Choice Pension, would provide the flexibility and portability that today’s workers need while spreading investment risks and costs over a large pool of plan participants and employers. The AFT, the UFT’s national union, has passed a resolution in support of the plan.

NCPERS envisions the Secure Choice Pension as a true private-public partnership. States and local governments would set up defined-benefit pension plans for employees of private companies that do not offer retirement plans. Both the participating employers and employees would make regular contributions to the new pension plan.

Such a pension plan would have lower costs because of the economies of scale and other economic efficiencies available to large pension plans. It would also produce higher returns because the plan’s assets would be pooled and managed by professionals.

The AFT, a bipartisan group of state treasurers, other unions and Wall Street firms are part of an effort “to expand retirement security through access to pooled, professional asset management,” the AFT says on its website.

As a nation, we must do something about the increasing number of Americans who face financial insecurity when they stop working. The Secure Choice Pension is a bold and visionary proposal that would help address this urgent need.

See more information about the Secure Choice Pension, on the AFT website.

Summer pension services

During the summer, the UFT’s pension consultants are available for phone inquiries from 10 a.m. to 5 p.m., Monday through Thursday. Retired members should call 1-212-598-9536; in-service members should call 1-212-598-6866.

Only those people who need immediate attention may schedule in-person consultations during the summer: for example, members who have been approved for disability retirement. Full service in the boroughs starts again when school reopens.

Teachers’ Retirement System hours are 8:30 a.m.–5 p.m., Monday through Thursday, and 8:30 a.m.–1 p.m., Friday. TRS is located at 55 Water St., Manhattan. If you plan to visit TRS, please bring a government- or school-issued photo ID. The phone number at TRS is 1-888-869-2877.

We have arranged for the Department of Education Health Insurance Unit to set up temporary headquarters at the TRS Manhattan office from June 9 through June 30. Retiring members may submit retiree health insurance (ERB) forms from 9 a.m. to 4:30 p.m.

Variable Annuity

	A Diversified Equity	B Bond	C International Equity	D Inflation Protection	E Socially Responsive
March	72.947	17.339	8.604	9.671	13.402
April	77.546	17.418	9.271	10.006	14.379
May	77.866	17.391	9.431	10.226	14.362
The unit value is computed during the latter part of each month. This table reflects the most recent values.