Anyone who has participated in a UFT pension clinic or our Ready-or-Not program knows the importance of preparing early for retirement. But you may not realize that your Annual Benefit Statement (ABS) from the Teachers’ Retirement System is also a retirement planning tool.

On your annual statement, give special attention to Page 2, which reports your total service credit and, for Tier IV members, any service credit purchase plan or buyback that is under way. You should check this carefully to make sure your credited service is accurate and that you will finish the credit service plan by your retirement date. Check now to avoid problems later.

If you will be eligible to retire within five years, the annual statement also includes projections of your retirement benefits. You are encouraged to use the TRS website’s online calculator to estimate your benefits.

If you have any questions about your Annual Benefit Statement, you may submit an online inquiry through the secure section of the TRS website or by filing an ABS inquiry form (code SD12). By checking this statement now, you will make your retirement process go more smoothly.

TDA enhancements add flexibility

The new year brings significant improvements to the Tax-Deferred Annuity (TDA) program, including greater flexibility for participants. Below are highlights of some recent and upcoming changes:

Faster withdrawals: Members taking withdrawals from their TDA accounts now receive their funds more quickly — in fewer than 45 days for most requests. If the withdrawal is taken only from the Fixed Return Fund, payments will be issued within 15 days in most cases. This is much faster than the 60 to 90 days it previously took to receive withdrawals. Program participants will also soon be able to submit withdrawal requests online by accessing the secure section of the TRS website once this feature is available.

One-month investment changes: TDA participants now have the option to effect investment election changes within one month. Previously, conversions of TDA funds had to spread out over three, six, nine or 12 months. The one-month option is available for changes that take effect on or after April 1, 2014. If you want a change in investment elections effective April 1, you must apply for it by March 1.

Even more enhancements to the TDA program are planned for the coming months. Stay tuned by checking the TRS website’s news bulletins at www.trsnyc.org.

TRS current events

Quarterly account statements for the fourth quarter of 2013 will be available for in-service members in February. Members may view them online and may also receive them by mail. Your 2012 and 2013 annual statements are now available online.

TRS will be closed for Presidents Day on Monday, Feb. 17. It will be open the rest of that week.

Insurance to consider

To help secure your future, it is important to consider a variety of insurance products to protect you from unpredictable and possibly expensive drains on your assets.

Here are some types of insurance available to you because the UFT has negotiated for an outstanding array of health-related insurance benefits: medical, hospitalization, prescription drug, optical and hearing-aid.

Other health-related insurance is voluntary and made available through NYSUT, including: disability, catastrophic major-medical and long-term care.

To learn more about NYSUT member benefits or to enroll, call 800-626-8101 or go to membersbenefits.nysut.org.

Members should also consider life insurance in conjunction with the death benefit provided by TRS and the life insurance benefit provided by the UFT Welfare Fund.

An additional form of insurance, liability insurance, is required for members who drive and should be strongly considered by members who own property. In cases where another person suffers bodily injury or property damage, this insurance provides money that you could be legally obligated to pay. The insurance may also cover any legal expenses you incur.

Auto insurance and homeowner’s insurance are examples of liability insurance. A potential concern is that these types of insurance usually have limits on coverage that are too low to fully protect you against serious accidents. Many settlements are in the hundreds of thousands or millions of dollars. That could put your wages and assets at stake, although in some states retirement savings and pensions may be legally protected from liability claims against the holder.

One possible solution to consider is an umbrella insurance excess liability policy that pays for settlements and legal fees above your insurance limits.

Many financial experts say an umbrella policy is a must for those with significant net worth. This insurance can stop an accident from depleting your assets. A typical homeowner with two cars can get an umbrella policy that pays up to $1 million over your basic homeowner’s and auto insurance policies for about $250 to $400 per year. Depending on your assets, you may want a policy paying more. You should check with your homeowner’s and auto insurance providers for more information.

Free credit reports

Since September 2005, the three national credit agencies have been required to give people free access to their credit reports. Recent thefts of consumer data from Target and Neiman Marcus show the importance of checking personal credit reports to ensure against identity theft. These recent security breaches should also be of concern to any members who have shopped at either of these department stores recently.

Each of the three credit agencies — Equifax, Experian and TransUnion — are required to send you one free credit report each year. It is important to check the reports for errors or anything that might indicate identity theft or that could lead to your credit rating being lowered and your qualifying only for high-interest loans. Errors must be corrected as soon as possible.

Remember that many different people and businesses look at credit reports, including landlords, loan companies, insurance firms, credit card companies and stores where you request credit accounts. It is very important to know what your report shows and that it is accurate. Experts recommend you request a free report from one of the three agencies every three months.

The official website for free credit reports is www.annualcreditreport.com. Be aware that more than 100 other websites try to mimic the official website but charge fees that are often hidden and ongoing.

The actual official website has a secured system that allows you to provide identifying information and get a report immediately. If you do not wish to use the website, you can get the report by calling 1-877-322-8228. It takes about 15 days to get a report requested by phone.