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Resolution calling for the restoration of the 8.25% fixed return rate for UFT members with TDA accounts

WHEREAS, in 2009 the fixed return rate on UFT members’ Tax Deferred Annuity (TDA) accounts was reduced by 1.25%, from 8.25% to 7%, and

WHEREAS, the 1.25% difference can amount to over $1M in diminished earnings over the course of a UFT member’s enrollment in a New York City Teachers' Retirement System (TRS) or Board of Education Retirement System (BERS) TDA, and

WHEREAS, the TDA is one of the "three pillars" of our retirement portfolio (Defined Benefit Pension, Social Security, TDA), and

WHEREAS, no other union members who contribute to TRS or BERS (e.g., DOE administrators and CUNY employees) saw a diminishment in the fixed return rate of their TDAs and, to this day, maintain the 8.25% return rate that UFT members lost in 2009, and

WHEREAS, the Retired Teachers Chapter is committed to restoring the 8.25% fixed return to TDA accounts, be it

RESOLVED, that the RTC asks its delegates to bring the following to the DA on behalf of the RTC, and

RESOLVED, That the UFT launch a comprehensive campaign to restore the 8.25% fixed return rate for UFT members that currently have, or who may one day open, a TRS or BERS TDA; and

RESOLVED, that the UFT develop and implement a strategic plan that engages elected officials and both in-service and retired UFT members to achieve this critical objective; and

RESOLVED, that to protect and ensure the financial security of both in-service and retired UFT members, the UFT will negotiate with the City and lobby the state legislature for legislative changes that will restore the TDA fixed return rate to 8.25% for all UFT members.