It is very important to choose a beneficiary or beneficiaries so you can be sure that if you die while you are still working for the New York City public schools the person(s) you choose receives your death benefit, instead of leaving it up to the courts. You need to designate beneficiaries for both your pension and your Tax Deferred Annuity, and remember to keep your designations up to date if circumstances change. You can view or change your current beneficiaries for your Qualified Pension Plan (QPP) and TDA accounts by logging in to the TRS website at www.trsnyc.org. BERS members may call 929-305-3800.

Being in the retirement system gives you the security of knowing that if you complete the minimum requirements you will receive a monthly pension allowance for the rest of your life after you retire. If you also enroll in the Tax-Deferred Annuity Program, you can put aside money from your salary and not pay taxes on that income until you draw on the funds; at retirement, these savings could fund a separate annuity. TRS members also can take loans from both the pension plan and the TDA program. If you become disabled before you are eligible for a regular service pension, you can receive a disability pension. Finally, if you die while you are still in service, your beneficiary can receive a death benefit.

First, your contributions are deducted from your paycheck before taxes are taken out; as a result, your current taxes are lower. (For New York residents, this includes federal, state and local taxes. Please check with your accountant about state taxes if you are not a resident of New York State.) Furthermore, taxes are deferred on both your contributions and your investment return; therefore, more of your money remains invested, and your money grows faster than it would in a comparable investment that isn’t tax-deferred. Finally, taxes are payable at the rate charged when you withdraw the funds, a rate that may be lower than your tax rate during your peak earnings years. Another important benefit is that your contributions are made through payroll deductions; this makes saving for your retirement automatic and convenient.

Tier I — those who joined TRS before July 1, 1973.

Tier II — those who joined TRS after June 30, 1973 and before July 27, 1976

Tier III — those who joined TRS after July 26, 1976 and before September 1, 1983

All Tier III members may retire under Tier IV.

Tier IV (age 62) — those who joined TRS after August 31, 1983 but prior to Feb. 28, 2008.  Many Tier IV members have opted into the 55/25 plan.

Tier IV (55/27) — those who joined after Feb. 28, 2008 but prior to April 1, 2012.

Tier VI — those who joined the retirement system after March 31, 2012.

Your pension is based on a complex formula that includes such factors as your date of appointment, your years of service, your age at retirement and your final average salary. You are entitled to an individual preliminary pension consultation any time before you retire to answer your questions and get an estimate of your pension payments and other benefits. Call your UFT borough office for an appointment.

If you resign and want to withdraw your pension funds, including the interest earned, you may be able to do so, depending on how long you worked and contributed. However, there may be several other choices available to you. You may be able to continue your membership and receive a pension allowance in the future, or you may transfer to another eligible retirement system, or wait a while to make a final decision. The union strongly recommends that you contact a pension consultant in your UFT borough office if you leave the school system or are thinking about it. The TRS also has numerous publications that contain details of the options available. Go to www.trsnyc.org to read or order one or write to TRS, 55 Water St., New York, NY 10041. BERS members can go to www.nycbers.org, call 929-305-3800 or write to BERS at 65 Court Street, Brooklyn, NY 11201.

If you have a username and password on the TRS website at www.trsnyc.org, you can enroll in the TDA Program online at any time. When you enroll in the TDA Program, you should also designate a TDA beneficiary, which is available on the TRS website. If you are a member of BERS, call 929-305-3800.

You may be eligible for a TDA loan if

• you have participated in the TDA Program for at least one year;
• you are an in-service member, or you are on a leave of absence, or you have TDA Deferral status;
• you are not in default on an existing TDA loan.

You may learn whether you are currently eligible to take a loan by logging in to the TRS website at www.trsnyc.org.

You may be eligible for a loan from your pension fund account (Qualified Pension Plan or QPP) if:

• you are either an in-service member or on a leave of absence,
• you are not in default on an existing pension loan.
• as a Tier I or II member, you have at least three years of TRS membership service; OR
• as a Tier III, IV or VI member, you have at least one year of TRS credited service.

You may learn whether you are currently eligible to take a loan by logging in to the TRS website at www.trsnyc.org.

The TRS Passport Funds provide six investment offerings:

• The Fixed Return Fund offers a guaranteed rate of return set by the New York State Legislature. The current 7 percent annual rate is guaranteed in accordance with applicable laws.
• The Diversified Equity Fund invests primarily in U.S. equities. The fund may also invest in international equities and other investments that may dampen the volatility of an investment 100 percent in equities. The objective is to achieve a rate of return comparable to the return of the broad equity market.
• The Balanced Fund is a moderately conservative investment option that include exposure ot bonds and stocks. The objective is to seek curent income and some capital appreciation. The Balanced Fund began as of Jan. 1, 2018 and was preceded by the Bond Fund from 2012-17 and the Stable-Value Fund before 2012.
• The International Equity Fund primarily invests in non-U.S. markets traded on a variety of stock exchanges and denominated in a variety of currencies around the world. The objectives are to provide long-term capital growth and to achieve a rate of return comparable to the return of the non-U.S. developed equity market over a full market cycle.
• The Inflation Protection Fund invests in mutual funds and/or directly in assets that include but are not limited to commodities, real estate securities, and inflation-linked bonds. The objective is to provide, over a full market cycle, a real rate of return that exceeds inflation.
• The Socially Responsive Equity Fund primarily invests in mutual funds and/or directly in U.S. equities. The fund attempts to avoid companies that receive a significant portion of their revenue from alcohol, tobacco, nuclear power, or weapons. The objectives are to achieve positive long-term capital growth and earn a rate of return comparable to the return of the broader equity market while reflecting social priorities.

For more detailed information about each fund, consult the "Passport Funds" section of the Teachers' Retirement System website at www.trsnyc.org and the annual TRS publication Fund Profiles. The BERS TDA only offers the Diversified Equity and Fixed Return Funds.