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I missed the pay cut

October 22, 2007 am31 6:41 am

the UFT negotiated a cut in take home pay for the teachers who get hired next year

  • x: Wait, there’s more. You missed the cut in take-home pay.
  • jd2718: 1.85% for those who opt in, on top of the 3% for the first ten years. Oh, I get it, 1.85% for all new hires. But that goes to the pension.
  • x: The pension that most of them never see. How many make it to 5 years? How many get close to 25?
  • jd2718: Oh.
  • x: You should write about how the UFT just negotiated a cut in take home pay for all of our new teachers that get hired next year!

So that’s what I am doing. Writing about the deal. It’s in the works. Randi even got a plebescite-approval of her president’s report at the DA (maybe to head off any organized objections before they arise).

So me writing won’t fix anything. But here goes: We just negotiated a pay cut for next year’s teachers, with full knowledge that most will not benefit from it.

Ouch. Who’s out there looking out for next year’s teachers? Who’s looking out for the future of the profession?

from → Teacher Pay, Teachers Unions, UFT, United Federation of Teachers
10 Comments leave one →
  1. Jose permalink
    October 22, 2007 am31 7:03 am 7:03 am

    not a g_ddamn anybody …

    Reply
  2. Christina permalink
    November 16, 2007 pm30 8:58 pm 8:58 pm

    I believe that teachers who leave before vesting can withdraw their contributions, plus interest they earned. It’s a cut in take-home pay, but not lost $ for those who leave early.

    Reply
  3. jd2718 permalink*
    November 16, 2007 pm30 9:15 pm 9:15 pm

    So there’s no harm to those who leave before 5 years? That is an important clarification, thank you.

    And for someone who leaves after they are vested, but early? (say after 10 years)

    And for someone who starts age 25, and works to age 55? I think that’s the group who simply loses out.

    Reply
  4. Christina permalink
    November 28, 2007 pm30 7:39 pm 7:39 pm

    OK, here is a link to the NY TRS brochure that covers some of these issues: http://www.trs.nyc.ny.us/brochure/Brochure13.pdf

    I believe that the contributions also earn 5%, so anyone withdrawing before vesting would get their contributions plus 5% interest, so in my opinion they are not losing anything.

    If they get a job in NY but in the suburbs, they can transfer their membership whether they are vested or not. That would mean 2 years service credit in NYC gets you 2 years in the state pension plan.

    Vested but leaving before 10 years–I think you have a choice of withdrawing or taking early retirement. I’m not sure, but I think after 10 years you can no longer withdraw, and must take early retirement, or possibly deferred retirement.

    If you do deferred, it means you don’t collect until you reach 62(or whatever the age is in the plan), but you get full pension based on your service credit(i.e. 1 2/3 % for every year you get service credit for).

    I do think the start at 25 retire at 55 group loses out, but I’m not really an expert–just an over analytical person considering teaching! I have an interview for the NYC teaching fellows in Dec., and I like to know everything I can about what I’m getting involved in.

    I have some other comparisons about NJ, NY, and CT pensions, income taxes, and pension benefits I’ll share with you if you’re interested.

    Reply
  5. jd2718 permalink*
    November 29, 2007 am30 7:58 am 7:58 am

    Thank you very much.

    And yes, if you have more info, please post links, or e-mail them to me at [thisblogname] [at] [gmail] [dot] [com].

    We could always use more accurate information.

    Reply
  6. Scott permalink
    February 2, 2008 am29 1:18 am 1:18 am

    does being vested with 5 years mean you will be entitled to health insurance from the city when you start to recieve the payout of your pension (assuming you leave the system between 5 and 10 years)

    Reply
  7. Suzanne permalink
    May 19, 2008 am31 12:19 am 12:19 am

    I am unclear..if I am a teacher in NYC who wont have 25 years until I turn 56 does that mean I won’t be elligle for 55/25 and have to work until i have 30 years or are age 62?

    Reply
  8. jd2718 permalink*
    May 19, 2008 am31 1:55 am 1:55 am

    If you buy into the 55/25, I believe you can retire at age 56 and 25 years.

    There are fact sheets available: https://www.uft.org/member/money/financial/5525/55-25qa/

    A second round of meetings is scheduled: https://www.uft.org/member/money/financial/5525/55-25_boro_meetings/

    Inform yourself. The opt-in period ends August 25, 2008.

    Reply
  9. jd2718 permalink*
    May 19, 2008 am31 1:56 am 1:56 am

    Scott, I am not qualified to answer your question. Try your UFT borough office.

    Reply
  10. lam8x permalink
    November 9, 2008 am30 3:33 am 3:33 am

    No, it really is a pay cut for us new teachers. Buried deep within an archived issue of PensioNews on the UFT website:

    “19. What happens if I opt in and then resign or retire without qualifying for the 55/25 plan?

    Generally, you will not be entitled to receive any refund of your additional member contributions in the 55/25 plan if you voluntarily quit or retire before you are eligible for the plan.”

    http://www.uft.org/member/money/pension/pensionnews/55_25Update/story1/

    This was a bad deal for the vast majority of us who will not last 27 years in the system, and who were never offered a say in the decision.

    Reply

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