If you are planning to retire in the next year or two, now is the time to start preparing. It may seem early, but trust us, it’s not.
The UFT Pension Department is here for you to assist in your transition to retirement.
The decision to retire should be made only after careful consideration. Whether you’ve decided to retire or are still on the fence, the in-person and online pension clinics sponsored by the UFT Pension Department — and presented by one of the union’s TRS trustees or a UFT pension representative — are a font of information. We suggest you attend all the clinics for your pension tier.
If you are planning to retire at the end of June, you should:
Buy outstanding service credit: Purchasing additional credit for prior service generally increases the amount of your pension. You can find out from your most recent annual benefits statement or a recent total service letter from TRS whether you have any service credit available to purchase. Contact the Board of Education Retirement System (BERS) for that information if you are a BERS member.
Provide proof of birth date: Your pension system must have proof of your date of birth in order for you to receive a pension benefit. You may upload your date-of-birth documentation in the secure area of our website or mail it to TRS.
Choose a pension option: You have several payment options when it comes to how you receive your retirement allowance. All the options provide you with monthly lifetime payments, but each provides a different death benefit, payable to one or more beneficiaries. The maximum payment option pays you the most but does not provide for any beneficiaries.
Choose a TDA option: If you have a Tax-Deferred Annuity (TDA) program account in TRS or BERS, you can choose one of these three choices:
- Annuitize your account and receive an additional monthly payment;
- Roll over (or withdraw) your TDA funds;
- Elect TDA deferral status and leave your account with the pension system.
A retiree must make required minimum distributions (RMDs) from their TDA in the year they turn 73 years old.
Book a final pension consultation: When you have chosen a retirement date, you should schedule a final pension consultation. TRS members can call 212-331-6311 between 10 a.m. and 6 p.m. from Monday through Friday to make an appointment. During this meeting, your UFT pension consultant will help you complete necessary paperwork and provide you with detailed instructions on the procedure for submitting your retirement papers. If you let your pension consultant know your pension choice in advance, you may receive a personalized printout of your estimated retirement allowance calculated by the consultant. Keep in mind you are only entitled to one final consultation during your career. BERS members may call 929-305-3800 to schedule a final pension consultation directly with BERS.
Select beneficiaries: Your retirement payment option may provide for one or more beneficiaries in the event of your death, but you may also have other benefits that require designating beneficiaries.
Consider any pension loans: Retirement is the last opportunity to pay off a loan balance under the Qualified Pension Plan, and it’s also the last chance to take a new pension loan if you have an immediate financial need. Keep in mind that any outstanding loan balance at retirement will permanently reduce your monthly retirement allowance.
Get your pension payment electronically: If you are a DOE employee, your retirement payments will be deposited in the same account in which you receive your paychecks — unless you instruct TRS or BERS otherwise. When you file your retirement papers, you can change accounts or sign up for electronic funds transfer.
You must submit your retirement application to TRS/BERS at least one day, but not more than 90 days, before your effective retirement date. We strongly urge all UFT members to file their retirement applications in person at TRS or BERS — and start the process well in advance of their retirement date if possible.
Generally, your pension payments begin three to five months after your retirement date. You will receive advance payments from TRS until your pension is finalized. You will also receive a statement of benefits.
Once you receive written confirmation of your retirement date from TRS or BERS, file with your payroll secretary either form OP-44 for termination pay or form OP-40 for terminal leave. OP-40 must be filed at least 30 days prior to the onset of your leave, or by June 1 if your leave begins in September.
File a health benefits application (form ERB) to waive or continue health insurance and check YES for the optional benefits rider to receive prescription drugs.
Don’t forget to enroll in the Retired Teachers Chapter and the union’s low-cost Supplementary Health Insurance Program (SHIP).
This column is compiled by Tom Brown, Victoria Lee and Christina McGrath, teacher-members of the New York City Teachers’ Retirement Board.