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Nyc Teachers Retirement System

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I'm having trouble sleeping with all this talk of pension reform. Been a NYC teacher for 20+ years and plan to retire in 4-5 years at age 62. Hoping that my pension, TDA and social security will be enough to live a simple life. Will be relocating to a state with no state or local taxes to help stretch the money. Does anyone know if I will pay NY taxes on my pension benefits and TDA if I move to another state? Lastly, any insight on the future of the NYC Teachers Retirement System would be greatly appreciated. Stay well.

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Hi and welcome to the site.

 

I live in Virginia, so I probably can't comment on New York. What I can say I think restructuring is definitely in the air everywhere. I'm pretty much in your situation. I have 5 years to go until retirement and I'm scared to death I won't get there. I had to take a pay cut this year, with no raises the last three years. I teach an elective and with more and more academic standards being imposed its hard to get good numbers. My ship may not come in. With 25 years in, tenure means nothing because Virginia is a conservative state

and the Union is a weak entity. Thats why I am taking action on my own and not counting on a retirement pension-just in case.

 

Didn't mean to sound so gloomy. Sorry!!

 

 

In Virginia all NEW teachers will be paying 5% of their paycheck toward funding their retirement. Amazingly, our local school board has picked up the tab for now. No other changes for tenured teachers so far in terms of retirement but all sorts of attacks on teachers are in the news. The prevailing attitude is now that teachers don't deserve a pension plan. Just like Steve Shullo said on this site a while back, when things are good teachers and teaching are looked down on as low paying jobs. When times are tough suddently

we are attacked for having a security net.

 

I'm sure you'll get more specific responses. In the meantime hold your chin up and save in your 403B and Roth as much as you possibly can. If you have questions about that

lets us know.

 

Respectfully

 

Tony

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I'm having trouble sleeping with all this talk of pension reform. Been a NYC teacher for 20+ years and plan to retire in 4-5 years at age 62. Hoping that my pension, TDA and social security will be enough to live a simple life. Will be relocating to a state with no state or local taxes to help stretch the money. Does anyone know if I will pay NY taxes on my pension benefits and TDA if I move to another state? Lastly, any insight on the future of the NYC Teachers Retirement System would be greatly appreciated. Stay well.

 

 

Hi Virgina,

Like Tony, I don't live in NYC; I live in California so I can't speak for NYC. My first suggestion is to make an individual appointment your NYC pension counselor. This person will have your entire pension record and he or she can estimate what your benefit will be when you retire in 4-5 years. They also can answer if you have to pay income taxes in NY if move out of state. If you have already done this and still are not satisfied, make another appointment. Your questions are on the minds of many teachers. I saw my individual consultant several times as I approached retirement. I retired two years ago.

Make another appointment at the Society Security Administration office near you. Once again, they have your life record and can estimate your benefit.

With real numbers, you can find out if you can retire when you want to.

 

As far as the future of the NYC Teachers Retirement system? Heck, if your system goes down, my retirement system will gone down too and we are all doomed and I don't think thats going to happen. Get some sleep and make those appointments to get those numbers. Let us know if feel, better, worse or the same after your get this information.

 

 

Steve

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I'm having trouble sleeping with all this talk of pension reform. Been a NYC teacher for 20+ years and plan to retire in 4-5 years at age 62. Hoping that my pension, TDA and social security will be enough to live a simple life. Will be relocating to a state with no state or local taxes to help stretch the money. Does anyone know if I will pay NY taxes on my pension benefits and TDA if I move to another state? Lastly, any insight on the future of the NYC Teachers Retirement System would be greatly appreciated. Stay well.

 

 

Under federal law NY taxes will not apply if you move to another state. The NYC teachers pension system benefits are ultimately guaranteed by the taxpayers of NYC which is why NYC residents pay high state and NYC taxes of up to 12.6% of income. Also NYC taxpayers guarantee the 7% return on the NYC teachers 403b fixed annuity. With these great benefits plus social security why would NYC teachers want to leave NY state when they retire since their pensions are exempt from state and city income tax?

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Make another appointment at the Society Security Administration office near you. Once again, they have your life record and can estimate your benefit.

With real numbers, you can find out if you can retire when you want to.

 

 

Steve

 

 

Steve:

 

There is no need to waste time at the Social Security office. Estimated SS benefits can be calculated on line at the Social Security website 24/7.

 

Also NYC pension reps cannot give advice on taxation of benefits in other states.

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Tony, I don't mean to sound like an attack here but just trying to understand the difference in benefits across states. My wife teaches Spanish in Nebraska and from day they have had to contribute 7.28% of her paycheck to the pension plan. The district also sent roughly 7.8%. Last year they increased to to 8.28% and around 8.8% for these two years. With that plan they are on the rule of 85 schedule for full retirement benefits.

 

How does that compare to VA?

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Big Ben,

 

I have never contributed to the VRS Virginia Retirement System that I'm aware of. No deductions in my check or my wife's check. Thats all I can tell you other than all new employees will now have to pay 5% out of pocket monthly. There is a two tier plan now. I'm on the older tier. Actually its probably a good idea you brought this up. I need to see how all this works. I know our final; compensation is only 51% of our income based on the average income we make the last three years. I bet your wife's final compensation is higher.

 

 

I will get back to you on this. It does sound weird that I'm not showing any contributions personally but that my online account shows a monetary balance I can claim If I decide to bail out and not want the monthly benefit once I retire.

 

Tony

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BiG Red,

 

Sorry I called you Big Ben.

 

Here is our Virginia website. Click on "Your Benefits" towards the bottom of the page-its a pdf file. It does look like my employer has picked up out 5% tab over the years. I didn't even know.

 

 

http://www.varetire.org/

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What is the rule of 85?

[/quote

 

Tony I believe the rule of 85 is any combination of age and years of service equal to 85 and you qualify for a full pension.

 

Rich

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No problem on the Big Ben, I don't go to night clubs with underage women(Ben Rothleisberger, Pittsburgh Steelers quarterback)

 

Here is a great link to the Nebraska School Teachers Plan. I think it can explain the rule of 85 better than I. In my wife's scenario if she retires immediately @ 55 she would get a benefit of about 65% of pre-retirement income. If you had any more questions just let me know.

 

https://npers.ne.gov/whalecomfb0318c98356c776ad65/whalecom0/SelfService/public/planInformation/school/schoolPlanInfo.jsp

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My wife does carry a balance and gets a statement annually that shows only her portion because the school portion is only available @ retirement. They credit it at some measly interest rate.

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