This one borders on the bizarre.
The United Federation of Teachers and the Department of Education when they negotiated our recent contract didn't think so many UFT members would retire. They under-funded the pool of money needed for full retroactive cash payments for people who retired by June 2014.
Apparently, both sides are surprised that so many people who were eligible to retire this June decided to actually leave.
According to Capital NY:
The two sides need to agree on how to pay union members who retired before June 30, 2014, because more teachers left than the contract had accounted for, both sides confirmed.
City Hall had set aside $180 million to pay lump sum retroactive wages to retiring teachers—a figure the union agreed to in June when it signed off on the nine-year deal that runs from 2009-2018. But the higher-than-anticipated retirement rate means the city may need to increase that total and negotiate how retroactive payments will be made to the additional retirees.
Capital adds:
Capital previously reported 2,263 U.F.T. members applied for retirement in June, up from 1,484 applications in June of last year, according to figures provided by the New York City Teachers' Retirement System. (The figure includes CUNY instructors who are not covered by this contract.)
We here at ICE are shocked, just astonished (sarcasm alert) that so many people decided to leave and take the money up front now.
Here is the possible thinking of a teacher eligible to retire:
"Let's see I can retire now and get over $30,000 in back pay right away or I can retire and get it piecemeal without interest up through 2020 or I can stay in the system and be abused for a little longer and wait until 2020 to get all the money they owe me." After about five seconds of contemplation, the teacher concludes: "How do I get to 55 Waters Street to file my retirement papers and when will the total payment be put in my bank account?"
Yes, for some people the tax implications made them want to wait to get the payments they are owed but that was only a few.
What is truly scary is these people in the UFT and city government have a real say over so many aspects of our lives. They can't even figure out that if they throw money in front of beleaguered teachers who can retire and have often been abused in this system, most of them are going to take the money and run.
Now it will be interesting to see if the city tries to weasel out of paying the money now as Perdido Street School speculated they might do and then how will the UFT respond at that point? Another giveback?
This is very scary. The City Controller- Stringer kept insisting that this June 30 retiree deadline was important due to city budget restrictions. Let's see how Mulgrew uses COPE influence in Albany to make up any shortage in funds.
ReplyDeleteWhat about the hundreds (or maybe thousands) of teachers who quit or were terminated by the DOE during the last 4 years? Are they not entitled to the back pay as well?
ReplyDeleteOnly if they win their lawsuit
DeleteI'm not sure how accurate this is -but the union may also be forced down the road to re-negotiate healthcare savings issues too.
ReplyDeleteMembers rightfully complain that important rights(ATR security) weren't put in the contract-but now things that are already part of the contract and were voted on-are in danger of not being honored. This is the new trend.
The new contract bent over backwards to discourage anyone eligible to retire to stay on. This was thoroughly planned, down to the stipulation that anyone wishing to see the lump sum, had to retire by June 30, thereby ending their career with just two more months of Welfare Fund prescription coverage, rather than the three months that a July 1 retirement date offers. (Members are given three final months of prescription coverage including the retirement month. A June 30 date would have June as the first month, with two months remaining. A July 1 date provides all of July, August and September)
ReplyDeleteThe UFT and DOE knew exactly what they were doing when this deadline was put in place. Both sides had an approximate idea of how many members would take the plunge. This contract was crafted to get the senior teachers to leave. Leave they did.
Now the UFT and city are claiming that they didn't know this would happen.
One more big fat lie from the UFT and our "progressive" opportunist mayor.
Hmmm. So if this problem exists now, and deBlasio doesn't have the money to cover this, he will look like an idiot. But now Cuomo owes him big time (funny how the tables get turned in politics. So I expect a deal will be made. Because if it isn't, Mulgrew and Unity will not be getting that nice chunk of retiree votes.
ReplyDeleteBut there is still the medical which I am sure will be changing sooner to offset this retiree mess. Then that's a lot of in service votes not going to UNITY.
Oh the tangled webs we weave when practice to deceive!!
The solution is to reopen the $1 billion in no-bid contracts and consultants that Bloomberg saddled us with.
ReplyDeleteA good start would be to fire all of the networks and to terminate the TFA contract.
Those contracts are sacrosanct. Only the teacher' is subject to change. We won't fight
DeleteI may be wrong but shouldn't those who made a major life decision to retire because on a contractual agreement of lump sum retro at least get together and take this to PERB? It seems like a breach of contract to me. Think you are right about future changes in health care. Just love our union (extreme sarcastic tone intended)
ReplyDeleteBring on the battle !
DeleteOf all the possible options to consider, why do you think your union will "weasel out" of paying its members? Is that how believe your union operates?
ReplyDeleteShouldn't we take the attitude that retirees saw this contract as a good deal, versus a chance to get away from being "abused"?
Call a spade a spade!
DeletePiece asked if the city, not the union, would try to weasel out. Please read closely. Also, I would like to ask what school system you work in? Who among us is not feeling at least a little abused?
ReplyDeleteI retired in March 2013. Does this mean the promised retro money is now in doubt?
ReplyDeleteWe hope not
ReplyDeleteIt's time to watch "The Sting" starring Paul Newman and Robert Redford once again.
ReplyDeleteWith the UFT being stung as usual.
ReplyDeleteMake that UFT members. Leadership is never impacted.
DeleteAlready the UNITY party is saying this is a lie.... Of course!!
ReplyDeleteWhy did they confirm the story then?
ReplyDeleteUpon calling the TRS to ask how my retirement final average salary will be determined...I was told the TRS has not been given any information on calculating the back pay raises into the final average salaries for newly retired teachers. It seems we are not getting these retro raises counted into our pension calculations. When asked when this will happen, all I am told is we have no information. We were lied to. I would not have retired now if I was not gatting what I was promised. I was cheated out of Chapter 683 money, one month of welfare fund benefits and now this.
ReplyDeleteRetiring before June 30 if contract is ratified?
ReplyDeleteSpecial pension clinics will provide info to help you take necessary steps
May 15, 2014 New York Teacher issue
The UFT’s Pension Department will hold special group meetings in each borough beginning in early June to accommodate members who are making last-minute decisions to retire at the end of the school year in light of the tentative contract’s provisions on the retroactive payments.
The meetings will cover, in general terms, everything a member needs to do in order to retire. The dates, times and places of the meetings will be announced in early June and will be posted in the pension section of the UFT website and published in the June 5 issue of the New York Teacher. You will also be able to find out the dates and places of the meetings by calling your UFT borough office or the union’s Pension Department at 1-212-598-6866 or 1-212-598-6867 in early June.
Pending ratification, the contract provides that members who retire on or before June 30, 2014, will receive payment in full for the retroactive raises in one lump sum. Members who retire on or after July 1, 2014, will be paid the retroactive money on the same schedule as in-service members: beginning Oct. 1, 2015, and ending Oct. 1, 2020. In both cases, the pension calculation at the time of retirement will include the entire 8 percent rate increase arising from 2009 and 2010 and any other pay increases that occurred during a member’s employment.
Note to Medicare-eligible retiring members: If you are planning to retire on or before June 30 and you already are or you are going to be age 65 or older, you must sign up for Medicare Parts A and B at your local Social Security office now so this coverage will be in place on June 1. If you plan to retire after June 30 of this year, Medicare Parts A and B should be in place on the first of the the month in which you plan to retire.
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This article was originally published on UFT.org on May 7 at 4 p.m.
Let's see Mulgrew and company weasel their way out of this. There is clear evidence in their own paper on what the new contract meant to retired and future retirees.
ReplyDeleteJust called the UFT today, Oct 29th. The woman at the UFT said "we don't know. We are waiting for the city." The UFT is acting helpless regarding an all ready ratified contract. I retired in 2013 and am angry. I can't imagine how those who made the choice to retire on June 30th, on a lie, must feel. There is a meeting of the retiree chapter on Oct 7 at UFT in Manhattan. I am going. I should expect it to be packed or,should I not? As for in service members, if they lie to those (not me) who always vote in numbers and vote for Unity, how safe should you feel about your 2020 contract?
ReplyDeleteI am of course pro UFT.-Below is the original contract promise.
ReplyDeleteUpon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."
If a formula was established why did the DOE not set up a plan to inform the UFT they needed to set up a formula so the 180 million was shared equally rather than just a few members? .Did the UFT receive information on how the 180 million was distributed?
Did anyone get any money yet?
ReplyDeleteDid anything happen on Oct. 7th's Retiree Meeting in Manhattan? Any new info?
ReplyDeleteSomeone wrote on another blog that Mr. Mulgrew stated at the RTC General meeting that retirees should be getting retro by Thanksgiving.
ReplyDeleteHE DIDNT SAY THAT THEY WOULD GET THE RETRO BY THANKSGIVING, HE SAID THE NEGOTIATIONS WOULD BE SETTLED BY THEN
ReplyDeleteI think the mere fact that Mulgrew sent out an email(followed up by a snail mail) acknowledging indeed there was a snag and a resolution by Thanksgiving is progress! At least it's out in the open now. The phones must have been ringing off the hook at the UFT offices with retiree's calling.
ReplyDeleteLETS BE HONEST FOR A MOMENT,MOST TEACHERS ARE SELF HATEING MASOCHISTS ANYWAY, OR ELSE THEY WOULDNT ENTER OR STAY IN THE PROFESSION . SO THIS KIND OF MIS-TREATMENT IS WHAT THEY SECRETLY DESIRE ANYWAY , TO BE ABUSED OVER AND OVER,AND TO SHOW EVERYONE ELSE HOW THEY CAN ENDURE ALL THE SUFFERING HEAPED UPON THEM !!!
ReplyDeleteMost teachers have nurturing giving personalities who stay in the profession as we want to do something meaningful in our lives .Teaching is a very rewarding profession, observing students improve in their academic skills as a result of our teaching makes all our hard work worthwhile.The UFT has insured we have been treated well during our careers and in retirement.
ReplyDeleteI think I am going to be sick after reading the last comment.
ReplyDeleteGOOD
ReplyDeleteread this article today
ReplyDeletehttp://www.capitalnewyork.com/article/city-hall/2014/10/8554946/retired-teachers-still-awaiting-back-pay
http://www.capitalnewyork.com/article/city-hall/2014/10/8555817/city-wont-increase-reserve-retired-teachers
ReplyDeletesorry this is the link
If the fund is not going to increase, how will retirees get their retro pay? It is ridiculous waiting since June to get details of how much and when we will get the money
ReplyDeleteSince there were records of those who retired from 2009-2013 ,why didn't the DOE inform 2014 retirees once they reached the 180 million allotment?What are the legal rights of retirees in this matter. I would think 5 months interest on 180 million and money saved in salaries and medical coverage of retirees should help cover the error made by not informing 2014 retirees there was a problem before they accepted their retirement applications.
ReplyDeleteUEDOBVI LORD
ReplyDeleteTHE ONLY TEACHERS THAT HAVE A CAUSE OF ACTION FOR THE FULL RETRO ARE THE NEWLY RETIRED TEACHERS THAT RETIRED AFTER THE CONTRACT WAS RATIFIED BECAUSE THE RETIRED IN RELIANCE OF ITS TERMS. THOSE TEACHERS THAT RETIRED BEFORE RETIRED WITH NO KNOWLEGDE OR EXPECTATION OF THE RETRO NOR DID THEY VOTE ON SAID CONTRACT. AS A RESULT, ONLY THE NEWLY RETIRED TEACHERS MUST BE PAID THE RETRO IN A FULL ONR-TIME LUMPSUM, AND THE REMAINING REIRED TEACHERS CAN BE PAID AS THE BOARD/CITY SEE FIT.
The contract read
ReplyDeleteUpon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."Upon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."
Legally the contract should be followed previously retired teachers worked without raises.If the 180 million is distributed everyone should get 78% of what is owed them while the 50 million amount shortage worked out and settled in the future.
The contract read
ReplyDeleteUpon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."Upon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."
Legally the contract should be followed previously retired teachers worked without raises.If the 180 million is distributed everyone should get 78% of what is owed them while the 50 million amount shortage worked out and settled in the future.
If the 180 million is distributed now it would cover 78% of what all retirees are owed from 2009-2014.
ReplyDeleteThen the 50 million shortage could be distributed as a new plan is developed.
I hope our union protects all retirees and decides to distribute the 180 million giving all retirees 78% of what was promised in the 2014 contract and negotiate how to repay the 50 million needed to cover the shortage in the furure.The contract allotted the 180 million dollar fund to cover all retirees 2009-June 2014.
ReplyDeleteA fairer plan based on the contract promise
ReplyDelete"Upon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."
Since the 180 million is 50 million short if dispersed now every retiree could receive 78% of their lump sum now while plans to allocate the balance owed is negotiated-
Your comment is absurd since Mulgrew clearly stated that all teachers except those that left without retiring from 2009 to 2013 would receive full retro and they have to adhere to this legally
ReplyDeleteRetired teachers worked without raises.If the 180 million is distributed everyone should get 78% of what is owed them while the 50 million amount shortage could be worked out and settled in the future
ReplyDeleteThat's absurd we waited 5 years to get paid and many of us worked over 30 years. We were all made the same promise which is in written contract for full retro and re calculation of pension why would you try and turn 2 groups against each other. This is complete UFT issue for incompetence on numbers given to city and they need to resolve it or face current teachers with thought they are next
ReplyDeleteUpon ratification, the city shall establish a structured retiree claims settlement fund in the total amount of $180 million to settle all claims by retirees who have retired between Nov. 1, 2009, through June 30, 2014, concerning wage increasing arising out of the 2009-2011 round of bargaining. The fund will be distributed based upon an agreed upon formula."
ReplyDeleteLegally the contract should be followed previously retired teachers worked without raises.If the 180 million is distributed everyone should get 78% of what is owed them while the 50 million amount shortage worked out and settled in the future.
The city transferred to the DOE the180 million for 2009-2014 retirees September 30th.We need our union to see to it that retirees be given 75% of what we were promised now while the arbitrator arranges for the promised 60 million .There is no logical reason retirees should have to wait till February to receive a payment while there is a 180 million fund being held that was allocated .What is happening with the fund ?What are our legal rights?
ReplyDeleteHere we are a few days after Christmas 2014 and NO sign or word about the retro-pay that was guaranteed by Thanksgiving 2014! this is just more run-around with the doe and the lack of spine by the person who still see's money from my retirement check each cycle! I read the UFT Mulgrew letter about the two police officers and his comment about it being a 'tragedy' well yes I agree as does the entire world but I say the tragedy in the doe is the way we as retirees are treated and neglected. We served our kids we served our schools and we bent over backwards when it came to give-backs and going beyond the call of duty....Why are we treated as 2nd class citizens I ask????Thanks for your support and leadership Mulgrew!
ReplyDeleteLETS BE HONEST FOR A MOMENT,MOST TEACHERS ARE SELF HATEING MASOCHISTS ANYWAY, OR ELSE THEY WOULDNT ENTER OR STAY IN THE PROFESSION . SO THIS KIND OF MIS-TREATMENT IS WHAT THEY SECRETLY DESIRE ANYWAY , TO BE ABUSED OVER AND OVER,AND TO SHOW EVERYONE ELSE HOW THEY CAN ENDURE ALL THE SUFFERING HEAPED UPON THEM !!!
ReplyDeleteEnjoy your money retirees. Active members will wait six extra weeks to get a 3% raise in 2018 so it will cost them each around $500-700. Please thank active teachers.
ReplyDelete