All I can say is that the pension having to be recalculated based on the bonuses was not what we were told how it would be calculated when the UFT was selling us the contract in 2014. UFT leadership told us our pensions would be based on a calculation that would include what we would have made had we received the two 4% raises in 2009 and 2010. That appears not to be how the pensions are being calculated.
If anyone can explain Mulgrew's email, we would really appreciate it.
I am writing with good news about your pension benefit: You will not have to wait until 2020 to get your full pension and you will not have to deal with multiple recalculations. The UFT and the city reached an agreement that allows for a one-time recalculation of your pension. This agreement affects thousands of UFT members who like you retired on or after July 1, 2014.
In October 2015, you received the first of five lump-sum payments with the remaining payments to be distributed through 2020. Instead of the Teachers’ Retirement System recalculating your pension each time you receive one of these payments, TRS will recalculate your pension only once and include the full increase that you are entitled to. Those revisions should be underway before the end of 2016.
This one-time recalculation has no effect on the size of the lump-sum payments you will be receiving from the Department of Education or the schedule of those payments.
TRS will be providing you with a letter explaining this one-time recalculation. This document will be your acknowledgement that you are aware of the one-time recalculation and understand that there will be no future recalculations related to the current UFT contract. You must sign and return this letter to TRS.
Your first revised pension check will include both your new monthly retirement benefit as well as the retroactive monies associated with not receiving your full pension benefit from your retirement date. On your check stub or EFT statement, the retroactive amount will appear as a separate line item. Your subsequent monthly check will be the first one reflecting just your new retirement benefit.
TRS will send you a new benefits letter about a week before your first revised pension payment.
If you have questions about your pension recalculation, please wait until after you have received this benefits letter from TRS. Once you have received your benefits letter, feel free to call TRS at 1-888-869-2877 or the UFT Retiree Pension Department at 1-212-598-9536.
I am happy that the UFT has been able to negotiate this advantageous process. It will help you enjoy your full, well-deserved pension sooner rather than later.