This is from Yahoo News:
Once upon a time, Americans graduated from high school or college and entered the workforce, typically working for the same employer for a very long time. These jobs offered more than just a reliable paycheck -- they also promised retirement income for life, thanks to company-funded pensions.
In the heyday of pensions in 1980, roughly 38% of workers had one. And though pensions remain relatively common in the public sector (government jobs), pensions have largely disappeared in the private sector. Their return appears unlikely.
Only 18% of private-sector workers had access to a pension in 2017, and just 15% participated in one, according to the Bureau of Labor Statistics. Over time, the number of private-sector workers who have access to a pension is largely expected to trend toward zero.
This is from CBS from Tuesday, October 8:
General Electric announced it will freeze the pensions of 20,000 U.S. salaried workers, a measure designed to reduce its pension deficit and trim debt. The move will shave GE's pension deficit by as much as $8 billion and its net debt by as much as $6 billion.
Further down:
Like other corporations, GE has been phasing out its pension amid a push toward self-directed retirement plans such as 401(k)s. GE said it hasn't allowed new workers into its pension plan since 2012.
Please look at the reduction in TDA interest from 8.25 percent to 7 percent for NYC teachers and the passage of Tier VI for NYS government employees in 2012 in the context of this anti-worker world we live in.
If the business leaders finish off defined benefits pensions in the private sector, do you think the powers that be will stop? They will come after our pensions in the public sector. Anonymous comments blaming the UFT leadership for everything and dropping your union dues will not help.
Please recall that unions, including ours, led the highly successful campaign in 2017 against the Constitutional Convention which could have put our pensions in jeopardy. Protecting defined benefit pensions is important.
Tier VI is terrible compared to tiers I to V but it is better than nothing. To get actual improvements for the Tier VI teachers, we have to fight collectively as a much stronger union. If we do not, we will not make gains and eventually we could lose our defined benefits pension like they have in the private sector.
20 comments:
A large dose of reality here. I doubt we will see 50 comments telling us how they dropped out because of this. The anonymous idiots will lay low on this one.
But you use this an excuse to explain why the uft is so bad, the contracts are so bad, working conditions are so bad but we still must continue to pay them.
Oh, this is the "I know the uft sucks and they treat us like shit but it could be worse" defense...
Sewer rats are treated better than Tier VI. If I worked for 30 years and collected at 62 years old to find out my pension is 28,000-32,000 I would be livid and this is the best case for these new teachers. They are basically helping sustain the pension program for Tier IV.
All new teachers are royally screwed unless they can work 10-15 years.
Agree with above, "Better than nothing" doesnt work for me anymore, I have been suckered and mistreated for too long. Of course it could be worse, but that doesnt mean I should accept it and keep paying them to help screw me. When I was 22 maybe, not at 40 years old after begging for a drop of help for 18 years, and getting absolutely ignored.
Anon2323 is completely wrong with the numbers....stop scaring people. Tier 6 does cost more, and it's 55% for thirty years of service, however those who retire at 63 years from now will be doing it at a much hgher FAS then those who are in Tier 4 mid to late carreer. As James said we need to collectivly push for changes, just like we got in Tier 4 over the years. Please remember Tier 6 applies to the DMV worker in Buffalo as well as to the secretary working in Albany for the the office of taxation. It's not just teachers involved in this battle!
The union didn’t create the worst Tiers, it was Cuomo who pushed for it.
And, if a person worked 30 years and didn’t know what they would be getting as a pension, then they are a moron.
People with a clue should be spending, at least the last 10 years of their career, making sure they are going to make enough in retirement. Yes, they won’t be receiving a pension as big (percent wise) as earlier tiers, but they should have figured that out when they walked in the door. They, if they are NYC teachers, should be putting all their money into their TDA (because their starting pay is much better than what it was when I started so long ago) and they could also be putting money into the NYC 457 so they can collected more when they retire (or they can allow the TDA to sit and double in 10.7 years only collect from the 457).
These people are still going to be better off than most people, and please point your finger at Cuomo, you can’t really blame the UFT for this one.
Naw dont think 20 @10:52 and you think Tier VI will last 20-30 years hahahaha.
"Tier V Teacher"...................................."Tier VI Teacher".
34 year service............................................. 34 year service
Age Retires 57.............................................. Age Retires 57
Final 3-year FAS $100,000.................. Final 5 year FAS $100,000
Pension = $66,000..................................... Pension = $38,430
The difference is an astounding $27,570 annually. This is the difference between living well or struggling to make ends meet in retirement. Even if you look at the 25 year teacher who reaches full retirement age, the difference is significant.
"Tier V Teacher"...................................."Tier VI Teacher".
25 year service............................................. 25 year service
Retires at age 62..........................................Retires at age 63
Final 3-year FAS $100,000.................. Final 5 year FAS $95,000
Pension = $50,000.................................... Pension = $41,563
Nah. Had 28 years of my dues, never helped. No thanks.
But still cannot make a coherent counterargument to the yahoo piece.
The counter is we let the uft get away with murder because it could be worse. That is a pretty pathetic stance. We get paltry raises, get abused, get retro yeld for 11 years...And a million other problems, and we take it.
Counter as in the uft never helped me, I waited 20 years for a hardship transfer, paid tolls, gas, sat in traffic, they hung me out to dry. I dropped out.
Ignore the real con con victory and the fact that we still have defined benefits pensions to say the same old shit. Woes be you. Do something to make it better. Send an email to ICE, organize people at your chapter, start your own blog.
10:52 am is correct. The difference between pension pay between Tier 4 and Tier 6 is minuscule when teachers from both tiers complete 30 years of service. For rounding sake, if both teachers completed 30 years, a tier 4 will collect 60% while the tier 6 collects 55%. Not a big deal.
However, the HUGE PROBLEM AND BIG DEAL is that the Tier 6 teacher CANNOT leave the system until his 63rd birthday in order to collect (without a penalty). But the Tier 4 can leave at age 55. 8 years is a HELL OF A DIFFERENCE. Think about it, 8 ADDITIONAL YEARS of torture. THAT is a reason to feel sorry for the tier 6 folk.
Teacher Facebook page, people asking for others to explain rules of tda and pension. Is that the worth of uft? Their specialists cant be asked these questions?
Haha, yeah, when I went to those experts at Brooklyn uft they gave me INCORRECT information.
People go there all the time. Shows the teachers who have no knowledge of their own profession and lack of uft help.
I cant believe, all these years later, teachers still have no idea about retro, tda, pension, sick bank. These are teachers? Educated people? Can you read?
I retired at 58. I really think another five years might’ve killed me or at least made my life not worth living
Some day our union will fight for a full annual COLA on our NYSTRS retirement pensions. (Full annual COLA is a part of the NYPD/NYFD, federal, and social security pensions.) It is the best hedge against inflation.
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