Whenever the stock market heads down for a period, you can just about guarantee there will be press stories like this one in The City talking about how New York City will have to replenish pension funds because of stock market losses. The ultimate goal from the right (EJ MacMahon is quoted) is to blame city worker pensions for financial costs the city might incur. It is funny how you never see anything in the press in one of the many years when stocks do well and the city makes a killing from excess returns on our retirement investments.
Comptroller Brad Lander does not seem too worried about the current downturn. This is from his statement on investment returns for the city's retirement systems:
During a volatile period for global financial markets, the New York City Retirement System faced losses across public markets, resulting in a preliminary net investment return of -8.65% across all five pension funds for the Fiscal Year ending June 30, 2022. Overall, the City’s five pension funds performed better than their benchmarks, and each remains well-funded to guarantee retirement security for its members.
The past year has seen the worst stock market decline in decades. In the first half of 2022, the S&P 500 fell 13.8% — its worst performance since the early 1960s. All major public asset classes, except commodities, incurred significant losses. Public equity returns over that period were the worst in fifty years, and U.S. Treasury returns were the worst since 1788. For New York City’s funds, historic losses in public equities and fixed incomes were offset partially by better performance of private market assets.
Despite market declines on a scale that haven’t been seen in decades, the New York City Retirement Systems outperformed our benchmarks and are well-positioned to weather market volatility over the long term.
If you are in a panic over your TDA returns, my totally non-financial advisor thoughts are that you should try looking at the longer picture and not just the latest quarter.
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16 comments:
The TDA is a wonderful thing—although it really was a crime when Weingarten somehow managed to negotiate the fixed rate for the UFT members— downward from 8.25 to 7%.
Why do you think Weingarten agreed to let the TDA rate
be lowered to 7%?
Crazy that we could lose 1.25% off of our fixed TDA without a vote by membership. I remember it being sold to us as the cost of not coming back for PD days before Labor Day. Doubt the city would ever give it back for 2 PD days now. They are laughing at the money being saved. Horrible negotiations like that doesn't instill confidence that we will get a good contract.
The pension and TDA are literally the only 2 things veteran teachers like me care about and is the reason we are sticking it out in the shit hole that is DOE.
Since you posted that...
When do we get 8.25 like every one else?
Contract expire in 6 weeks...
Nice work UFT. Nice work voters.
https://www.nydailynews.com/new-york/education/ny-nyc-school-budget-cuts-lawsuit-court-hearing-20220803-o4ohjchgrjbwrb4dtacs2lkafy-story.html
So the SI Ferry workers have more guts and can take a stand...
It was not a crime. It's a miracle we still have it. The legislature could kill it on any Wednesday if it wanted. 7.5% when a CD withh 100,000$ would pay .1% is an outrage to taxpayers.
Can't look at the long term picture if you're getting ready to retire.
I distinctly remember Tom Brown coming to our school to explain how losing the 1.25% was, in reality, a good thing because we were getting those last 2 days before Labor Day back and the CSA was also going to lose the 8.25 shortly but would get nothing in return.
Well, on a million dollar TDA ( not that uncommon among recent retirees) that comes to a loss of 12,500 a YEAR!
Most expensive two days in labor history
And, of course, the supervisors are still getting the 8.25
I heard the CSA still has 8.25%. Their leadership is just not as dumb and useless as the UFT... yet.
1:35 The NYS constitution guarantees our 7% not a “miracle.” I just got a brokered CD for 3.3%.
I’m old enough to remember when we earned at least that in a simple savings account. This was before Bill Clinton won his war against the American middle class with the help of 2 Bushes and an Obama. Taxpayers should be outraged over THAT.
Shhhh. Don't tell the public we get 7% in the TDA. Go bitch about the loss of 1.25% and you will be laughed out of town. CSA has few members compared to UFT. Randi saved the city enormous money. Still, 7% on money not taxed till you take it out is enormous compared to anything else you can get. The growth rate is enormous compounded.
@1:25 Is it Randi's job to save New York City enormous money by cutting our retirement benefits?
Randi is not loyal to the UFT members.
Randi is only loyal to herself as manifest by her status in the Democratic party. She seems to get off on speaking at Democrat party conventions. Randi has lost her moral compass.
1:35 PM: 7% TDA absolutely not guaranteed by state constitution. You are no doubt thinking of our pension. This is not that
Since we're talking about TDAs. I don't have much experience with the TDA, any suggestions on which is the best investment out of the choices they give us (low-moderate risk).
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