Wednesday, January 25, 2017

Buying Back Service Credit Is Good For Your Pension.
























 


A number of educators have failed to take advantage of a perk that can greatly enhance one's pension.  That is to "buy back" pension credits for public service jobs that they once worked in New York State, County, City, Town, or Village.  Moreover, for Military Veterans who were honorably discharged. they can receive up to 3 years of pension credit. under certain conditions.  Finally, all substitute teaching and per diem jobs can also be bought back as service credit for a pension.  TRS has a service credit brochure that explains it all.

Unfortunately, working in a private, parochial, most Charter schools, and private industry are not eligible for buying back service credit.  Further, Federal and teaching in other States are also not eligible as well for service credit.  On the other hand since pension contributions are optional for paraprofessionals.  Many of the paras delayed or never joined the pension system.  These paras should see if they can buy back the time that can greatly enhanced their pension at their retirement date. Chapter Leaders should canvas the school paras and inform them of their potential pension windfall.

Remember, all service credit "buy backs" are subject to the 3% employee contribution and if the teacher is part of the special 25/55 or 25/57 programs than it would be 4.85%.  Still a great deal.

The bottom line, all educators should "buy back" any time they can and help them retire not only with a better pension but it gives one the option to retire earlier.

22 comments:

Anonymous said...

is day to day substitute service eligable for pension credit- or just if covering a teacher for over a 30 day period?

Anonymous said...

This is excellent advice- I did it and it added 10 months to my work history,(10 months closer to retirement!). It's also something to keep in mind when advising younger people on jobs.
I guess you can't switch state time to city, but you can switch city time to the state retirement system. I would carefully research all aspects of that though.

P.S. The link didn't work.

Anonymous said...

From what I understand, it will only count if you were an appointed teacher at some point. Then you can buy back those days.

Anonymous said...

I bought back day to day subbing about 15-20 years ago

Anonymous said...

Can u buy back day to day subbing from outside nyc. Subbed on Long Island for 2 yrs

Chaz said...

Anon 10:44

Yes you can. Just follow the TRS link to find out how.

Anonymous said...

Diblasio adding seats to NYC schools in new budget but I thought the new seats would be students going to charters and vouchers so why is NYC public schools planning for more seats when we have all these blood sucking charters taking away our students. Oh wait, charters and voucher private schools do not take special ed students or student with special needs....so, public schools will be warehouses for special needs kids?? Who the heck knows what is going on in education these days its quite scary.

Anonymous said...

Thanks Chaz you do a great job most of the time.

Anonymous said...

Do ATRs have to fulfill the 100 CTLE hours required by the state? I read that the state accepts CTLE hours from certain places like the UFT. Does that mean PD meetings in school do not count?

Anonymous said...

Aren't the CTLE hours not applicable to anyone who started working on or before 2003? Can you confirm this for us Chaz. Thank you.

Anonymous said...

Professional and Level III teaching assistant certificate holders are required to collect and track 100 PD hours in each 5 year cycle.

Permanent certificate holders are still not required to track PD hours and do not have to report CTLE hours. This includes permanently certified teachers. However, they have to register in 5 year cycles starting the month of their birth on or after July 1, 2016.

Additional info on UFT.org...search "CTLE information".

Anonymous said...

I heard Science AP M Morales is getting service credit for skrewing Bryant Principal Namita Dwarka?

I figure a single one hour love fest should be equal to at least a year.....

Anonymous said...

It seems from the latest UFT email that you have to pay for these PDs to be accepted by the state as CTLE hours. That would suck because I use to have school PD hours count toward the old 175 hours requirement.

Unknown said...

Ques, I am 49 yrs. old and have 23Yrs 10 months of service. I am a tier IV memeber in the 55/27 program. I recently received a letter from the TRS regarding my participation in the program and one time ability to terminate my participation. I want to retire at age 55. When I called the TRS I was told I would be required to pay an AMC deficit if I remain in program. If I terminate membership, I would be refunded. A representative informed me that it doesn't makes sense to be in the 55/27 program because at age 55 I would have about 30 years of service . I'm confused, any suggestions.

Chaz said...

I agree. You will have 30 years at 56 and it makes no sense to be in the 25/57 program.

Anonymous said...

to 913
i disagree with chazz
stay in the program as a hedge against anything that can happen.

Chaz said...

Anon 9:13

She already qualifies without an age reduction factor. There is no reason to give the TRS an extra 1.85% by staying in the program.

Anonymous said...

Hey Chaz my wife has 12 yrs in and will leave the system in about 5 yrs at age 46. Is it wise for her to remain in the 25/55 program. Thanks

Anonymous said...

I posted before, but want to add- I bought back Dept of Parks time that I worked in the 1980s. About 10-15 years ago, I realized that I was shorted about a month, so I made some calls to correct it. Turns out that the NYC records were destroyed. Anyway, my point is, either keep all paystubs and very good records, or apply for the buyback as soon as you can.

Anonymous said...

I can't believe Moises Morales pipedtt Namita Dwarka. Is there anyone Namita Dwarka hasn't pipedtt?! WHat s ska(u)nk

Anonymous said...

Does anyone know about concurrent service credit? Meaning, if I work part time CCNY or other city employment, can I earn credit toward my TRS pension?
btw, Chaz, thank you for your blog. I read every post.

Chaz said...

Anon 8:28

Mu understanding is that you cannot get service credit if you are a full time DOE employee since service credit is limited to one year for multiple jobs. However, you can increase your FAS and maybe add to the TDA as well.