Saturday, September 30, 2017

Why Doesn't TRS Update The Final Average Salary Monthly?



























As many of you are aware the Teachers' Retirement System has had a major facelift to its online access system.  While some of the changes can be considered improvements, some of the other changes are not.  For example, the monthly unit increments for the TRS fixed rate return is missing under the new system that was readily available on the older system.  However, the most important omission in the new TRS system is the lack of an updated Final Average Salary (FAS) that was also available in the older system.

Since the new TRS system has been online the FAS listed is almost two years old.  Moreover, it does not include per session activities or 683 money for District 75 summer programs.  Finally, it is simply calculated on base salary with no adjustments.  I would think the so-called upgraded TRS system would have monthly updates of the member's FAS.  Instead they rely on the members to use their online calculator to estimate their pension which requires the member to make an educated guess of what his or her FAS is.

I have found the upgraded TRS online system to be disappointing and they should correct the issues I identified.  At this point the new TRS online system is a work in progress.


21 comments:

James Eterno said...

You can pretty much estimate your numbers and put them into the calculator at TRS and get a pretty good idea of what you are going to get now or tomorrow or a year from now. I do agree they could do more to update the system.

Chaz said...

James

One would think that TRS would have up to date FAS values for all its members, not a base number that was calculated in 2015.

Anonymous said...

I'm certain that they are crooks. They are stealing on a massive scale.

Anonymous said...

Chaz do you think that it is worth it for a tier 5 or tier 6 to attempt to complete 25-30 years in the DOE?

Anonymous said...

The TRS TDA does not compound the interest earned on a monthly basis. This is one method of dishonesty by TRS.

Anonymous said...

Why doesn't the TDA offer a ROTH (after-tax) option like the NYC Deferred Compensation Plan does?
That's why I, as a DOE teacher, have stopped contributing to TDA. Starting when you are 70 years old you must begin to give your money back to Uncle Sam, and your beneficiaries will be sharing a large portion him as well.

I invest in the Roth 457 and Roth 401k.

Roth, Roth, Roth!!!

Anonymous said...

to anon 833
Sorry to say, but anyone in tier 6 (hired after April 2012) will most likely NOT receive a FULL pension. Why you ask? Because who on earth can survive being a classroom teacher until their 63rd birthday? The penalty one incurs for each year a tier 6 teacher retires before age 63 is outrageous. Even if one retires at age 60, he will see his pension slashed 20% according to TRS. I look at the newbies in my building and wonder if they have any idea what they are in for. Sure, they legally can retire before age 63, but no way in hell will they live on a comfortable pension.

My advice, if you are tier 6 - quit now. If you are tier 5, do your 30 years and get out at 57 and live like a champ! I personally am tier 4, meaning I will do my 30 years and get out at 55, and live like a king!!!

Anonymous said...

I think the phrasing of this question is wrong. The question should be Do you think the DOENYC will let me teach or stay on for 25-30 years? The answer is No.

Anonymous said...

Three questions:

1. How does TRS compound the 7% fixed and variable A in the TDA over the year? Is it quarterly or annually?

2. What is considered the time period for the highest 3 of 5 years final average salary? Is it January to December or is it a school year of September to August or is it dependent on counting back from actual date of resignation or retirement?

3. I may be wrong, but didn't Bloomberg hand over management of TRS/TDA to his cronies?

Anonymous said...

Nor does trs update our years of service anymore.

Anonymous said...

8:09 am

TDA. Interest credit at the end of January Statement gives a larger increase due to annual compounding on the January 1st account balance.

So, the effective rate of interest is actually less than 7% because of TRS. trick interest scheme, You are nor receiving interest on your monthly account accruals.

DOEvet said...

8:09 good questions!

Anonymous said...

@841 They dont and it is very frustrating. Between the DOE and TRS to get an accurate quote of time in service is a hassle. I am retiring soon (very soon) and it was a pain in the ass to get an accurate #

retired teacher said...

to 8:09 - TRS is managed by trustees and the UFT controls the board having the majority of seats. Both previous mayors fought battles with the legislature to gain control of the TRS funds. The TRS members are voted on every time there is a UFT election.

Most of the workings of TRS are legislated - nobody is sitting in some dark basement making up stuff.

Anonymous said...

To 10:53PM
Where do you go to invest in Roth 401K
or Roth 457.
Thank You

Anonymous said...

To invest in the NYc Deferred Compensation Plan go to:
https://www1.nyc.gov/site/olr/deferred/dcphome.page

or just google "nyc deferred compensation"

You can contribute $18,000 to each or $24.000 each if 50 years old.

"I'm sockin' it away in my 401K!!!"

Roth, Roth, Roth!!!

Anonymous said...

The maximum you can contribute to a Roth is $6,500 per year if you are over 50.

Anonymous said...

Chaz you said, "the monthly unit increments for the TRS fixed rate return is missing under the new system that was readily available on the older system." Do you mean the benefits estimator under planning tools? ...which is only available to those who are eliglble to retire (age and years)? I'm 51 and not yet eligible so all the info under benefits estimator has always been blank for me. I have never had access to FAS either. But if I check my monthly account balance the monthly interest for fixed and monthly interest units for Diversified Fund are there. Of course it's October 8th and they still have info for August. Thanks for your posts---very informative.

Chaz said...

The monthly;y increment for the Fixed Income Fund is not listed and it was under the old system. Why they can't update the FAS is puzzling.

Anonymous said...

Will we receive The Annual Benefits Statement for 2017? We received one for 2016.It was a twelve page booklet which informed what our pension would be depending on age of retirement, with bar graphs. It also showed the different options for payouts. Thank you.

Chaz said...

Our ABS usually is sent out in November to the members.