For Immediate Release: December 11, 2009

Contact: B. Jason Brooks, Director of Research and Communications
(518) 383-2598; bjbrooks@nyfera.org

(pdf)

Despite Gov. David Paterson signing a new Tier 5 pension plan into law intended to save the state billions of dollars, the New York State United Teachers (NYSUT) is promoting a scheme that uses a loophole to allow future teachers to “lock in Tier 4” benefits now, even if they do not become members of the state Teachers Retirement System (TRS) until 2016.

According to NYSUT’s website, “Tier 5 will apply to TRS members hired after Jan. 1.  That means there is still a very small window – a matter of days – for future members to still lock in Tier 4.  Here’s how: You can join Tier 4 by substitute teaching for one day… One day is enough to ‘lock in’ Tier 4 for seven years…”

“While the legislature and governor are trying to fix a real financial crisis in the state, New York’s teachers union is gaming the system to drive up costs for several years to come,” stated B. Jason Brooks, Director of Research at the Foundation for Education Reform & Accountability.  He added, “If this is the teachers union’s idea of ‘shared sacrifice,’ NYSUT ought to be ashamed of itself.”

NYSUT’s article promoting the pension fund loophole for future teachers is available on the union’s website at www.nysut.org/cps/rde/xchg/nysut/hs.xsl/careers_14097.htm.

#####

The Foundation for Education Reform & Accountability (FERA) is an independent, nonprofit, research organization dedicated to improving education in New York State by promoting accountability, stimulating innovation, and supporting school-choice efforts across the state.