Governor Signs 55/25 Pension Bill for UFT; Must Contribute 1.85% More of Salary To Qualify

By RICHARD STEIER

Governor Spitzer Feb. 27 signed into law a bill that improves city Teachers' pension rights by allowing them to collect full benefits at age 55 if they have 25 years of service.

GOVERNOR SPITZER: Makes Teachers' day.

Those hired subsequent to the bill's signing will need to reach 57 with 25 years' service to qualify for a full pension.

City's Consent Critical

The change - previously Teachers needed 30 years on the job to be able to retire at full pension at age 55, or to be 62 - was agreed to last October by the Bloomberg administration following negotiations with the United Federation of Teachers. The Governor made clear in his memorandum of approval that the employer's consent was a key reason he looked favorably upon the bill.

"Given the careful negotiations that led to this bill, and the lack of any adverse impact on any third parties, deference to the mutual understandings of the City of New York and UFT is fully warranted," he wrote.

UFT President Randi Weingarten said the bill's enactment represented "a great day for educators who want to make teaching New York City's schoolchildren not just a calling but a career."

RANDI WEINGARTEN: Struggles bear fruit.

She noted that the union had been pushing for the bill since 1994, but in the past talks had stalled over the UFT's determination not to require additional payments by veteran staff.

Because the city insisted that it would not finance any portion of the added costs associated with allowing members to retire earlier, UFT members will have to pay an extra 1.85 percent of their salaries to the pension system. The payment is mandatory for future Teachers, but will be optional for those already on the job.

Because the law requires no retroactive payments, it is a bargain for incumbents: someone with 20 years' service at present would have to pay the extra 1.85 percent for just five years to be eligible to retire at full pension.

While the city will initially be forced to pay about $315 million extra, partly because it is covering the cost of health benefits for both those who can retire earlier and their replacements, as lower-paid new Teachers join the workforce in increasing numbers, the scales will shift. Over the next 25 years the city will actually wind up saving about $300 million, two fiscal experts have told this newspaper.

In addition to Teachers, other UFT members including school administrators, School Nurses and School Therapists are eligible to take advantage of the advanced retirement plan.