RSS Feed |
|
|
|
|||||
|
Current Pension Topics: Some Limits on Transfer Of Funds From TRS
When you transfer your membership, you also transfer your tier status, service credit, annuity accumulations, and pension reserves. However, Tier III and IV members may not transfer their ASAF funds because other retirement systems do not have a fund equivalent to support these monies; as a result, Tier III and IV members may receive their ASAF funds as a withdrawal or directly roll over the balance. In addition, please note that TDA participants must elect either to withdraw, directly roll over, or directly transfer their TDA funds. How long does it take to process a transfer of membership? A membership transfer from TRS usually takes about 9-12 months after the member has filed a "TRS Membership Transfer Form" (code RW39), has submitted an official notification of resignation from the old employer, and has submitted a certification of membership from the new retirement system. Can I transfer my monies and service to another retirement system outside of New York State? No. Section 522 of the Education Law specifies that members may transfer to only New York City or New York State public retirement systems. Comment: The transfer of monies and service to an out-of-state retirement system (national portability) cannot be accomplished because the 50 defined-benefit systems to which the nation's teachers belong do not use the same benefit formula. National portability of retirement funds can only be accomplished with the establishment of a single Defined Contribution plan which all of the nation's school districts agree to use as their primary retirement plan. See: Teachers' Insurance and Annuity Association for how well this has worked among the higher-education crowd for the past 90 years. Can I hold membership in two City retirement systems at the same time? No. The Administrative Code of the City of New York prohibits simultaneous membership in two city retirement systems. What does it mean to become a transferred contributor? By electing transferred contributor status, you may retain your current TRS membership rights even though your new position would make you eligible to join another New York City retirement system. Paraprofessional members of TRS who resign their position to work as substitute teachers may, in many instances, maintain their TRS membership this way. If I separate from service before I am vested, may I purchase service that enables me to vest? If you are a Tier III or IV member who has not purchased prior service at the time you separate from service, you may become eligible for vesting by purchasing additional time. To be eligible for vesting, you must have completed at least five years of membership service. If I separate from service after vesting but later return to active service, how is my membership affected? If you left your QPP accumulations with TRS and returned to active service before the initial payability date of your retirement allowance, you would be reappointed as an in-service TRS member with all the benefits of your former tier; your additional service credit would count toward your future retirement allowance. However, if you withdrew your QPP accumulations, your TRS membership ended when you made your withdrawal; therefore, if you later returned to active service, you would begin a new TRS membership and become part of the tier in effect when you return to service. Please note that if you return to active service after the initial payability date of your retirement allowance, your retirement allowance would stop, and your active membership would be restored. |
for larger version       |
||||
)