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NYC Teachers Exploit Pension ‘Loophole’

From the New York Post:

(Click to enlarge)

Great day for teachers’ pension loophole

By BRENDAN SCOTT

December 12, 2009

ALBANY — Teach for a day, reap benefits for life.

Not satisfied with concessions extracted from the pension-reform legislation signed yesterday by Gov. Paterson, the state’s powerful teachers union is urging would-be educators to exploit an outrageous loophole that lets them lock in sweet retirement benefits after just one day in the classroom.

New York State United Teachers posted a notice on its Web site Wednesday explaining how to game the system: Substitute-teach for one day before the new system starts on Jan. 1, apply for union membership, and you can join the more generous pension system any time in the next seven years.

"There’s still a very small window — a matter of days — for the future members to lock-in Tier IV," the post reads.

The new Tier V pension system, which Paterson estimates will save taxpayers $35 billion over the next 30 years, boosts the minimum retirement age for public employees and increases the amount of time they have to put before becoming vested in the system.

The teachers unions, who have 600,000 members and led Albany special interests by spending $6 million in lobbying last year, extracted several concessions to make the new tier more favorable to educators.

This is probably one of the few things they are good at teaching — gaming the system.

(Thanks to BillK for the heads up.)

This article was posted by Steve on Sunday, December 13th, 2009. Comments are currently closed.

5 Responses to “NYC Teachers Exploit Pension ‘Loophole’”

  1. BillK says:

    From the New York Post via Fox News:

    NYC Union Urges Educators to Exploit Loophole to Reap Retirement Benefits

    ALBANY — Teach for a day, reap benefits for life.

    Not satisfied with concessions extracted from the pension-reform legislation signed yesterday by Gov. Paterson, the state’s powerful teachers union is urging would-be educators to exploit an outrageous loophole that lets them lock in sweet retirement benefits after just one day in the classroom…

    http://www.foxnews.com/story/0,2933,580090,00.html

    But it’s all about the children… right?

  2. proreason says:

    Liberals are consistent…..if you understand what drives them.

    Self interest trumps everything. Including the country, the future, their families, and of course, children.

  3. Helena says:

    This is outrageous. But what else is new for the teacher’s unions? People sitting in holding rooms for months and years on full salary waiting for “arbitration hearings” because there aren’t enough “union arbitrators”, while the ratio of administration to students rapidly becomes 1:1, and now this. What saps we are who are not union officials.

  4. canary says:

    Question I’m confused. So, aside the national educators union, teachers in NY and other states have separate unions to also join? I don’t understand how this plan will work. Maybe the union is just tricking substitute teachers to do this so they can get membership money. Some unions you have to wait a year after joining before they let you quit their membership.


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