You asked us...
 Q: I’ve forgotten my password and user ID for your secure website. What should I do?
A: You can easily retrieve a forgotten password or user ID online. Click Member Sign-in at the top right-hand corner of this page, and then follow the instructions on the sign-in page under “Trouble Signing in.”
Q: How was the pension fund affected by the credit crunch?
A: Although we did not invest directly in the types of investments that gave rise to what is known as the subprime crisis, we did have indirect exposure through other investments. As a result, the value of some of our fixed income securities was impacted materially by the global credit crisis last year.
We expect further impact on the pension fund as markets continue to adjust to this phenomenon. For more information, read the investment section of our annual report.
Q: Why are your investment returns and benchmarks lower than many other pension plans?
A: Every pension plan chooses an asset mix and investment strategies to meet its own pension obligations at an appropriate level of risk. It then benchmarks or measures its performance against the markets in which it invests.
Teachers’ asset mix includes 45% equities, vs. 60% or more for many other large pension plans. The lower allocation to equities reflects the plan’s risk tolerance. Equities are more volatile than returns from other instruments we hold. A lower allocation to equities insulates the fund (and those contributing to it) from market swings and the shortfalls that could result.
Due to the declining teacher-to-pensioner ratio, a smaller proportion of the plan’s members bear responsibility for keeping the plan fully funded.
As the chart below shows, the low ratio of contributing teachers to retirees makes it more difficult to overcome any future funding shortfalls with contribution increases alone.
In 2007, the Teachers’ pension plan earned 4.5%, nearly double its benchmark of 2.3%. In dollars, that translates into $2.3 billion above our total fund benchmark, or the dollar equivalent of 64,000 pensions paid last year.
| Declining ratio of working-to-retired members |
|
| |
|
|
1970 |
|
1990 |
|
2008 |
|
| |
Contributing members per retiree |
|
10:1 |
|
4:1 |
|
1.6:1 |
|
| |
Future contributions as a percentage of plan assets1 |
|
93% |
|
42% |
|
26% |
|
| |
Increase in contribution rate required if assets
decline by 10% |
|
0.56% |
|
1.9% |
|
4.4% |
|
1Assuming the plan is fully funded |
Q: Is my disabled adult daughter entitled to survivor benefits?
A: If you don’t have an eligible spouse, your daughter may qualify for a survivor pension when you die. We can do a preliminary assessment now of your daughter’s medical eligibility for benefits. If she meets our requirements and her disability is the same or worse at the time of your death, she should qualify for benefits. Your daughter or her legal representative must apply for the benefit — and show proof of medical eligibility — upon your death. No two cases are alike, so call us if you have questions.
Q: My husband is retiring in June. Will working after retirement rules apply if he teaches at summer school in August?
A: Your husband can begin his pension and work in July or August as long as we receive his pension application before his resignation date in June.
| A resignation is considered valid only if: |
| • |
his employer confirms acceptance of his resignation without condition; |
| • |
no arrangement has been made to return to work in education; and |
| • |
he has either received or arrangements have been made to receive any applicable gratuity. |
| Keep in mind that if he works in July or August, he will use the first of three school years in which he is allowed to work for up to 95 days without affecting his pension. This will apply even if he works for only part of a day. |
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