Q: I'm hoping to retire this June, but with the sky falling down on investment and insurance companies, I'm worried. Will my pension be safe?

A: Despite the recent reports regarding the financial markets, rest assured that your New York State Teachers' Retirement System pension is guaranteed and safe.

First of all, New York is the only state with a constitutional guarantee. Article 5, Section 7, of the 1937 State Constitution guarantees no public retirement allowance will ever be reduced.

As for the value of the state pension fund, TRS invests the employer and member contributions throughout a member's working career and accumulates the assets necessary to provide a fully funded benefit in retirement. This method is called advance funding.

Because the TRS invests in a well-diversified portfolio, when one company or asset class underperforms, the stability of the other assets helps offset that loss. In fact, our initial estimated loss from the recent news represents less than 1 percent of the TRS holdings.

The TRS board, staff and outside consultants continually monitor our asset allocations and make adjustments as necessary.

Funds used to pay your benefits come into the retirement systems through employer contributions, 3 percent member contributions (for the first 10 years of service) and investment income.

Please feel as confident as we do that there are sufficient funds available for all pensions — for those already retired as well as those who will be retiring one day. (See "Is my pension safe?" Pages 14-15)

Q: I'm in the Army Reserve. My teaching was interrupted when I was called to Iraq. I read in your first column this school year that New York state would allow me to claim that military service without having to pay for it. Do I have that right?

A: If you are in Tier 1 or 2, there is no cost to you. If you're in Tier 3 or 4 and have more than 10 years of service, it won't cost you anything to claim your military service.

If you're in Tier 3 or 4, you would have to make the 3 percent contribution only if you have less than 10 years of credited service. 

Q: This fall I started receiving supplemental pay from my school district for sponsoring club activities after school. Sometimes we are also paid a stipend for attending an in-service workshop offered in my district.

These payments are added in with our regular paycheck, so do they count toward one's final average salary?

Also, does money earned by teaching an occasional workshop for the regional teacher center get factored into our FAS?

A: All three activities referenced are usable as part of your FAS if paid directly to the member via a school district payroll.