Q: I've been reading in the newspapers that the retirement system has lost a lot of money because of the economic problems in the country. How will that affect my retirement allowance when I retire in five years? And who is making the decisions about our retirement system's investments?

A: Your retirement allowance will not be negatively affected when you retire. Our pensions are calculated on the years of service and the amount of our final average salary. The system has sufficient funds to guarantee the earned pensions for all of us.

The New York State Teachers' Retirement System operates under the "prudent person" rule, which is that all 10 board members of the system rely upon the expertise of experienced practitioners in the area of finance. The entire team of analysts is constantly monitored by a manager who is extremely proficient in the areas of risk and return. New strategies for producing ancillary income for the system are being employed. In addition, the NYSTRS periodically convenes an Investment Advisory Committee of investment experts from around the U.S., who peruse our portfolio and offer suggestions and insight.

No one should be under the impression that one person sits at a desk and is the sole selector of investments for the system. Please remember that the majority of TRS investments follow the major indices in the U.S. When an acknowledged index is performing poorly, the investments that mirror the index do exactly that — perform the same.

Q: The union seems to always urge retirement incentives involving a 55/25 option, or allowing members to retire with full benefits at age 55 with 25 years of service. What about those like myself, who at the end of this school year will be 53/29? We put more years into the system than those with 25 years but we seem to always be forgotten.

A: Age 55 is the standard because that is the earliest age at which ANY member, regardless of tier, is eligible for retirement. The 55/25 is an enormous benefit improvement. Currently, at the minimum age of 55, Tier 2 and 3/4 members must have 30 years of credited service.

Additionally, allowing any age under 55 for retirement purposes would endanger the fiscal balance of the NYSTRS. Retirement allowances constitute the major liability for the system and are structured — as are life insurance tables — on the life expectancy of the annuitant (i.e., a 55-year-old has a shorter life expectancy than a 53-year-old). The NYSTRS operates on a 50-year cycle and must consider its liabilities in that framework.

Q: Are public school teachers eligible to utilize unused, unpaid sick leave to increase service credit at retirement?

A: TRS does not offer service credit for unused sick days. NYSUT does have a bill in its legislative program that proposes to afford such credit, which is available to some state employees.