Q: I am trying to figure out if a Teachers' Retirement System loan is a good option for me to pay off credit card debt. How much can I borrow?

A: We don't give financial advice to members, but we can offer some suggestions.

For exact information on how much you can borrow from your 3 percent TRS contributions, contact the TRS at 800-348-7298, ext. 6080. For advice on whether to use those monies for your credit card debt, you might wish to speak to a certified accountant or financial planner.

Keep in mind the interest rate for a TRS loan may be higher than that available through a private lender.

The law mandates TRS charge 7 percent interest for loans to Tier 3 and 4 members, and 5 percent for loans to Tier 1 and 2 members.

And, due to recent IRS regulations, you could face severe tax consequences if you have an outstanding loan and are considering borrowing additional funds.

The bottom line from NYSTRS is: When consumer interest rates were high and before the IRS regulation went into effect, borrowing from your retirement contributions may have been a good idea.

Today, however, with lower consumer rates and the possible severe tax consequences, a TRS loan is likely to be more costly for most members.

Q: I am retiring as a teacher this June. If I become a teaching assistant working with computers, etc., for a salary of about $20,000, does that require a waiver?

A: As long as you are under the $30,000 "cap" (for this calendar year) for working in retirement, you are OK.

Q: I will be retiring at the end of this school year after 31 years. My 55th birthday is Sept. 24, which is my eligibility date. Should I list July 1, or my birthdate, as my effective retirement date? 

A: You are eligible for retirement on your 55th birthday, so the September date will be your effective date of retirement. We suggest that you mail your retirement application (certified, return receipt) with that date, on or about the first of August.

Q: What are the requirements to join the Teachers Retirement System? My son will be graduating with a teaching degree in December. I know that if he subs even one day he could become a member of Tier 4. Does he have to be certified to join?

A: Substitute teaching does not require certification nor a degree. All he has to do is join the TRS (800-348-7298, ext. 6250) and THEN substitute for one day to "lock in" Tier 4 membership. If Tier 5 becomes a reality effective July 1, he should do all that PRIOR to the last day of school in June.

Q: I am a Tier 4 member, about four years away from retirement. Due to some health issues, I may need to take a leave of absence for one year. Does that year of zero salary get calculated into my FAS of three years, if I indeed take the leave within my last three years of working?

A: Sorry to learn of your health issues. That year of leave without pay does not count in your FAS. It's as if it never existed. That way it will not negatively impact your pension.