financial merger

Proposal would shift teacher pension fund to new management

UFT President Michael Mulgrew joined Mayor Bloomberg and other union leaders to announce new pension reforms

Management of the teachers’ retirement fund is being merged with other public pensions systems under a proposal unveiled today by city officials and union leaders.

In an effort to chip away at the rising costs of the city’s $120 billion pension fund, Mayor Bloomberg and Comptroller John Liu announced a proposal to overhaul city unions’ scattered pension systems. Until now, each of the five different funds – for teachers, police, fire, school employees and other public sector — had been managed by a handful of trustees under the comptroller’s office.

Under the proposal, the pools of money from each union will be kept separate but the same professional investors will manage all of the funds. Those investors will not be part of the comptroller’s office and will not change when a new comptroller is elected, as they have in the past.

Bloomberg, Liu, and union leaders said today that the fund’s underperformance had resulted in part from its management structure.

But the proposal does not address other issues underlying the city’s growing pension costs, which have soared in the last 10 years. Last year, the city contributed $8.4 billion in payouts to retired city workers, up from just $1.2 billion a decade ago, when the pension funds do not generate enough earnings to match promised returns.

With over 200,000 members, the teachers’ $42 billion retirement fund, called the Teacher Retirement System (TRS), is also one of the city’s largest and costliest. As we reported last year, the fund took a hit from the 2008 financial crisis, which was compounded by a series of pension perks that were approved in the years before it:

The sweeteners reduced the retirement contributions for teachers and principals, putting more of the burden to pay for pensions onto the city. They also allowed per diem salary — money teachers make for taking on extra tasks like running after-school clubs and sports — to be counted in the overall final salary number. And, in 2008, a provision allowed teachers to retire early without being dinged in their pension earnings.

Together, the rising salaries and pension sweeteners have created a perfect storm: increasing costs just as the plan’s performance has plummeted in the down market. Although the TRS has not performed significantly worse than the market according to the new report, the annual rate of return it assumes — 8 percent — is high by most private standards. (To be fair, most public pension plans also use a number around 8 percent. Similar private sector plans assume a rate of around 4 percent.)

United Federation of Teachers President Michael Mulgrew downplayed concerns about specifics in the UFT’s pension plan today and lauded the reforms, saying the agreement shows that unions could collaborative with the city.

“Today what you see here is an announcement about the labor leaders of this city getting together with elected officials to say we can do things better on behalf of our city,” Mulgrew said at a press conference today where he was joined by leaders from each of the unions affected by the proposal.

But fiscal watchdogs said the proposal would not create lasting improvements in the city’s pension situation.

“This is a drop in the bucket and doesn’t begin to address the real problems the city has on its hands,” said Steven Malanga, a senior fellow at the conservative Manhattan Institute who studies urban economics. “The only way to solve this problem is to reduce the benefits of workers, which are extravagant.”

Mayor Bloomberg said he would travel to Albany to lobby the reforms with state legislators, who ultimately have to approve the proposed changes.

Weekend Reads

Need classroom decor inspiration? These educators have got you covered.

This school year, students will spend about 1,000 hours in school —making their classrooms a huge part of their learning experience.

We’re recognizing educators who’ve poured on the pizazz to make students feel welcome. From a 9th-grade “forensics lab” decked out in caution tape to a classroom stage complete with lights to get first graders pumped about public speaking, these crafty teachers have gone above and beyond to create great spaces.

Got a classroom of your own to show off? Know someone that should be on this list? Let us know!

Jaclyn Flores, First Grade Dual Language, Rochester, New York
“Having a classroom that is bright, cheerful, organized and inviting allows my students to feel pride in their classroom as well as feel welcome. My students look forward to standing on the stage to share or sitting on special chairs to dive into their learning. This space is a safe place for my students and we take pride in what it has become.”

Jasmine, Pre-K, Las Vegas, Nevada
“My classroom environment helps my students because providing calming colors and a home-like space makes them feel more comfortable in the classroom and ready to learn as first-time students!”

 

Oneika Osborne, 10th Grade Reading, Miami Southridge Senior High School, Miami, Florida
“My classroom environment invites all of my students to constantly be in a state of celebration and self-empowerment at all points of the learning process. With inspirational quotes, culturally relevant images, and an explosion of color, my classroom sets the tone for the day every single day as soon as we walk in. It is one of optimism, power, and of course glitter.”

Kristen Poindexter, Kindergarten, Spring Mill Elementary School, Indianapolis, Indiana
“I try very hard to make my classroom a place where memorable experiences happen. I use songs, finger plays, movement, and interactive activities to help cement concepts in their minds. It makes my teacher heart so happy when past students walk by my classroom and start their sentence with, “Remember when we…?”. We recently transformed our classroom into a Mad Science Lab where we investigated more about our 5 Senses.”

 

Brittany, 9th Grade Biology, Dallas, Texas
“I love my classroom environment because I teach Biology, it’s easy to relate every topic back to Forensics and real-life investigations! Mystery always gets the students going!”

 

Ms. Heaton, First Grade, Westampton, New Jersey
“As an educator, it is my goal to create a classroom environment that is positive and welcoming for students. I wanted to create a learning environment where students feel comfortable and in return stimulates student learning. A classroom is a second home for students so I wanted to ensure that the space was bright, friendly, and organized for the students to be able to use each and every day.”

D’Essence Grant, 8th Grade ELA, KIPP Houston, Houston, Texas
“Intentionally decorating my classroom was my first act of showing my students I care about them. I pride myself on building relationships with my students and them knowing I care about them inside and outside of the classroom. Taking the time to make the classroom meaningful and creative as well building a safe place for our community helps establish an effective classroom setting.”

 

Jayme Wiertzema, Elementary Art, Worthington, Minnesota
“I’m looking forward to having a CLASSROOM this year. The past two years I have taught from a cart and this year my amazing school district allowed me to have a classroom in our school that is busting at the seams! I’m so excited to use my classroom environment to inspire creativity in my students, get to know them and learn from their amazing imaginations in art class!”

 

Melissa Vecchio, 4th Grade, Queens, New York
“Since so much of a student’s time is spent inside their classroom, the environment should be neat, organized, easy to move around in but most of all positive. I love to use a theme to reinforce great behavior. I always give the students a choice in helping to design bulletin boards and desk arrangements. When they are involved they take pride in the classroom, and enjoy being there.”

moving forward

After Confederate flag dispute at Colorado football game, schools pledge to bring students together

PHOTO: Marc Piscotty
Manual High students.

Acknowledging “we may never have a conclusive picture of what happened,” two Colorado school districts sought to move past a controversy over whether a Confederate flag was displayed at a football game and open a conversation between the two school communities.

The principal of Manual High, Nick Dawkins, wrote in a community letter over the weekend that the visiting Weld Central High School team “displayed a Confederate flag during the first quarter of the (Friday night) game, offending many members of the Manual community.”

Officials from Denver Public Schools and Weld County School District Re-3J released a joint letter Tuesday saying that based “on what we have learned to date, however, the Weld Central team did not display the Confederate flag.” At the same time, it said, multiple Manual eyewitnesses “reported seeing spectators who attempted to bring a Confederate flag into the game and clothing with flag images.”

Going forward, students from the two schools — one rural and one urban — will participate in a student leadership exchange that has student leaders visit each other’s schools and communities to “share ideas and perspectives,” the letter says.

“At a time in our country when so many are divided, we want our students instead to come together, share ideas and learn together,” says the letter, which is signed by the principals of both schools and the superintendents of both school districts.

The alleged incident took place at a time when issues of race, social injustice, politics and sports are colliding in the United States, making for tough conversations, including in classrooms.

Weld Central’s mascot is a Rebel. Manual, whose mascot is the Thunderbolts, is located in one of Denver’s historically African-American neighborhoods.

Dawkins in his initial community letter also said “the tension created by the flag led to conflict on and off the playing field,” and that three Manual players were injured, including one who went to the hospital with a leg injury. He also said some Manual players reported that Weld Central players “taunted them with racial slurs.”

Weld Central officials vehemently denied that their team displayed the flag. In addition, they said in their own community letter they had “no evidence at this point that any of our student athletes displayed racially motivated inappropriate behavior.”

They said district officials “do not condone any form of racism,” including the Confederate flag.

Weld Central fans told the Greeley Tribune that they didn’t see any Confederate flag.

Read the full text below.