STATEN ISLAND, N.Y. — Three advocacy groups representing active and retired New York City educators are raising concerns over recent actions by the New York City Teachers’ Retirement System affecting retired paraprofessionals.
The groups, Fix Para Pay, Fix Retiree Benefits and the NYC Organization of Public Service Retirees, say the Teachers’ Retirement System has notified over 100 retired paraprofessionals that their disability pensions were calculated incorrectly more than a decade ago.
According to the organizations, the Teachers’ Retirement System has already begun reducing benefits, with some retirees seeing their July pension payments reduced by more than half. The groups also allege that affected retirees are being asked to repay pension overpayments dating back three years.
The organizations argue that disabled retirees are being forced to bear the consequences of a mistake made by the retirement system.
“Retirees accepted those payments in good faith. They didn’t misrepresent their employment, exaggerate their injuries, or manipulate the system. They trusted the retirement system responsible for administering the pensions they earned through years of public service,” the groups said in a joint press release. “Some retired Paras were even given their pension amount in a consultation with a UFT Board Member and the UFT Retired Teacher Chapter Chair.”
The groups contend many of the affected retirees live on fixed incomes and that the pension reductions could create significant financial hardship.
In their statement, the organizations questioned why retirees should be responsible for correcting an error they say was made by the Teachers’ Retirement System and expressed concerns about the long-term reliability of pension calculations.
“If the retirement system can reverse its interpretation years later and dramatically reduce the pensions of disabled retirees who relied on its own calculations, what confidence should any public servant have that their retirement benefits are truly secure?” the groups said.
The controversy
At the center of the controversy is Section 605 of New York’s Retirement and Social Security Law, which governs accident disability retirement benefits.
According to the advocacy groups, the Teachers’ Retirement System is now interpreting the law to mean paraprofessionals who were eligible for workers’ compensation benefits should have received disability pensions equal to one-third of their final average salary rather than two-thirds.
The groups dispute that interpretation and argue the law should undergo further review before pension benefits are reduced. They point to language in the statute referring to members who are “eligible for benefits under the Workers’ Compensation Law” and contend its application is not as straightforward as TRS has suggested.
The organizations also cite a 2002 amendment to Section 605 that increased accident disability benefits for certain teachers to two-thirds of their final average salary. According to legislative records cited in the groups’ statement, the change was intended to address a disparity affecting teachers who were not covered by workers’ compensation benefits.
The advocacy groups are calling on state lawmakers to amend the law, halt efforts to recover alleged overpayments and prevent further pension reductions while the issue is reviewed. They are also urging the United Federation of Teachers to publicly support the affected retirees.
“We have successfully worked with TRS officials to lessen the impact of the agency’s error on our members, but there is more work to do,” said Alison Gendar, a UFT spokesperson. “We are committed to working through legislative and legal channels to make sure that our members are not further harmed.”
The New York City Department of Education expressed that while the TRS is a separate entity, they acknowledge the impact of the alterations on former staff members.
“We recognize that changes to retirement benefits can be deeply concerning for those impacted. TRS is a separate entity from New York City Public Schools and is responsible for administering retirement benefits, including disability pensions and any related determinations,” a spokesperson said. “We are grateful for the years of service these retired paraprofessionals dedicated to New York City’s students and understand the importance of retirees receiving clear, accurate information about the benefits they have earned.”