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Welcome to the "20 YEAR PENSION" CLASS SETTLEMENT Web Site Note: Payment of lump-sum benefits commenced as scheduled on February 5 and are continuing on a rolling basis through February 22, 2010. Please let us know if you have not received your Settlement Payment by that date. Click here for the full settlement schedule.
Settlement Payments to in-service class members as of January 21, 2010 were credited to ITHP (Increased Take Home Pay) accounts as of that date.
Return to top If you are currently an active or inactive employee, a credit was deposited to your ITHP account on January 21, 2010. The credit will be shown on your online Monthly Account Statement for January 2010. Account statements are generally available approximately two months after the end of the reporting period.
Return to top TRS calculated the Payments based upon TRS's existing records, any changes in these records based on a review, and the provisions of the Stipulation of Settlement, as summarized in the Notice previously mailed to you. The Notice is available for viewing and printing by clicking on the link on this website. The amount of each Class Member's Payment depends on his or her Earliest Payability Date and the length of his or her Gap Period, as defined in Paragraph 2 of the Notice. Return to top
If you did not elect to make a Direct Rollover, it is required by law to withhold 20% of the taxable amount. This amount is sent to the IRS as federal income tax withholding. For example, if you are eligible to receive a taxable payment of $1,000, which you elected to receive by Direct Payment, only $800 will be paid to you because $200 must be withheld as income tax. Note: 20% withholding is not applied to amounts distributed by Direct Rollover. Return to top If you recently changed your bank or account information at TRS, the change may not have reached the Claims Administrator in time for payment. In this case, a check will be mailed directly to you. Return to top If you did not elect to make a Direct Rollover, TRS is required by law to withhold 20% of the taxable amount. This amount is sent to the IRS as federal income tax withholding.
Return to top You can roll over all or part of the Payment by paying it yourself to your IRA or to an eligible employer plan that accepts your rollover within 60 days after you receive the Payment. The amount rolled over to a traditional IRA or eligible employer plan will not be taxed until you take it out of the traditional IRA or the eligible employer plan. However, TRS must still withhold 20% of the Payment when it is paid to you. Return to top If you are a fractional beneficiary or an alternate payee of a Member, your Payment amount under the settlement is your proportional share of the Member's Payment based upon the percentage of the Member's benefit that you are receiving. As a result, for beneficiaries, the actual Payment may be less than the amount stated on the Individual Calculation Notice. The no-withholding rule discussed in the Special Tax Notice Regarding Additional Plan Payments only applied to non-spousal beneficiaries for plan years up to 2009. For plan years beginning after 12/31/09, the 20% mandatory withholding rule is in effect. Because these payments are being made in 2010, the payments are subject to the mandatory withholding requirement. This requirement was added by the enactment of section 158 of the Worker, Retiree and Employer Recover Act of 2008 (P.L. 110-458).
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If your address has changed, you may update your address by sending an address change request verifying the case name, your full name, old address, current address and signature. The name of this case is "Board TRS New York City Teachers' Retirement System".
Return to top For additional information regarding this lawsuit, you may visit the settlement website at www.20yearpensionsettlement.net or you may call the Claims Administrator toll free at 1-800-295-4716 between the hours of 11:00 am to 8:00 pm ET (8:00 am 5:00 pm PT) to speak with an operator. Or you may fax it to: 415-256-9756 Return to top Class actions are lawsuits in which the claims and rights of many people are decided in a single court proceeding. Individuals and organizations appointed to represent the class ("Class Representatives" or "Class Plaintiffs", in this case Randi Weingarten, the United Federation of Teachers, Thomas Pappas, Doreen Ellis, and Ronald M. Berg) are named in the lawsuit to assert the claims of the entire class. Return to top The Class Plaintiffs allege that the Defendant New York City Teachers' Retirement System ("TRS") has been systematically miscalculating teachers' benefits under the 20 Year Pension Plan since July 1, 1977. Specifically, Plaintiffs allege that since July 1, 1977, TRS improperly applied Gap Period Interest (interest on a Class Member's accumulated required contribution during the period between the date on which the member attained 20 years of service and the earliest date on which the member could begin receiving benefits) in excess of 4% towards funding Class Members' required share of the basic retirement benefit, instead of using such interest to provide additional benefits to Class Members. The Defendants contend that these calculations were made in accordance with law. The parties have decided to settle this dispute rather than continue to engage in the uncertainty of protracted and expensive litigation. Return to top
Generally, you are a member of the Class if you meet the below requirements (or you are a beneficiary of such member): Within the Class, there are three sub groups: Retired members of TRS who meet the above requirements and who themselves (or their beneficiaries, as applicable) received regular pension payments at anytime between March 16, 2005 and August 31, 2008. Inactive members (or beneficiaries) of such inactive members who died after completing 20 years of service who meet the above requirements, but who have not yet commenced receiving payments as of August 31, 2008. All those who meet the above requirements and who, as of August 31, 2008 are actively employed in a TRS or transferred contributor eligible position NOTE: This FAQ provides a general summary of the requirements for Class Membership. Please see 5 of the Class Notice for specific criteria. Return to top A Settlement Amount of $160 million has been agreed upon by the parties. The amount will be distributed to the Class with the intention of providing each class member with a proportionate share of the settlement amount. Each share (or in some cases credit) has been calculated individually by taking into account the interest rate in effect at the Class Member's Earliest Payable Date ("EPD", the first day on which he or she would be eligible to begin receiving benefits from the Member's 20 Year Pension Plan) and the length of his or her "Gap Period." Return to top For the purposes of this settlement, the "Gap Period" is the period of time between a member's 20 year date - when the member has completed the required 20 years of service and may choose to stop contributing and retire - and his or her Earliest Payability Date - generally the first day on which he or she is eligible to receive benefits (the later of the date on which he or she would have 25 years of qualifying service or attained age 55). To calculate class member benefits, the settlement establishes a "Gap Period" minimum of five years and a maximum of 15 years. Return to top
The parties have made their best efforts to ensure that the data used to calculate each Settlement benefit is as accurate as possible. Should a member determine that certain information which affects the amount of the calculation contained in his or her Individual Calculation Notice is incorrect, he or she may mail copies of supporting documentation to the address provided on the form. Any such request must be received by June 1, 2009 in order to be considered by TRS. TRS will, as set out in the Class Notice, correct challenged information if such challenge is based upon substantial credible evidence. By questioning the data through this procedure, the Member does not preclude participation in the Class. Return to top If you are a Settlement Class Member, you have the following options: Remain in the Class. i. If you are an Active or Inactive Employee but are not retired, you will receive your settlement payment as a one-time credit to your Increased-Take-Home-Pay account. No action is required by you to receive this credit. ii. If you are a Retired Class Member you will have the following options: 1. Direct Payment (full or partial): a) If you are age 62 or older or you are under the age of 62 and the payment due to you is under $1,000, you may simply do nothing and receive your full settlement payment directly. Alternatively, you may choose to complete the Direct Payment or Rollover Election Form attached to the Special Tax Notice and specify the percentage of the payment you elect to receive directly and the percentage you elect to have directly rolled over (see Rollover instructions below); 2. Rollover: In order to have your payment under the preceding sections directly rolled over into an IRA or eligible employer plan, you must complete and submit the Direct Payment or Rollover Election Form from your Special Tax Notice packet and return it to the address at the bottom of the form no later than August 28, 2009. If you did not receive a Direct Rollover Election Form, you may request one by calling 800-295-4716. Opt Out of the Settlement. If you wish to request exclusion from the Settlement, in which case you will not receive any money from the Settlement, you must complete and sign the Exclusion Form from your notice packet and return it to the address at the bottom of the form postmarked no later than August 28, 2009. If you did not receive an Exclusion Form, you may request one by calling 800-295-4716. Object to the Settlement. If you do not request to be excluded, you may present objections to or comments on the Settlement by submitting them in writing, postmarked no later than August 28, 2009 to the address below. You may both object to the Settlement and remain eligible to receive a payment from the Settlement. PLEASE REVIEW THE COMPLETE LONG FORM NOTICE FOR MORE DETAILED INSTRUCTIONS. Return to top If the Court approves the Settlement, Class Members will be paid as soon as possible after the Court order becomes final. We anticipate this will occur commencing December, 2009. If the Court does not approve the settlement or if there is an appeal of the Settlement, payment may be delayed.
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The Individual Calculation Notice states the total sum of monies due to the Member under this settlement. If you are one of several eligible beneficiaries or you are an alternate payee, your payment amount will be your proportional share of the settlement monies owed to the Member based upon the percentage of the Member's benefit you have received or are entitled to receive. Return to top If your address has changed, you may update your address by sending an address change request verifying the case name, your full name, old address, current address and signature. The name of this case is "Board TRS New York City Teachers' Retirement System". NYC TRS Administrator Or you may fax it to: 415-256-9756 Return to top
There will be a hearing to consider final approval of the proposed Settlement on September 30, 2009, beginning at 3 p.m., at the Supreme Court of New York, County of New York, 80 Centre Street, New York, New York 10007. Return to top IFor additional information regarding this lawsuit, you may visit the settlement website at www.20yearpensionsettlement.net or you may call the Claims Administrator toll free at 1-800-295-4716 between the hours of 11:00 am to 8:00 pm ET (8:00 am 5:00 pm PT) to speak with an operator. Return to top Keep in mind these important dates and deadlines for class members: 6/1/09 The Deadline for submitting supporting documentation to correct any information contained on your Individual Calculation Notice.
ALL QUESTIONS ABOUT THE NOTICE, CLASS ACTION, OR PROPOSED SETTLEMENT SHOULD BE DIRECTED TO GILARDI & CO LLC, THE CLAIMS ADMINISTRATOR.
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