Questions about benefits of T/O

[eidde]

I,m taking the test this sat. This is the 2nd time. I took the test in 2000 and was #212 on the list. I got called in a few months (to the city) for a followup where a Transit Employee told us (about 30 in the room) that we basically had the job (if you passed a piss test) and would report to school in about 2 weeks. Unfortunately, I was still in the Army and you can't give Uncle Sam 2 weeks notice. Anyway they told me to go downstairs and have my name remove/deferred whatever ( wasn't going to go back anyway). Enough history, before I go take this test again I was wondering about benefits (as I read this board) I am retired military and do not need the TA medical benefits. Are these medical benefits mandatory or would I get to keep the 1.5% you have mentioned? Also, please clear up the pension issue. Is it a 401K or is it a pension and if I get out after 10yrs can I recoup.

 

Thanks in advance

[Jah]

I,m taking the test this sat. This is the 2nd time. I took the test in 2000 and was #212 on the list. I got called in a few months (to the city) for a followup where a Transit Employee told us (about 30 in the room) that we basically had the job (if you passed a piss test) and would report to school in about 2 weeks. Unfortunately, I was still in the Army and you can't give Uncle Sam 2 weeks notice. Anyway they told me to go downstairs and have my name remove/deferred whatever ( wasn't going to go back anyway). Enough history, before I go take this test again I was wondering about benefits (as I read this board) I am retired military and do not need the TA medical benefits. Are these medical benefits mandatory or would I get to keep the 1.5% you have mentioned? Also, please clear up the pension issue. Is it a 401K or is it a pension and if I get out after 10yrs can I recoup.

 

Thanks in advance

 

The medical is mandatory unless you are covered under a spouse. There is a pension after 25 years of service and the age of at least 55, but you can also opt into a 401k or 457 plan but the TA doesn't contribute. You are vested in the pension after 5 years so yes after 10 you can get a partial pension when you get to the correct age.

 

The 1.5% which is actuall now 1.7% is technically not for our benefits but for the benefits of the retirees who had much better pension plans than us. The TA gets more than double the amount of money from this "Toussaint tax" than they actually have to pay out to retirees. It is for gap insurance which fills the gap between retiring at 55 and getting medicaid at I think 62. BUT we already have insurance during this time if you stay in NY.

[sfnyc]

The medical is mandatory unless you are covered under a spouse. There is a pension after 25 years of service and the age of at least 55, but you can also opt into a 401k or 457 plan but the TA doesn't contribute. You are vested in the pension after 5 years so yes after 10 you can get a partial pension when you get to the correct age.

 

The 1.5% which is actuall now 1.7% is technically not for our benefits but for the benefits of the retirees who had much better pension plans than us. The TA gets more than double the amount of money from this "Toussaint tax" than they actually have to pay out to retirees. It is for gap insurance which fills the gap between retiring at 55 and getting medicaid at I think 62. BUT we already have insurance during this time if you stay in NY.

 

Just wanted to clarify the last two sentences. When you retire with a City pension, your City health benefits continue until you turn 65. This is the "gap insurance" that Jah refers to. At age 65, you become eligible for MEDICARE and that becomes your primary health insurance. You can also purchase additional supplemental coverage. You must sign up for MEDICARE prior to your 65th birthday. You are eligible to file for Social Security benefits starting at age 62, but it will be permanently reduced depending on how many months you file before your official retirement age of 65 or 66 or 67. It depends on the year in which you were born and you can check out the social security web site for more details. Medicaid is a State program and is provided to low income and indigent New Yorkers. It is based on a means test--resources, income and falling below certain income thresholds.

[Jah]

Just wanted to clarify the last two sentences. When you retire with a City pension, your City health benefits continue until you turn 65. This is the "gap insurance" that Jah refers to. At age 65, you become eligible for MEDICARE and that becomes your primary health insurance.

 

This is not the case for us state employees that are under the city pension system. When you retire you can keep HIP and use it in NYS. If you have GHI your coverage ends when you retire, but you can just switch to HIP the year before you retire. These are the only insurance options we get, HIP or GHI.

 

The gap insurance I talked about is the medical that the retiree's can now get out of state because of us paying 1.7% of our GROSS pay. This coverage ends when you turn 65 and get medicare.

[sfnyc]

This is not the case for us state employees that are under the city pension system. When you retire you can keep HIP and use it in NYS. If you have GHI your coverage ends when you retire, but you can just switch to HIP the year before you retire. These are the only insurance options we get, HIP or GHI.

 

The gap insurance I talked about is the medical that the retiree's can now get out of state because of us paying 1.7% of our GROSS pay. This coverage ends when you turn 65 and get medicare.

 

That sucks. The differences are amazing. Does the City agreement with the unions on HIP and GHI cover you guys, or are you governed by a different agreement?

[Jah]

That sucks. The differences are amazing. Does the City agreement with the unions on HIP and GHI cover you guys, or are you governed by a different agreement?

 

We have nothing to do with the city except being part of NYCERS which is a acam to get our contributions and use them for uniformed services who don'[t put enough in. They only contribute for the first 10 years while we contribute for out entire career.

[Harry]

Just to let members of this forum know, I do not work for NYC Transit or the MTA in any capacity. I work in the information technology field for a private company. I have some questions that I am curious about.

 

Do NYC Transit employees have a cash balance formula or a traditional pension?

 

If so, has NYC Transit management ever try to convert all bargaining unit employees to switch over to a cash balance formula.

 

Also, aren't NYC Transit employees pension and 401k two seperate retirement accounts?

[Jah]

Do NYC Transit employees have a cash balance formula or a traditional pension?

 

If so, has NYC Transit management ever try to convert all bargaining unit employees to switch over to a cash balance formula.

 

Also, aren't NYC Transit employees pension and 401k two seperate retirement accounts?

 

Harry I will answer as best as I can but I am no pension expert yet because I still have at least 23 years to learn everything I need to know.

 

We have a defined benefit pension which lets you collect 50% of your average yearly pay for your highest earning 3 or 4 years. Your highest paid years could technically be your first 3 but usually there at the end of your career because your hourly pay is alot higher. You can only increase your yearly net by 10% a year for each of the 3 years that will be calculated towards your pension. This is because of the tier 1 guys who's pensions were calculated only on there last year and these guys were living on the job for there last year and leaving with pensions of more than I make a year today 25 years later.

 

Yes the 401k and 457 retirement plans are completely separate from the pension. These plans are totally voluntary and the MTA doesn't contibute anything to them.

[KNIGHTRIDER3:16]

I,m taking the test this sat. This is the 2nd time. I took the test in 2000 and was #212 on the list. I got called in a few months (to the city) for a followup where a Transit Employee told us (about 30 in the room) that we basically had the job (if you passed a piss test) and would report to school in about 2 weeks. Unfortunately, I was still in the Army and you can't give Uncle Sam 2 weeks notice. Anyway they told me to go downstairs and have my name remove/deferred whatever ( wasn't going to go back anyway). Enough history, before I go take this test again I was wondering about benefits (as I read this board) I am retired military and do not need the TA medical benefits. Are these medical benefits mandatory or would I get to keep the 1.5% you have mentioned? Also, please clear up the pension issue. Is it a 401K or is it a pension and if I get out after 10yrs can I recoup.

 

Thanks in advance

Sorry to hear bout that you would figure (MTA)would give you a break I mean you served the country the city should help you out why don't talk to A city official like john liu anyway taken it (2)in jamaica so see ya(K)<R>

[JustLok]

As mentioned, you can opt out of the TA medical benefits if you can be covered by your spouse (and prove it). If you do so, the TA reimburses you I believe $1200, I forget the exact amount, but they do give you money for doing so.

 

As for what your pension will be, it's not exactly computed on your highest earning years, it's the last 3yrs of service that's computed. You also gain additional % for years over 25yrs served. I believe it's an additional 2% for 26-30yrs, then 1% for every year over 30%. Also, as mentioned, they changed the computation so you can't tag on an outrageous amount of OT in your final year and retire on that formula. The years will be averaged out to get a mean annual wage to compute for your pension.

 

And as you probably know, you can also buyback your military time to comp your pension time.

 

BTW, don't forget your Veteran's Credit on that test.

[Harry]

These plans are totally voluntary and the MTA doesn't contibute anything to them.

 

Very surprising to read. I always thought they contributed at least a 25% match. Well anyway they should.

[Jah]

Very surprising to read. I always thought they contributed at least a 25% match. Well anyway they should.

 

I wish they contributed anything because I put 6% into a 457 account.