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Benefit policy for University retirees could take a hit
CAROLYN CRIST
Issue date: 10/2/08 Section: News
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A proposal suggested by the Governor's office could change the policy wording that the Teacher Retirement System "may give" instead of "shall give" a 1.5 percent increase every six months.
Though the change won't be voted on until Nov. 19, professors and staff at the University have begun to express concern.
"It's a shock to everybody that someone would even think of changing it," said Ralph Steuer, professor of banking and finance and the Board of Regents representative to the Teacher Retirement System Board of Trustees. Steuer, appointed to the position in August, was unable to attend the Sept. 24 meeting to vote on the proposal.
The Teacher Retirement System of Georgia is one of two retirement programs offered at the University, and a large number of University staff are members. The change could affect more than 300,00 statewide - about 79,000 retirees and 254,000 members who have not yet retired.
Under the Cost of Living Annual Increase, benefits for retirees grow by 1.5 percent in January and again in July.
"The program has been on auto pilot since 1969," Steuer said. "They want to take it off and put it on an ad hoc basis so each year they look at it and decide if it should be at 1.5 percent, maybe 1 percent or even 0.5 percent."
Tommy Hills, chief financial officer for the state, presented the change and said the rationale is that all the other state retirement boards vote on the increase annually.
But, Steuer said, "no one questions the [1.5 percent] because it's such a precedent."
The policy is "pre-funded" as a defined benefit plan, which means faculty and staff pay each year and receive a defined benefit, he said.
"So it's essentially a property right," he said.
"If a person is retiring today and has been paying for 30 years, it's a surprise when someone wants to take away the thing they've been paying for."
Mary Evans, an administrative specialist in Terry College, said she heard about the change through a staff member who received the item on a staff list serv.
"This affects staff, and they should not just let it change without showing that everyone cares," she said. "I talked to human resources to issue something that alerts faculty, but they said they couldn't take an opinion on it."
Viewing Comments 1 - 7 of 7
Toula C. Bradley
posted 10/02/08 @ 10:53 AM EST
Please refrain from tampering with retirement benefits. Increases are something promised and expected for former employees. Don't make an otherwise difficult situation more so by adding uncertainty about future income. (Continued…)
anon
posted 10/02/08 @ 11:21 AM EST
To me it's an honesty thing. They're changing the benefits after someone's vested. That's bogus. And UGA's credibility will suffer. I know I'd think twice about taking a job at UGA now, seeing as they don't value their word. (Continued…)
Carrie
posted 10/02/08 @ 3:45 PM EST
This is a big deal to UGA staff and faculty who contribute to TRS for their retirement. Even if I am not close to retirement at this time, it absolutely could affect me in the future. (Continued…)
Joe Wisenbaker
posted 10/02/08 @ 6:33 PM EST
Any faith that the TRS Board will not act against the best interests of current and future TRS retirees is surely misplaced! Anyone with an interest in this should contact the TRS with their concerns right away - I did (but haven't gotten a response yet). (Continued…)
ugaprof
posted 10/02/08 @ 11:51 PM EST
If they want to adjust the increases to match the actual inflation rate, they should adjust them in both directions -- up as well as down -- not cap them at 3% annually regardless of the inflation rate. (Continued…)
Helen
posted 10/03/08 @ 8:09 AM EST
This would send out a big "Thank You" to all the Staff and Employees who are vested into their retirement plans and who trusted the University of Georgia to live up to their word. (Continued…)
Homeless UGA employee
posted 10/03/08 @ 1:09 PM EST
Dang they don't give increases when your working here or when you retire! Once this starts it will be like raises is for employees, like every other year, or every 18 months. (Continued…)
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