Congratulations to the following incumbents, Lori Borgeson, Mike McCollor, Karen Odegard! As they have been re-elected by the members to represent the St. Paul Teachers’ Retirement Fund for three-years, beginning January 15, 2015. Results were reviewed and certified by the SPTRFA, and reported during the Annual Meeting. View the Board of Trustees election results. The Annual Meeting of the Members was held on Thursday, January 15. All members were invited to join us for the election of SPTRFA Trustees, as well as reports on membership, revenues and expenditures, and investments. Read the 2015 Annual Meeting handout.
St. Paul Teachers’ Retirement Fund Association invites you to read the Winter 2014 Newsletter!
- Memo to our Members from the Team at SPTRFA
On behalf of the entire SPTRFA Staff and our Board of Trustees, we want to thank each of you for your service in support of educating our future leaders and citizens. We are pleased to report that your Fund ended the 2014 fiscal year with assets of $1,045,435,000 and an 18.5% (net) return on investments, significantly exceeding our annual return target of 8%
- Retirement: Ready or Not
One of our goals is to provide you with educational tools to prepare you for retirement. This newsletter includes the first installment of our “Recommended Financial Reading” section. We’ve also included a section that explains the differences between a defined benefit and a defined contribution retirement plan.
- An Overview of New GASB rules for Public Pension Plans
New accounting rule changes for reporting public pension costs from the Governmental Accounting Standards Board (GASB) will be implemented in 2014-15. These GASB changes will require that school districts and other local governments, such as cities and counties, show their share of pension costs on their balance sheet.
NIRS study indicates defined benefit pensions plans are the most the economically efficient retirement plan – costing up to 48% less than 401(k) plans;
Read more the new analysis from the National Institute on Retirement Security (NIRS) online. NIRS is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy as a whole.
Important Reminder: Break in Service Required for Retirement Benefits
In response to a number of questions we’ve received recently, we thought we’d highlight the “Break in Service” rule.
In order to have a right to receive your retirement benefit from SPTRFA, Minnesota law requires a “complete and continuous separation for 90 days from employment in any form with Independent School District No. 625.” Importantly, “employment” for this purpose includes “service provided to the school district as an independent contractor or as an employee of an independent contractor.”
Under this rule, for example, employment with Teachers on Call for service as a substitute teacher in District 625 within 90 days of your final date of employment with District 625 would result in a failure of the Break in Service rule.
Please be advised that Minnesota law requires the SPTRFA to recover, with interest, amounts received by a member who fails to satisfy the Break in Service rule.
Substitute Teacher Status Changing to Independent Contractor And the Impact on SPTRFA Members
St. Paul Public Schools recently announced that it has contracted with Teachers on Call to provide all substitute staffing. As a result, substitute teachers will no longer be employees of the District, but rather employees of Teachers on Call, an independent contractor.
Given that this is a recent change, we wanted to provide a brief summary of how this relates to your benefits and status with the St. Paul Teachers’ Retirement Fund Association (SPTRFA). Please click to review the PDF document to learn more about this change.
The SPTRFA staff welcomes any pension-related questions and is here to help you.
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