| Vol. 36 | December 2006 | No. 2 |
| President's Message | Union County Educators Venture to Japan | ||||
| Congratulations!! | NJEA CONVENTION 2006 | ||||
| Teachers' Pension and Annuity Fund 88th Annual Convention |
UCEA Officer Elections | ||||
| Unclaimed Pension Funds | HIPP Foundation for Excellence in Education Grants Available | ||||
| Soehl Middle School Students Address United Nations |
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We often hear the frustrations of the world of education, especially in "faculty room talk." From that talk, the feeling comes across that there is little we individuals can do to remedy the ills of our profession. How wrong! There is a remedy for what is ailing us. Like it or not, that remedy is political action. Our legislators, both in Trenton and Washington, pass laws that affect us significantly. At this time, they are in the position to pass, or not pass, laws that will greatly affect our future. Pensions and Post-Retirement Medical Benefits are currently at risk. Some individuals believe that these are "gifts" from the state. We earned these benefits through a career of public service. We accepted lower salaries than we could have received in other careers because we believed the pensions and post-retirement medical benefits were a form of deferred compensation. We are not the cause of the current fiscal problem. For at least the past ten years, the state has not fulfilled its obligation to make payments into the pension fund. Even when the state failed to make the necessary contributions to the pension system, we, public school employees, have continued to make our full required contributions out of each paycheck. It is unfair and unreasonable to expect us to accept a lower level of benefits than we have been promised and have earned. New Jersey's public schools do not match the much higher salaries available to professionals in the private sector. Therefore, in order to remain competitive in the tight professional labor market, New Jersey must continue to offer good benefits. Attracting high-quality teachers and education support professionals is vital to maintaining high quality schools. Investing in quality today helps ensure prosperity in the future. |
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Teachers' Pension and Annuity Fund
88th Annual Convention The meeting was convened to elect a person to the TPAF Board of Trustees. Running unopposed and duly elected by the convention was James Joyner from Passaic County. Following the election, Frederick Beaver, Director of the Division of Pensions and Benefits, gave a short report. He stated that the system is not seen as broken, but as a good system for career service personnel. He did recognize that the system has been struggling with receiving and responding to requests from members. As a result, he and his department have been able to take TPAF off the state budget, and are now funded separately from the rest of the state agencies. This move is an attempt to improve service. Following Mr. Beaver, William Clark, the Director of the Division of Investments, gave a short report and then took questions from the body. He stated that last year was a good year for the fund, but some of the issues of our investment portfolio became apparent. Our investment division produced a total return of 9.65% last year. However, if the fund had just followed the S&P and other indices, the return would have only been 8.43%. The fund did well because the managers: 1) heavily invested in international markets _ beyond the allowances of our guidelines _ in which a weak dollar provided greater returns for our pension fund. 2) took large positions in energy companies. 3) bought out bonds with shorter maturities. As for the future, the fund is looking into other areas for investing. Historically, we have not been involved in real estate and private equity. The fund is looking into altering its investment strategy. 1) Increase diversification and move into other asset classes. 2) Asset liability management _ not just to generate returns, but also to provide benefits. As a result of inflation, the fund needs returns to go up as inflation goes up, so it is looking into commodities and infrastructure. 3) External management of the expanded investments would be a necessary course of action to deal with the added responsibility. There has been a lot of press concerning the third strategy mentioned. In 1983, Governor Kean stated that the investments department was understaffed with 61 employees managing a $10 billion fund. Today the fund is $85 billion with a staff of 67. Obviously, it is still understaffed. And, if the fund is to grow enough in order to accommodate the current and future members, it is advised that we move into the stock market. The fund must hire an investment firm to follow our investments closely because our staff would not be able to handle that as well as the other investments. Most other state pensions have already taken this course and have been very successful. There have been problems with outside management of funds in other states, and our director, the Governor, and the Board of Trustees have developed a policy to deal with the hiring of an outside firm. First, any firm that has contributed more than $250 to any political candidate will be excluded. Also, a consulting firm that specializes in the hiring of investment firms is being consulted in this process. The newspapers have reported that the commission on this proposal would be in the area of $221 million dollars. This is based on projected returns of the investment. This figure would be a 1% commission rate. If the investments did not do as well as projected, then the commission would decrease. |
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The UCEA continues to provide service even after you may leave the education field. Following the annual Teacher's Pension and Annuity Fund meeting, we received a listing of all pension accounts that have been inactive for the fiscal year July 1, 2005 to June 30, 2006. For your information, any pension account with assets that remain inactive for a two year period is turned over to the N.J. State Treasury. Prior to the end of the two year period you must contact the Division of Pensions and decide on the final fate of your account assets. If you have started teaching in another state you may be able to apply your NJ credit to their plan. At the very least you should request a refund of your contributions. At the UCEA office, we have sent letters to the last known address of the owners of the unclaimed accounts informing the owners of their rights. If you know anyone on the list below, please mention this article to them, and urge them to call our office. We would like to offer some final service.
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Union County Educators Venture to Japan
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David Rodriguez pictured below with his proud mother, UCREA member, Johanna Rodriguez and Governor Jon Corzine. David received an NJEA Award for Excellence in the field of Entertainment. A graduate of Scotch Plains-Fanwood High School, David Rodriguez is a nationally regarded producer and presenter of both live and televised events. He has produced six seasons of NBC-TV's Showtime at the Apollo, AOL's Rod Steward Live at the Apollo, and MTV's James Brown at 70. Rodriguez served as Executive Director for Harlem's landmark Apollo Theater from 2001 until 2006. During his tenure, theater usage increased from two to nearly ten performances per week. In addition, he oversees the creation of education and outreach programs to over 40,000 young people each year. |
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Nominations for the offices of President, Vice-President, Secretary and Treasurer are open for the term of 2007-2009. A detailed description of the qualifications for, as well as the responsibilities of, each of these offices can be found in your county calendar. Nominations for these positions can be made only by petition on forms prescribed by the Elections Committee. Petitions must contain at least forty (40) signatures of active members of the Association, with at least five signatures from each of five districts within Union County. Contact the UCEA Office for petition forms. All petitions must be submitted to the Chairperson of the UCEA Elections Committee, Rosemary Reilly, no later than December 29, 2006. | |||||
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HIPP Foundation for Excellence in Education Grants Available New Jersey's public school employees are among the most creative and dedicated in the nation. Each day our classrooms are alive with new, exciting, creative, innovative projects. The NJEA Frederick L. Hipp Foundation for Excellence in Education makes it possible for school employees to receive grants that will help them bring creative ideas to life. The only foundation of its kind in New Jersey, the Hipp Foundation supports initiatives to promote excellence in education. More than $1 million in grants for innovative educational projects that represent a bold, fresh approach by school employees has already been awarded. You can reach for your dreams. Apply for a Hipp grant and bring your innovative ideas to life. Questions? Contact the foundation at hippfoundation@njea.org. Completed grant applications are due at NJEA Headquarters by March 1, 2007. Grants will be reviewed and approved for the 2007-2008 school year by late May. This year, two Union County districts were awarded HIPP grants for innovative programs. Kevin LaMastra, Marie Henry, and Michael D'Amato from Soehl Middle School developed a project to adopt a border community in the Dominican Republic. Students at Soehl MS will become familiar with problems that are faced by migrant workers in this region, and they will learn about career and educational opportunities in the field of international humanitarian service. The project is based on the United Nation's millennium goals to eradicate global poverty, hunger, and related problems. Carolyn Curti, Tiffany Sofranko, and Barbara Tedesco from Harrison Elementary School in Roselle earned a grant for their program that introduces elementary school children to college. "Future College All-Stars" encourages elementary children to start thinking about college. Every first Friday of the month is College Friday. All the teachers adopt a university and dress in college gear and decorate their classrooms to promote the college experience. The students are taught to set career goals and to plan how to achieve those goals. Students write a letter about what they believe they will be doing in 25 years. Then, they will visit their partner university for a day long visit. Students will create a Power Point and scrapbook of their experience. If you have an innovative idea that needs funding, check out the NJEA website for information on Hipp Foundation grants. You never know, you just might get it! | |||||
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Soehl Middle School Students Address United Nations Soehl students Ever Alvarado and Amber Appello, along with their teacher Kevin LaMastra, were invited to participate in the 9th annual United Nations Conference on Human Rights at United Nations headquarters. The Linden students joined a team of fifty international students attending the conference in New York, where they collaborated to write a student voiced plan of action to confront human rights issues related to global migration. The students were given homestays with UN familites representing India and France. After two days of intense collaborative learning where students shared research and first-hand experiences on the topic of global migration and human rights, the group met on the third day at the famous horseshoe shaped UN conference table. Along with students from Mexico, the Dominican Republic, United Kingdom, and the Persian Gulf region, the Linden pair worked into the night deliberating and drafting a plan of action that would be sent to over 300 student leaders participating through various teleconference sites around the world. Ten additional Linden students and their teacher Michael D'Amato viewed the proceedings as guests of the Bill and Melinda Gates School of the Future in Philadelphia. At the conclusion of the conference, the youth drafted plan of action was unanimously approved by all participants. The new President of the General Assembly, Bahrain's H.E. Sheikha Haya Rashed Al Khalifa, personally visited the summit and accepted the presentation of the document. Soehl students and faculty have been participating in UN programs for five years. Through their participation, they have been recognized for innovation and best practices in helping students to think beyond borders and to assume roles as responsible global citizens in a more interdependent world. |
