"We are of course, thrilled to see a strong performance at the close of fiscal year 2011, remarked Kevin B. Huber, executive director. "We appreciate the guidance provided by our trustees and the hard work of our staff and fund managers. We always want to remember, though, that the fund is a long-term investor and we have to view our performance through that lens."

These returns are based on preliminary data and represent unaudited total fund returns at June 30, 2011.  

Diane Oakley, the executive director of the National Institute on Retirement Security testified before the U.S. Senate Committee on Health, Education, Labor & Pensions on July 12, 2011. The testimony discussed the important role that pensions play in supporting the economy. The testimony focused on three main points (indicated in italics).

1. Pensions strengthen national and local economies.

Retirees who are guaranteed income can continue to spend during a recession or times of economic uncertainty, providing an important stimulus for the economy.

Nationally, pensions play a vital role in strengthening the economy with a total economic impact of $756 billion, supporting more than 5.3 million American jobs.

In Illinois, guaranteed benefits provide an economic engine that returns $1.50 for every dollar spent. The 2009 NIRS study, Pensionomics, concluded that in Illinois alone, pension income had a total economic impact of more than $12.9 billion the economy and impacts every industry in the state.

2. Pensions ensure retirement self sufficiency and prevent elder poverty.

 Public pension benefits provide retirement security and peace of mind for the elderly who want financial independence and dignity in retirement. Guaranteed benefits ensure that retirees do not have to worry about stock market fluctuations and economic uncertainty. The rate of poverty for older households without pension income was six times greater than the rate among households that had pension income.

In Illinois, Chicago Teachers do not contribute to Social Security. Pensions are the sole source of income for a majority of CTPF retirees.

3. Pensions are the most economically efficient retirement plans - and cost as much as 50% less than defined contribution plans to administer.

Professionally managed pensions achieve greater investment returns as compared with individual retirement accounts. Over time, pensions deliver a security retirement income at a lower cost due to their economic efficiencies, professional asset management, lower costs, and better returns.  

Conclusion

Oakley concluded that pensions are the most cost efficient means for ensuring that American's can be self-sufficient in retirement.

Read the complete testimony here.

The National Institute on Retirement Security 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 employers, employees, and the economy as a whole.

Openings are still available at the afternoon sessions (attend one):

August 10th: 10:00 a.m., 1 p.m. - 3 p.m., or 4 p.m. - 6 p.m.

Seminars will be held in the CTPF office  203 North LaSalle Street, suite 2600  Chicago, IL  60601-1231

Reservations are required and are now being accepted for the afternoon session. Call 312.641.4464 to register. See below for parking and transit information.