Legislative Update 

The Chicago Teachers' Pension Fund is governed by Illinois law.

The CTPF Board of Trustees set the following legislative agenda during their February 2012 meeting, and is working to actively promote these bills in Springfield. Each bill has been sponsored in the Illinois House and Senate. CTPF encourages all members to contact your legislators and share your support for these measures. You can read the complete text of each bill and find its status by clicking on the links.

Rationale: Under current practice, contributions to CTPF from the CPS Board of Education are reduced by any amount CTPF receives from the State of Illinois. This proposal eliminates the offset which would increase total fund revenues.

2. Increase State of Illinois Contributions to CTPF

HB 5232 sponsored by Representative Monique D. Davis (D)

SB 3628 sponsored by Senator Kwame Raoul (D)

Summary: These bills require the State of Illinois to contribute $270,347,800 to CTPF in 2013. After 2013, the State would be required to make an annual CTPF contribution equal to 10% of the State contribution to the Teachers' Retirement System.

Rationale: In 1995 the State of Illinois agreed in principal to fund CTPF at an amount equal to 20-30% of the amount it awards to the Teachers' Retirement System. This funding failed to materialize. These bills ask the State of Illinois to fulfill its promise to fund pensions for Chicago's teachers.

HB 5333 sponsored by Representative Marlow H. Colvin (D)

SB 3742 sponsored by Senator Kwame Raoul (D)

Summary: These bills increases the 2013 CPS contribution to CTPF from $196 million to $307 million.

Rationale:  In 2010, CPS was required to pay $307 million to CTPF, and the amount was scheduled to increase in future years. CPS asked for and received pension "relief" from the Illinois legislature in 2010, which reduced the CPS obligation for fiscal years 2011-13. When the relief measure expires, CPS will be required to pay more than $557 million to fund CTPF pensions in 2014. These bills reset the CPS obligation to the 2010 level, in order to "ramp up" or prepare for larger future payments. 

4. Increase the cap on retiree healthcare spending

HB 5520 sponsored by Representative Daniel J. Burke (D)

SB 3598 sponsored by Senator Iris Y. Martinez (D)

Summary: These bills change the structure of the health insurance spending cap from a flat rate to an amount that adjusts annually. The annual adjustment would increase based on the average of the medical care services and commodities indexes in the consumer price index.

Rationale: The amount that CTPF can spend to subsidize retiree health insurance premiums is currently limited to $65 million per year. The spending cap was set in 2004, and since that time the number of retirees and the cost of care have nearly doubled. The cap needs to be raised so CTPF can continue to help retirees cope with rising health insurance costs.

5. Redefine Re-Employment Provision for Retirees

HB 5744 sponsored by Representative Robert Rita (D)

SB 3597 sponsored by Senator Iris Y. Martinez (D)

Summary: these bills clearly outline the return to work rules for members who seek re-employment in the CPS system.

Rationale: If a retiree wants to return to CPS employment and maintain a pension, there are certain restrictions which must be met. These bills establish the limits of CPS re-employment, and outline the steps a retiree must take to become re-employed without forfeiting pension benefits.

Action Items

CTPF encourages all members to take time to call, write, or meet with legislators while they are in their home offices. Legislators should understand that these bills are important priorities for CTPF members. 

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Advocate for your pension. If you need information to prepare for a visit or to share with friends and neighbors, click here to read some important facts and common myths about CTPF pensions. 

Click here to look up your Illinois legislators.