2014 Legislative Update

Illinois legislators adjourned the spring session this past weekend without considering pension reform legislation for CTPF. Reform will continue to be at the top of agendas for legislators, and CTPF will continue to carefully monitor activities in Springfield. 

Legislators are scheduled to return to Springfield in November.  

We encourage you to share your thoughts with your legislators this summer when they are in their district offices. You can find more information about contacting legislators and training session for CTPF ambassadors here.

Spring Legislative Wrap UP

CTPF Receives $62.1 Million from State of Illinois

The Chicago Teachers' Pension Fund will receive approximately $62.1 million in funding from the Illinois legislature for Fiscal Year 2015 (FY15).
CTPF received $11.9 million in 2014.

State funding for CTPF is provided through two line items: an appropriation that the state historically contributes and a second line added by a statute that requires the state to pay 0.544 percent of CTPF's teacher payroll if its funded ratio falls below 90 percent.

House Bill 3793 included $50 million for CTPF in fiscal year 2015, a historically budgeted amount which has not been appropriated since fiscal year 2011. HB 6096 authorized the statutorily required $12.1 million for fiscal year 2015.

"Our members - Chicago's active and retired teachers, principals and administrators - have been calling on their legislators to restore funding since 2011, and this is clearly a step in the right direction." said Jay C. Rehak, president of the CTPF Board of Trustees and interim executive director. "We want to express our appreciation to the lawmakers who supported this funding for CTPF. I also want to thank Representative Esther Golar and the 11 additional sponsors who supported HR 816 which highlighted the need for more equitable CTPF funding."

In 1995, when legislators allowed the Chicago Public Schools (CPS) to divert CTPF's tax levy to the CPS operating budget, lawmakers agreed to fund CTPF at 20 percent-30 percent of the amount they funded the Illinois Teachers' Retirement System (TRS). While the state contribution has not reached the 20-30 percent threshold, the state has contributed $60 million-$75 million annually to CTPF for nearly two decades. The legislature eliminated their historically budgeted CTPF contribution in fiscal year 2012.

Under Illinois law, the amount that CPS owes CTPF will be reduced by any amount paid by the state of Illinois. The fiscal year 2015 required contribution from CPS totals $696.5 million.

"CTPF is a well-managed plan that has generated an 8.86 percent annual return over the last 35 years," said Rehak, "But a lack of employer contributions and falling support from the state of Illinois have taken a toll. Our funded ratio has fallen below 50 percent. CTPF trustees are committed to securing every possible dollar for our plan to protect our members' retirement security, and we appreciate this support from the state of Illinois."

Thank You to CTPF Supporters....

CTPF Trustees continue to advocate for legislation that will bring stable funding and increased state support to the fund. CTPF thanks the lawmakers who sponsored our legislative agenda this spring: 

1. HR 816 Resolution for Greater Parity between CTPF and TRS
   Sponsors: Rep. Esther Golar with Maria Antonia Berrios, Eddie Lee Jackson, Sr., Elgie R. Sims, Jr., Daniel J. Burke, Monique D. Davis, Arthur Turner, Cynthia Soto, Marcus C. Evans, Jr., Kenneth Dunkin, Jaime M. Andrade, Jr., and Christian L. Mitchell.  
2. SB 3148/HB 5731 Re-Establish CTPF Contribution Tax
   Sponsors: Sen. Mattie Hunter and Rep. Kenneth Dunkin.  
3. SB 3282/HB 3899 Monthly Contributions to CTPF
   Sponsors: Sen. Donne Trotter and Rep. Elgie R. Sims, Jr.  
4. SB 3127/HB 5334: Increase State Contributions to CTPF
   Sponsors: Sen. Emil Jones III and Rep. Monique D. Davis.

Find more information on the Education and Advocacy Page at www.ctpf.org. 

Other Reform Legislation 

Following are other bills and legislation that
have been introduced or passed during the 98th legislative session. None of these bills impact CTPF members. 

City of Chicago Pension Reform 

SB 1922 includes benefit changes for both Tier 1 and Tier 2 members, including a cut in COLA benefits, and increases in employee and employer contributions, and establishes an actuarially determined funding schedule for both funds.

Current Status:

This legislation passed both the Illinois House and Senate on April 8 and currently waits the governor's signature. 

Click here to read a fact sheet on this bill.

Cook County Pension Reform 

A comprehensive plan to overhaul the Illinois Pension Code for the Teachers' Retirement System (TRS), State Employees Retirement System (SERS), State Universities Retirement System (SURS), and the General Assembly Retirement System (GARS) was signed into law by Gov. Pat Quinn on December 5, 2013. This bill does NOT currently impact CTPF.

Public Act 98-0599 eliminates the State systems' unfunded liability by 2045, primarily by reducing benefits for retired and active members.

Current Status:

The law was scheduled to go into effect on June 1, 2014, but a temporary restraining order has delayed implementation.

Click here to read a fact sheet on this law.

Click here to review CTPF's webinar on SB1.

Click here to read the Q and A from the webinar.

CTPF's Role

The Illinois legislature determines the laws and rules that govern our fund. The CTPF Board of Trustees administers the law and protects the Fund's finances to ensure retirement security for all members.