A Message from Charles A. Burbridge,
CTPF Executive Director

This weekend, the Chicago Tribune published an editorial from Forest Claypool, executive director of the Chicago Public Schools. 

We appreciate Mr. Claypool's willingness to hit the ground running, and to try and address the serious financial issues that face the Chicago Public School system. 

As executive director of the Chicago Teachers' Pension Fund, with a fiduciary responsibility to our Fund and its members, I agree that Chicago taxpayers should not be forced to choose between educating children and paying teacher retirements. I want to make it clear that fully funding pensions is part of the cost of educating our children. A teacher's contract includes the promise of a pension, and we know from recent court rulings that those promises must not be broken.

Unfortunately, the proposals currently being offered, without significant changes, fall short of fully funding pensions for retirees. We know that there aren't any shortcuts or easy solutions, but the problem can be solved. CTPF needs guaranteed actuarially based employer funding. The Illinois Municipal Retirement Fund (IMRF) provides an excellent example of the difference this makes. IMRF employers are required to make appropriate contributions. IMRF can take legal action to recover payments if the employer fails to make the required contributions - and this guarantee has shielded their organization from funding holidays and underpayments. Their current funded ratio is above 90%. CTPF, after two decades of underfunding and pension "holidays" hovers just above 50%.

We know that when the employer is required to make payments, the pension system works. An increase in state contributions and the reinstatement of our tax levy are important steps toward full funding.

Partial payments, pension holidays, and budget "relief" for CPS only exacerbate our current condition, and cannot substitute for revenue. We look forward to a pension funding solution which remedies the mistakes of the past and restores a solid foundation for the future.

CTPF Legislative Update 

ACT NOW: Oppose Senate Bill 318

Legislation reduces CTPF funding

Oppose Senate Bill 318

CTPF opposes Senate Bill 318, which combines provisions from two other bills, SB 316 and HB 3695. 

The new bill, which will be introduced today:

1. requires the State of Illinois to pick up the "normal cost" contributions for CTPF, 
2. reduces the CPS required contribution for FY 2016 and FY 2017,
3. extends the time CPS has to fully fund pensions by four
   years to 2063,
4. restores the pension tax levy, and 
5. offers active Tier 1 employees a choice between accepting a reduction to a Tier 2 cost of living adjustment (COLA), or keeping a Tier 1 COLA, with a freeze pensionable salary going forward. 

Call to Action

Please reach out to your Illinois Senator and ask him or her to vote No/Present. CTPF opposes this legislation which underfunds pensions. CTPF cannot afford another pension "holiday."

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