CTPF: Facing problems or a political and media attack on defined benefit pension plans? Introduction to the Chicago Teachers Pension Fund (CTPF)
The Chicago Teachers Pension Fund has been in existence for well over a century, but, for the most part, teachers are largely uninterested in it until they approach their own retirement.
While the Fund has continued to function smoothly, and proudly states that it has not ever missed payments to its retiree members, there is growing concern over its future.
The Chicago Tribune's campaign against all defined benefit pension plans is based on the same kinds of lies the Bush administration attempted to use to destroy Social Security in 2005.
Ironically, 1995 marked both the centennial of the CTPF and the commencement of a major onslaught on its fiscal integrity; that was the year that the Illinois General Assembly gave control of the Chicago Public Schools to Mayor Richard M. Daley, and passed laws, affecting the State of Illinois and the Chicago Board of Education, that significantly altered financial formulas for the CTPF.
As described in the Chicago Tribune editorial of Friday, March 28, 2008, it is a confusing and complex issue, involving the future welfare of Chicago teachers. The consequences are considerable, and time and money are rapidly running out. (Teachers working outside of CPS are covered by the state retirement system, which has its own problems.)
In future issues of Substance, we will try to keep everyone aware of the situation and the search for solutions. It is important to note the mission of the CTPF: “To provide, protect and enhance the present and future economic well being of members, pensioners and beneficiaries through efficient and effective management of benefit programs, investment practices and customer service, and to commit to earning and keeping the respect and trust of the participants through quality service and by protecting retirement benefits, in compliance with applicable laws and standards.”
By: Danny Weil
Author/attorney
One of the big issues that should be of concern to all public workers is the role of charter schools and their future pensions.
I received a list from State Teachers REtirement System or STRS, from California. They show all the charter schools and which ones pay ito STRS and which ones do not.
As to PERRS, the issue also should be of concern as more and more Educational Maintenance Organizations farm more and more of their work out to 'body shops' that do not pay into PERS or similar defined pension plans.
Taking down pensions is also on the list of neo-liberal concerns. The meddlesome members coupled with the 'free speech' money of pensions is an obstacle to the privatization of well, everything!
Danny Weil