Over 100 years experience serving Chicago's teachers
In May 1895, the Legislature of Illinois passed the following pension law which went into effect on July 1, 1895:
AN ACT TO PROVIDE FOR THE FORMATION AND DISBURSEMENT OF A PUBLIC SCHOOL TEACHERS’ AND PUBLIC SCHOOL EMPLOYEES’ PENSION AND RETIREMENT FUND IN CITIES HAVING A POPULATION EXCEEDING ONE HUNDRED THOUSAND INHABITANTS.
APPROVED MAY 31, 1895. IN FORCE JULY 1, 1895.
Members of the Board of Education, the superintendent of schools, and two representatives elected annually by the teachers and employees of the public schools under control of the Board of Education formed the first Board of Trustees of the Chicago Teachers’ Pension Fund.
The names of the Trustees as recorded in the proceedings of the first official meeting, November 27, 1895, are as follows: Messrs. Cusack, Halle, Keane, Thornton - first President of the Board of Trustees, Drezmal, Errant, Pettibone, Lane, Brenan, Mallette, Trude, Lindblom, Blount, Kohtz, Kirk, Rosenthal, Miller, Schneider, Mr. T.J. Waters - elected to represent the teachers and school employees, Mrs. Sherman - first Vice-President of the Board of Trustees, Mrs. Hull, Mrs. Frake, Mrs. Ella F. Young - elected to represent the teachers and school employees.
The official rules of the Board were adopted and approved on December 31, 1895. There were 8,000 members of the pension fund at its inception. The Board began collecting pension contributions on January 1, 1896. The compulsory pension contribution was 1% of the individual’s salary. The funds were entrusted to the custody of the City Treasurer.
The first applications for an annuity were received by the Board in March 1896 and granted in June 1896. Maximum pension was $450.00. Women could retire with 20 years of service; men were required to have 25 years of service to retire.
In 1903 the non-teaching employees were dropped from participation in the Chicago Teachers' Pension Fund. Disability pensions were granted in 1907 for members with a minimum of 15 years of service. This was later reduced to 12 years of service (1921). Pension was prorated based on the total of service contributions compared to $850.00. The lump-sum death benefit, a 100% refund of contributions, was introduced in 1947. The first provision for a "widow’s" pension was introduced in 1953. This became a "surviving spouse" pension in 1974.
In 1907 the composition of the Board of Trustees changed. Six trustees were elected by the teachers and 3 members were appointed by the Board of Education (B of E). The Chairman of the B of E finance committee and the president of the B of E were ex officio members. This make up of the Board continued until 1959 when the "ex officio" members were eliminated.
An illustrious person of historical note served as president of the Board of Trustees from 1905 to 1907. Miss Jane Addams, the founder of Hull House, was appointed to the Board by the Board of Education. She was elected president in 1905 and served until the Board reorganization took place in 1907 at which time she indicated that her duties with Hull House were demanding more of her time and she was happy to no longer serve as president. She continued as a member of the Board until 1908, when her name no longer appears in the meeting minutes.
In 1981 the number of Trustees was increased by one when the law was changed to provide for a pensioner trustee. A second pensioner trustee position was added in 1985. At the same time one Board position was eliminated. A third pensioner trustee position was added to the Board in 1995. In that same year the principals’ elected their first representative to the Board. This brought the total membership to twelve trustees.
Today CTPF is over 110 years old and young. The Board is comprised of twelve members: six active teachers elected by the active contributors; three pensioners elected by the pensioners, one principal elected by administrators, and two appointees of the Board of Education.
CTPF has never missed paying a monthly pension check and has weathered the many historic events that have challenged our nation. Today, the Fund has over 58,000 active, inactive and retired members. There are over 20,000 retired members and survivors’ receiving a monthly pension benefit.
The first reported sum to be invested in 1896 was $16,000 and the first annual pension to be paid was $450. Today the Fund has over $10 billion in assets.
Where once the requests for annuities, refunds and survivor benefits were handled directly by the trustees and the clerk of the Board, today CTPF operates as an independent organization, governed by the Board of Trustees and administered by the Executive Director to oversee the day to day operations of the Fund and to assure that benefits continue to be paid out on a timely basis.
The Trustees continue to work to safeguard and improve the benefits to the members of the Chicago Teachers' Pension Fund. Together, with a dedicated staff, they seek to fulfill their stated mission.