When you join the Chicago Teachers’ Pension Fund, you participate in a plan that has provided secure retirement pensions for Chicago Public School teachers for more than a century. This booklet provides an overview of your benefits.

The Chicago Teachers’ Pension Fund (CTPF) is a public employee retirement system that benefits teachers and certain other employees of the Chicago Public Schools, approved charter schools, and the Chicago Teachers’ Pension Fund. The CTPF, established by the State of Illinois, is administered in accordance in accordance with Chapter 40, Act 5, Articles 1, 17, and 20 of the Illinois Compiled Statutes.

The CTPF’s role is to prudently manage the assets supporting the pension plan and administer the entitlements and benefits provided by the plan. The CTPF is governed by a Board of Trustees made up of 12 members, which include 6 contributing teachers, 3 pensioners, 1 contributing administrator, and 2 Chicago Board of Education members. The Board of Trustees oversees the fund’s benefit programs, approves all benefits, makes investment decisions for the fund’s assets, and provides general oversight to CTPF operations.

Combining service credit earned with the Chicago Teachers’ Pension Fund with service earned in the other 11 Illinois public retirement systems covered by the Illinois Retirement Systems Reciprocal Act can greatly enhance your pension. Understanding reciprocity and how you may benefit can influence how and when you retire.

The Illinois Retirement Systems Reciprocal Act (Reciprocal Act) gives retiring Illinois public employees the option to combine service credit earned in all Illinois public retirement systems (except local police and fire pension funds). The Chicago Teachers’ Pension Fund (CTPF) is one of the 12 Illinois public retirement systems covered by the Reciprocal Act.

Under the Reciprocal Act, you may combine service credit upon retirement or death. The total combined service credit is then used to determine your eligibility for pension benefits from each system and the amount of those benefits.

Reciprocity is not mandatory. If you choose to use the provisions of the Reciprocal Act, the systems will exchange information regarding service credits, salaries, and other data to determine your pension benefits.

Planning ahead and maximizing your pension at retirement is an important financial decision. If you earned service credit before July 1, 1998, the Chicago Teachers’ Pension Fund offers an option to upgrade your service and increase your pension.

Your CTPF retirement pension is based on three items:

• the service credit you have earned
• the best four-year average annual salary in your last ten years of service
• a pension percentage

The 2.2 upgrade increases the retirement pension for members with service credit prior to July 1, 1998, by increasing the pension percentage. Service credit earned after July 1, 1998, is calculated using the pension percentage of 2.2%. For service credit earned before July 1998, the pension percentage can be as low as 1.67%. By taking advantage of the upgrade option, the 2.2% pension percentage will be used for all your service credit and your pension will increase.

The Chicago Teachers’ Pension Fund can help secure your future if you suffer from a permanent disability and are no longer able to work. This brochure outlines the options and benefits provided by duty disability benefits and disability retirement pensions.

The Chicago Teachers’ Pension Fund (CTPF) offers two types of disability benefits:

• Duty disability benefit: available for contributors who become permanently incapacitated for duty while under age 65. The disability must be the result of injuries sustained or a hazardous condition encountered in the performance or in the scope of one’s duties, and not the result of the contributor’s own negligence.
• Disability retirement pension: available for contributors with at least 10 years of service credit.

Purchasing service credit will increase your pension at retirement and allow you to retire sooner. The Chicago Teachers’ Pension Fund offers several opportunities for purchasing additional service credit. Most leaves of absence qualify for the purchase of service credit, including:

• employer-approved leaves, including time off for maternity/paternity, study, and illness
• time lost due to the economic layoff during the 1975-1976 school year.

A leave of absence must have been unpaid and approved by your employer. The maximum service credit you can purchase for leave of absence periods is 36 months.

The survivor and death benefits provided by the Chicago Teachers’ Pension Fund are an important part of your family’s financial future. Understanding these benefits can bring you and your loved ones comfort and peace of mind.

The Chicago Teachers’ Pension Fund (CTPF) provides survivor and death benefits which include:

• survivor pensions payable to a member's eligible spouse and/or eligible minor child(ren)
• a lump-sum death benefit payable to a member's designated beneficiaries or estate
• a refund of excess contributions payable to a member's designated beneficiaries or estate
• a reversionary pension payable to anyone designated by the member

The amount and the method of payment depend on your years of service credit, who is eligible, and whether you die before or after you retire.

Choosing a health insurance plan for yourself and your eligible dependants is one of your most important retirement decisions. The Chicago Teachers’ Pension Fund offers retirees a comprehensive health-care program designed to ensure good health and provide high quality service at a reasonable cost.

The Chicago Teachers’ Pension Fund (CTPF) provides a comprehensive program of quality health care coverage for retired teachers and their eligible dependants.

You have many options for health insurance coverage for yourself and your family, and you will be given the opportunity to review and change your choices annually. This booklet provides information on the following:

• COBRA - when you retire, COBRA allows you to continue insurance coverage with your former employer for 18 months
• CTPF-Sponsored Health Insurance Plans - CTPF offers a number of health insurance plans for CTPF retirees
• Medicare - upon reaching age 65, you are Medicare eligible, and CTPF requires that you enroll in Medicare if you are enrolled in a CTPF-sponsored health insurance plan
• Health Insurance Rebate Program - each year, CTPF rebates a portion of health insurance costs for eligible retirees.

When you leave your employer, you need to carefully consider what to do with the assets you have accumulated in the Chicago Teachers’ Pension Fund. The decision you make can affect your future financial security. This brochure explains your options.

Even if you have contributed for just a few years, the pension credit accumulated in the Chicago Teachers’ Pension Fund (CTPF) is a valuable asset. Unlike other investment vehicles, a CTPF pension is guaranteed for life, does not lose value, and includes an automatic annual increase.

As a member leaving employment, you have a number of options available for managing your pension assets. Depending on your stage in life, you may retire, choose to leave your contributions and service credit in CTPF until you retire, roll over your assets into another approved retirement plan, or take a refund of your contributions and forfeit your future pension and benefits. The refund or rollover options may be exercised 60 days after your resignation.

It is essential that you understand your options in order to make an informed decision. You may wish to consult with your own financial advisor or schedule a counseling session with CTPF’s Member Services department before you make your decision.

Depending on your stage in life, retirement may be on the horizon or still seem remote. In either case, careful planning helps ensure that you and your family receive the maximum pension benefit from the Chicago Teachers’ Pension Fund.

The Chicago Teachers' Pension Fund (CTPF), is a defined benefit retirement plan that provides a retirement pension based on your salary and service credit. After you accumulate five years of service, you become a vested member of CTPF and qualify for a lifetime pension once you meet minimum age requirements. and your eligible survivors qualify for a lifetime pension once you meet certain age and service-credit criteria. This brochure provides essential information about your retirement pension - how it works, items you need to consider, and your responsibilities as a retiring member.

Your CTPF pension:

• is paid throughout your lifetime
• increases 3% annually (AAI)
• includes an early retirement provision so you may retire early without reduction, if you qualify.
• may be combined with service credit from other Illinois Reciprocal Retirement Systems to increase your benefit .
• offers survivor pensions and death benefits