2018 Pension Payment Update
Established by the Illinois state legislature in 1895, the Chicago Teachers’ Pension Fund (CTPF) manages assets for nearly 86,000 members and provides pension and health insurance benefits to more than 28,000 current beneficiaries.
CTPF funds pensions through revenue returned on investments and from four external sources:
- the Chicago Board of Education
- the State of Illinois
- a property tax levy
- member contributions
Payments from external sources for the 2018 fiscal year are due to the Fund on June 30, 2018. Since June 30 falls on a Saturday, payments due in 2018 are expected by the close of business on June 29, 2018.
State of Illinois Payment
Public Act 100-465 enacted August 31, 2017, provided CTPF a continuing appropriation for State contributions. As of June 27, 2018, the State has not made contributions toward this balance. Payment is expected no later than December 31, 2018.
Board of Education (CPS) Payment
The Chicago Board of Education (CPS) is required to make a total payment to the Chicago Teachers’ Pension Fund (CTPF) of $772.71 million for the 2018 fiscal year.
CPS makes payments during the year which are credited against this amount. As of June 29, 2018, the total balance due to CTPF is $271.69 million.
Revenue from the property tax levy (see below) is credited against the CPS required contribution. When the outstanding property tax levy of $242.20 million is credited against the $271.69 million owed to CTPF by CPS, the total outstanding balance owed to CTPF by CPS is $29.49 million.
Property Tax Levy
Public Act 99-521, effective June 1, 2017, reestablished a property tax levy (the cap for which was increased by Public Act 100-465) for the purpose of funding Chicago Teachers’ pensions. Revenue from the property tax levy is remitted directly to the Fund as it is received by the Cook County Treasurer, and credited against the CPS required contribution. The total amount expected from the 2018 property tax levy is approximately $415.00 million. As of June 27, 2018, CTPF has received $172.80 million toward the 2018 payment and the balance of $242.20 million is expected, as tax revenue is remitted, no later than August 2018.
Each pay period, CTPF members contribute a portion of their salary to fund pensions. The required member contribution for 2018 is 9% of pensionable teacher salaries. Member payments are remitted no later than 30 calendar days after each pay date. As of June 27, 2018, members have paid $144.03 million (CPS) and $19.33 million (charter schools).