2018 Pension Payment Update

News

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

As of August 31, 2018, the CPS fiscal year 2018 required contribution of $772.71 million has been paid in full. A breakdown of the payment includes:

  • $221.3 million from the State of Illinois for the fiscal year 2018 normal cost requirement
  • $426.0 million in property tax receipts
  • $125.4 million from the Chicago Board of Education

The State of Illinois made its required contribution of $11.69 million.

Revenue from the property tax levy is remitted directly to CTPF and credited against the CPS contribution. Additional revenue received from the levy will be credited to the  CPS 2019 contribution.

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. As of August 31, 2018, members paid $158.6 million (CPS) and $21.3 million (charter schools) for the 2018 fiscal year.

Financial Statements

CTPF is committed to fiscal transparency. Audited financial statements and actuarial reports can be found in the Comprehensive Annual Financial Report.