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.
State of Illinois Payment
Section 17-127© of Public Act 100-0465, enacted August 31, 2017, provided CTPF a continuing appropriation for State contributions. As of July 27, 2018, the State has made payments of $11.69 million. This satisfies the required contribution under Section 17-127© of the Illinois Pension Code for the 2018 fiscal year.
Board of Education (CPS) Payment
The Chicago Board of Education (CPS) was required to make a total payment to the Chicago Teachers’ Pension Fund (CTPF) of $772.71 million for the 2018 fiscal year.
As of July 27, 2018, the total balance due to CTPF is $184.85 million.
Section 17-127(d)(1) of Public Act 100-0465, provided that the State of Illinois shall contribute $221.3 million for the employer (CPS) normal cost for the 2018 fiscal year. As of July 27, 2018, the State has paid $202.86 million, resulting in an outstanding receivable of $18.44 million for the fiscal year 2018 normal cost.
Revenue from the property tax levy (see below) is credited against the CPS required contribution. When the outstanding $18.44 million normal cost payment from the State and the estimated outstanding property tax levy of $155.37 million are credited against the $184.85 million outstanding CPS required contribution, the total outstanding balance owed to CTPF by CPS is $11.05 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 estimated amount expected from the 2018 property tax levy is approximately $415.00 million. As of July 27, 2018, CTPF has received $259.63 million in property tax payments toward the 2018 required contribution and an additional $155.37 million is estimated to be received, 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 July 27, 2018, members have paid $151.50 million (CPS) and $21.35 million (charter schools) for the 2018 fiscal year.