CPS Makes Partial 2017 Pension Payment
The Chicago Board of Education (CPS) is required to make a payment to the Chicago Teachers’ Pension Fund (CTPF) of $733 million for the 2017 fiscal year, ending June 30, 2017. Prior to today, the balance due to CTPF was $714 million.
Today, CTPF received $464 million from CPS, bringing CPS’s total pension contribution to $483 million for fiscal year 2017, leaving $250 million outstanding. CTPF expects to receive the balance of the payment from CPS through an estimated $250 million tax levy by the end of August. The State restored CPS’s power to levy a pension tax in 2016. Proceeds from the tax levy will be remitted directly to the Fund.
CTPF is currently working to ensure that the Fund is made whole by receiving interest on the delayed payment.
“While we appreciate this partial payment, it is our fiduciary responsibility to safeguard our members’ pensions, protect the Fund, and make it whole. Our Board has made it clear to CPS that we cannot accept anything less than full payment and compensation for any delays, and our Trustees are fully committed to taking whatever action is necessary to reach this outcome,” said Jay C. Rehak, President of the CTPF Board of Trustees.