CTPF Executive Director Testifies in Support of HB 2948
April 4, 2017, CTPF Executive Director Charles A. Burbridge traveled to Springfield to testify before the House Appropriations-Elementary & Secondary Education Committee during a subject matter hearing which included House Bill 2948. The bill, sponsored by Representative William Davis (D- East Hazel Crest), Committee Chair, addresses the issue of State of Illinois pension parity for CTPF.
CTPF supports the measure which requires the State of Illinois to make a $465 million contribution to CTPF in fiscal year 2018, and then make annual contributions equal to 10% of the State revenue provided to the downstate teachers’ retirement system.
“House Bill 2938 addresses a long-standing inequity in funding and restores State revenue long-promised to CTPF,” said Burbridge. “CTPF represents about 17% of the active and retired teachers in our state, but we receive less than 1% of the pension funding dollars allocated by the State. It’s time to address this issue, and we appreciate the time and attention this committee took to understand this inequity.”
Burbridge answered legislators’ questions and shared additional information about the legislation. The Committee did not take any action. CTPF will continue to update members on the status of this bill and will provide additional information as it becomes available.
- Illinois statutes specify that revenue for the Chicago Teachers’ Pension Fund comes from four sources: employer contributions, employee contributions, state appropriations, and investment earnings.
- A financial crisis hit CPS in the early 1990s, and Illinois legislators allowed a change in the structure of pension funding. Lawmakers allowed CPS to keep revenue from a tax levy earmarked for pension funding.
- When legislators took this step, they also affirmed the State’s intent to continue to provide equitable funding for CTPF in the amount of 20-30 percent of the amount provided to the downstate/suburban system.
- Instead of remaining a steady source of revenue, State funding has eroded over the years. CTPF now receives less than a penny for every dollar sent to fund downstate teacher pensions.