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.

More Information

• 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.