CTPF Financial Update as of June 30, 2021

CTPF Posts Record Returns at Close of 2021 Fiscal Year

The Chicago Teachers’ Pension Fund (CTPF) today announced a 28.68% net return on investments for the 2020-21 fiscal year. The record-setting return exceeded both the Fund’s benchmark and the 6.75% investment assumption.  

“Our investment team has done an excellent job of navigating a volatile year and implementing our Trustees’ investment policy,” said Carlton W. Lenoir, Sr., Executive Director. “While we appreciate these results, we are long-term investors, and we view our performance through that lens. These results demonstrate that our investment policy works and produces results for our members and stakeholders, even during dynamic times.” 

On a net basis, the Fund’s portfolio has outperformed the total benchmark over all periods: 

  Fiscal 2021 Last 3 Years  Last 5 Years  Last 10 Years  Last 25 Years  Since Inception (1/91)  
CTPF  28.68%  12.17%  11.68%  9.18%  7.97%  8.72%  
Benchmark  27.03%  11.82%  11.36%  8.88%  7.58%  8.42%  

CTPF’s assets totaled $13,145,261,578 for the fiscal year ending June 30, 2021. This is the highest fiscal year close in the history of the Fund.

CTPF utilizes professional fund managers to implement the Fund’s investment policy, designed to obtain the highest expected return on investments with an acceptable level of risk. CTPF invests prudently in a diversified portfolio designed to weather market volatility over the long term. Adherence to an appropriate and well-defined asset allocation policy remains the best course of action to manage the path to successful attainment of long-term investment goals.  

Sources of Revenue 

CTPF funds pensions through revenue returned on investments and four external sources: 

  • The Chicago Board of Education (CPS)
  • The State of Illinois 
  • Property tax levy  
  • Member contributions  

External Sources Update 

Legislation passed in 2016 and 2017 reestablished a dedicated tax levy for CTPF, reformed the Illinois education funding formula, established the State’s obligation to fund the normal cost of Chicago’s teacher pensions, and for continued funding to offset the cost of retiree health insurance.  

A breakout of the $863.4 million in total contributions received to date for Fiscal Year 2021 include:  

  • $305.6 million* in property tax receipts 
  • $266.9 million from the State of Illinois for normal costs, retiree health insurance and other required contributions  
  • $211.9 million from employee contributions 
  • $79.0 million from the Chicago Board of Education 

*The remaining balance of $234.4 million is expected to be paid from the property tax levy and received by December 31, 2021.  

Funded Ratio 

CTPF’s funded status is calculated by the Fund’s actuary once a year using data as of June 30. The next actuarial report will be available in the fall.  

CTPF Pensions are Secure 

When members vest, they qualify for a lifetime pension, guaranteed by the Illinois Constitution. Pensions are determined by a formula, and do not change with market conditions. 

*Information is preliminary as of August 2, 2021, and will be updated when the 2021 Audit and Actuarial evaluation are completed.