Making an Impact: CTPF Pension Dollars Support the Illinois Economy
The Chicago Teachers’ Pension Fund (CTPF) released its which details the important impact pensions have on the economy of the State of Illinois and the City of Chicago. CTPF made $1.2 billion in direct payments to annuitants living in Illinois in 2017. Those payments had a $1.8 billion impact on the Illinois economy, supporting 13,723 jobs in the state.
The Buck Stays Here: Understanding the Economic Impact of CTPF Benefit Payments on the State of Illinois and the City of Chicago is produced annually and details the Fund’s impact on the State of Illinois, the City of Chicago, and each Illinois legislative district.
This year’s document also includes information about the collective impact of Illinois’ eight largest public pension funds, detailing the $11.6 billion in direct payments which contribute to $16.9 billion in economic activity, supporting 126,212 jobs in the state.
“A majority of our members stay in Illinois after retirement, spending their pensions in every legislative district. Our members eat at local diners, shop at local retailers, and ultimately put their hard-earned pension dollars back into the state’s economy, driving economic activity and supporting thousands of jobs,” said Charles A. Burbridge, CTPF Executive Director. “CTPF is just one of more than 600 public pension funds in Illinois, and more than nine percent of our adult population belongs to a public fund. When we look at the collective impact of these groups, it’s clear that pension dollars provide a major economic engine in Illinois.”
The report found that 83 percent of the CTPF’s annuitants stay in the State of Illinois, with nearly half of that number continuing to call Chicago home. The annuitants residing in Chicago are responsible for approximately $940 million in total economic impact and support 7,025 jobs across the city.
The study used standard economic multipliers from the U.S. Department of Commerce Bureau of Economic Analysis to assess the economic impact of spending.