March 9, 2020, Market Volatility Update
CTPF Pensions are Secure
The Novel Coronavirus, now known as COVID-19 poses health risks but is also an economic threat. The stock market has continued to experience volatility related to the outbreak.
With the current volatility in the financial markets, members may be concerned about the security of their pension. 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.
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. While market volatility may be upsetting, it’s important to recognize that CTPF invests prudently in a diversified portfolio designed to weather market volatility over the long term.
The current volatility in the markets does not have an immediate impact on CTPF’s funded status. 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. Click here for the current actuarial report.
We are closely monitoring developments and implications with regard to our investments during this uncertain time. We will continue to update members via all of our communication modalities.