CHICAGO TEACHERS’ PENSION FUND GOES FIVE YEARS WITH NO GROWTH
By Jonathan Ingram -
The Chicago Teachers’ Pension Fund, or CTPF, lost money last year.
Although pension trustees predicted the fund would earn $778 million in fiscal year 2012, the fund actually lost more than $38 million. The system posted an investment return of -0.4 percent, far below the 8 percent expected. That brings the five-year average return to exactly 0 percent.
Unfortunately, when investment returns come in under projections it falls on taxpayers to make up the shortfall. The more than $800 million of missing investment income will be added to the unfunded liability, and Chicago taxpayers will be paying more and more money during the next 30 years to make up for the poor returns.
Next year’s employer contribution to the CTPF will nearly triple. The required contribution for fiscal year 2014 will rise to $625 million, up from $219 million required in fiscal year 2013.
The simple fact is that the pension fund for Chicago teachers is broke. It doesn’t even have enough money on hand to pay out benefits to teachers who have already retired, let alone those still in the classroom.
The longer lawmakers delay action, the worse this pension debt crisis will become. Only major reforms, like moving to defined contribution plans for all future work and tackling the automatic, compounded cost-of-living adjustment, can get the problem under control.
Can you tell me who is responsible for shoveling the sidewalk on Artesian from 115th street south to 119th Street, but stopping at the alley just beforemy house on the corner? The young man in the Alderman's office has no clue. BAPA says call the Alderman's office. I don't mind paying; I just want to be included.
ReplyDeleteThe longer lawmakers delay action, the worse this pension debt crisis will become. Only major reforms, like moving to defined contribution plans for all future work and tackling the automatic, compounded cost-of-living adjustment, can get the problem under control.
ReplyDeleteRAISE INTEREST RATES NOW THIS WASN'T A PROBLEM IN THE 80s!!
I think it is all the social investing. No sugary drinks, guns, beef, fur companies, drug companies, chinese clothes manufacturers, anti-labor, pro-labor, anti-gay, chauvenist,carbon producing, catholic, lutheran, baptist, financial services, mortgage companies that they don't have the testosterone or estrogen to invest in that have made money but that they abhor for their success so they won't invest in is probably a factor. Probably a lot of Beverly residents are on their board.
ReplyDeleteWell said! It's a shame you are illiterate.
DeleteI think some people stop and type at this blog after drinking at Cork & Kerry.
ReplyDeleteSociety says, why support a pension plan of a union led by avowed Marxists (Sharkey etc.) Why should the public support an organization that produces a flawed product.
ReplyDeleteTheir performance parallels the performance of Obama and our national economy. No growth, no jobs, no hope.
ReplyDeleteIt is 9 am somewhere but science shows that most alcoholics have fairly high IQs. They probably drink the way they do because they are trying to forget all the idiot democrats with whom they are forced to associate, especially in Illinois. The 19th ward is loaded with alcoholics, almost one for every democrat.
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