Forrest Claypool appears to be a civic-minded person. His career in both elected offices and governmental appointments have been admirable. His experiences as a Cook County commissioner, president of the Chicago Transit Authority, superintendent of the park district and twice mayoral chief of staff certainly indicate that he is considered to be a top-flight administrator. He will need considerable skills to lead the more than 41,000 employees and the almost 400,000 students. I hope that he will consult with his educational staff including local school principals, teachers, students and parents.
In his Perspective piece on Aug. 2, he presents a problem that current Chicago teachers and retirees have been aware of for years. There is a great difference between the two teacher pension funds in the state of Illinois. Chicago taxpayers have been paying taxes for both the Chicago Teachers Pension Fund and the Teachers Retirement System. Suburban and downstate school districts pay nothing toward their teachers pensions once the teacher is retired.
Claypool talks about proposed legislation that will provide some “state help” for Chicago teacher pensions. If he is referring to Senate bill 316, the bill will require the state of Illinois to pick up “normal cost” contributions to for CTPF for fiscal year 2016 and fiscal year 2017, but it will reduce the payment of $536 million due CTPF from the Chicago Board of Education. It would also “kick the can down the road” for an additional four years. This is not a solution to the pension funding problem.
True teacher pension reform must include an end to the inequity in funding that exists between CTPF and TRS. Suburban and downstate districts must assume responsibility for funding of their own teacher pensions. Chicago Public Schools employs 18 percent of the teachers in the state of Illinois but receives less that 1 percent of the teacher pension funding from the state.
Claypool needs to consult with the CTPF trustees and the General Assembly to suggest changes in pension laws that would stabilize CTPF. Claypool’s suggests that Chicago teachers should increase their contribution to their pension. He must realize that the pension pickup has been negotiated in the past and any changes must be negotiated. He should also realize that Chicago is not unique. According to a study in 2013, 48 percent of teacher contracts in the state have some sort of teacher pension pickup.
Claypool must look at the history of CTPF funding. From 1996 to 2005, Chicago Public Schools made no contributions to CTPF and in the period of 2011 to 2013 received “pension holidays” that resulted in a $2.1 billion shortfall for CTPF. Since 1895, CTPF has persisted through the use of script to pay teachers during the Great Depression, payless paydays in the 1980’s and “pension holidays” from 1995 to 2005.
Hopefully, Claypool can use his political skills to join the forces of the Chicago Board of Education, current teachers, retirees and the General Assembly together to make a reform package that will create real equity in the funding of all teacher pensions in Illinois.
Taxpayers in Chicago and the entire state deserve it.
—John Reilly, Chicago
