CTPF Meeting June 26, 2025

Tier 2, Remodeling & Conferences

CTPF Retired Teacher Trustee Maria J Rodriguez

The Tier 2 Pension Problem was the first question asked during public participation at the June 26, 2025 Chicago Teachers’ Pension Fund (CTPF) Board meeting.

It is a question the Pension Board is doing everything to avoid discussing or fighting against after the CTPF Executive Director Carlton Lenoir said they cannot do anything because they are fiduciaries. (A ridiculous statement by the director of a fund that makes many decisions that are not in the best financial interests of the Fund, such as divesting from oil and gas and continuing to invest in poor performing money managers with political connections.)

Rose Taylor, a Northside College Prep High School math teacher in her third year, asked if there was any legislative progress on the Tier 2 bill in the Legislature. “I know my fellow Tier 2 members would appreciate it,” she said. She said her second concern was the CTPF investment in Palantir, a surveillance company connected to border control and deportations. She also noted that despite the proclamation to divest from fossil fuels, the Fund still holds $24 million in Chevron. “My concerns are balancing fiduciary duties and ethics,” she said, adding that the Fund had previously divested from South Africa and private prisons.

VP Jacquelyn Price Ward, who chaired the meeting in place of President Jeffery Blackwell who is recovering from an accident since February, told Taylor the Pension Board will send her a written response.

The next public speaker was former Teacher Trustee Tina Padilla, who heads the Pension Advocacy Group or PAG. She spoke about how important it is to find an affordable place to live in retirement, which was the idea behind the former CTU owned building for retired teachers at 55 W. Chestnut, in the heart of the Gold Coast, that was built in 1963. However, the CTU sold the building for about $50 million.

“Good intentions without oversight is inviting the predators.” Padilla said. She said CTPF must not invest in affordable housing without looking at all their constituents. She suggested exploring intergenerational housing development whose purpose is to keep families and communities together so they can thrive. She spoke against CTPF remodeling the building that they are housed in. “Frankly, we should have never moved there,” she said. “However, maybe you can use the space at 203 N. LaSalle, or maybe invest in our school communities and go where our members are. Please stop the bad practices of the past and move forward with the wisdom of the past and the innovation of the future.” She asked what happened to the million dollar IT enterprise, and then invited the Trustees to attend the PAG board meeting July 22.

Retired Teacher Trustee Maria J Rodriguez said she was disappointed that it was assumed the Executive Director would receive a two percent raise before the results of his evaluation were completed and sent to the trustees. The item was on the agenda for approval a week before the meeting. She said it was not the raise she was concerned with, but the process.

The FY Budget 2026 Draft for administrative and investment expenses totaled $86.4 million for a 3.7 percent increase over last year’s 2025 budget of $83.3 million. “Staff has worked to cut expenses wherever possible,” the CTPF presenter stated. “The largest increase in budget is for staff health insurance, which reflects significantly increased premiums, (and) increased investment management fees which is offset by decreases in other departments.”

The one board member questioning the budget and expenses was Trustee Rodriguez, who is the only independent trustee on the Chicago Teachers’ Pension Fund Board. All the other retired and current teacher trustees are members of the CORE slate; while the two CPS Board members were named by Mayor Brandon Johnson, a former CTU organizer and CORE member, and a principal trustee who always votes with the CORE Trustees.

Trustee Rodriguez first took aim at the upcoming vote to approve remodeling and adding more office space. “I don’t recall authorizing paying someone $47k to look into building out,” she said. “We currently have the 14th floor for staff and 15th floor for board meetings, and we have several conference rooms … We’re spending a lot of money. It was talked about going out into the schools. I’ve gotten a lot of calls from the members (about this.)”

Director Lenoir first corrected Rodriguez by stating that the Fund did not hire 22 new employees, and that their ‘black and brown’ employees and supervisors are working in cubicles and they need the extra office space by turning the larger offices into multiple offices to create more space. He said their employees are working on a hybrid model, at home and at the office, and if they came everyday they would not have a place to sit. “Our goal was to maximize the current space we have before coming to the board,” Lenoir responded. “Our plan is to maximize all the space and only take up a footprint of what is actually needed.”

Rodriguez then took aim at the $350k budget for conferences. She noted two CTPF leadership staff members went on 15 conference trips each in a two year span and one was out of the office for a total of 62 days to conferences. “I don’t attend conferences, I would love to see the other trustees, members, staff give up that 350,000 for conferences as an act of good faith.”

She was checked by Teacher Trustee Quentin Washington, who regularly defends CTPF decisions.

“I love the spirit of that, but the reality is conferences are not some sit up and vacation moment, conferences are about education. The sun may be bright and the beaches sunny, (but) we’re sitting in classrooms often from 8 in the morning until 5:30 and six o’clock in the evening with some mediocre lunch depending on which conference you are at and the reality is we need that information … I agree we do want to be fiscal and responsible, but we need to be educated and make sound decisions … We can’t nickel and dime everything. We need to invest so we have these amazing returns.”

“All we need is 8 hours of training,” Rodriguez countered. “That’s what I’ve done. Some only went to one or two conferences. I get the training, some people ask questions and some people do not, all they say is aye or present … When it comes to spending money Mr. Washington, I don’t trust anybody. We’re fiduciaries to speak up for all the members. Especially those Tier 2 members, my heart bleeds for them.”

The vote to approve conferences was 7 yes (CPS Trustee Ed O’Bannon, Principal Trustee Pedro Beiza, Blackwell, Price Ward, Vicki Kryzydlo, Tammie Vinson and Washington), 2 abstained (Lois Nelson & Paula Barajas) and 1 no (Rodriguez).

An interesting conversation on workman’s compensation disability payouts was next. I wrote about a former colleague who had to sue the Chicago Public Schools because they refused to acknowledge her injury on the job that has required multiple surgeries and demand she return to work. She hired former powerful Alderman Ed Vrdolyak to fight for the compensation. Trustee Barajas related a similar experience where she was injured on the job in April and “I’m still in a lot of pain.” She hopes someone will approve an MRI for her back, but the CPS doctors are saying, ‘go back to work, go back to work, go back to work.’ “And I’m in a significant amount of pain, I work with small children, I’m on the floor all the time. I could have gone to my own doctor. I could have gotten my shots and been done with it already, but the workmen’s comp people are dragging it out.”

The CTPF said workman's comp (workers’ compensation) is determined on a case by case basis, sometimes it gets dragged out and it’s ‘complicated’. The requirement is one needs an approved settlement. “I can’t imagine anyone trying to game the system because it’s so hard to just get a backshot,” Barajas said.

Trustee Price Ward said she was also injured on the job and she went to her own doctor and he asked if this was a work incident and they contacted workmen’s comp and it was approved. However, she knows there are teachers who are encouraged to go back to work even though they can barely stand and walk. One colleague hobbled to work everyday with tears in her eyes, so there is a barrier to getting approved, Price Ward said. The Trustees voted unanimously to pass the motion Amendments to the Disability Policy.

Barajas said she was ‘really disappointed in the legislature’ concerning the SB1934 Tier 2 Law that was not voted on despite the We Are One Coalition lobbying. “That is the no brainer to help our Tier 2 people,” she said. “I am being recorded. That could have passed that. There was no additional cost to the state to help our brothers and sisters in Tier 2. Can you comment on that?” Director Lenoir said he agreed it was disappointing. There were several meetings with agreement on the language, but when they wanted reciprocal support from the other retirement systems they bailed. He said they had to back down because the other reciprocal systems did not want to support it.

Trustee Rodriguez asked CTPF about the Minnesota teachers recent success changing their Tier 2 Policy, which we reported on (the drastic penalties to retire early were reduced). The CTPF staffer said he was not aware of Tier 2 changes in MN because they don’t work in MN. Lenoir added that there are various levels of Tier 2 outside IL and another level of benefits, noting there are some systems that have up to 14 tiers. He mentioned the Police and Fire decreased their years of service for calculation and reduced the age.

Director Lenoir made his State of the Fund report with highlights of the 2024-25 strategic plan. “This year we’re on track for another high performing year. We completed all of our goals in 2024.” He said the Fund has prioritized lowering investment fees, and they had private equity education seminars. He also mentioned passing legislation to reduce draconian penalties on retirees who sub beyond the limit.

The Trustees later voted to move to the 30th floor and remodel the 14th and 15th floors as a better option of 5,000 rentable square feet. They may need to purchase additional furniture. Their current lease on offices runs to 2034, and they will continue to negotiate with the landlord not to exceed 27$ per square foot to add the 30th floor with a lease also until 2034. They surveyed other pension funds on what they’re paying per sq foot, and they currently pay $24/sq feet 14 and 15th floors. The motion to authorize the Executive Director to negotiate a lease expansion of 5,062 rentable sq feet at rate not exceeding $27 per sq feet was passed by a vote 10 -1.

Can you guess who voted no? That’s right, Trustee Rodriguez!

The second part of our report on the CTPF Board meeting will focus on the vote to increase retiree healthcare costs.