CTPF Trustees Vote to Cut Healthcare Subsidy

Chicago teacher pension woes continue.

New members were hit with the Tier 2 Law that passed in 2011 so that they cannot retire until the age of 67.

Now CTPF wants to reduce the CTPF’s health insurance for CTPF retired teachers with higher co-payments for prescription drugs.

The Democrats have been particularly cruel when it comes to pensions by refusing to take action on changes to fix the Tier 2 Law and provide sustainable health insurance subsidies for the retirees.

The debate to increase co-payments for drugs was hot and heavy in the last June 26, 2025 Chicago Teachers’ Pension Fund (CTPF) Board meeting.

The CTPF made a presentation on the prescription drug plan changes.

“We’re trying to increase the health plan subsidies to retirees, members have comprehensive insurance with high satisfaction, but we need more funding to keep things as they are. We constantly go to RFP (Request for Proposal) and negotiate prices … We try to keep savings, but we’re up against health insurance costs that are rising, especially prescription drugs.”

CTPF said health insurance costs have gradually increased from $64 million in 2024 to $70 million today, but they’re only allocated $65 million. In 2029 there will be only $22 million in reserves with over $90 million projected costs, which is “not where you want to be.”

You’ve been at $65 million for years, but there is no way to continue to sustain that without fund increases as costs for drugs and healthcare go up. Eventually the Fund will run out of money.

“You’ve been at $65 million for years, but there is no way to continue to sustain that without fund increases as costs for drugs and healthcare go up,” the CTPF staff person said. “Eventually the Fund will run out of money.”

CTPF said Medicare costs increased 8 percent in 2023, 4% in 2024, and 13% in 2025. (It should be noted that our union brothers and sisters in NY fought successfully to not switch to Medicare Advantage, an attempt to flip healthcare increases onto the retirees.) CTPF said the Federal Government is no longer funding healthcare costs like in the past and prescription drug spending more than tripled, with the increases in diabetes and cancer drugs driving the overall expensive increase. Drugs are 65 percent of medical costs, and CTPF has done a lot to control costs, the rep said. There was an increase from $65 million to $100 million in the current bill to subsidize healthcare costs in the IL House and an out of pocket maximum prescription drug deduction of $2k that will increase to $2100 in 2026.

CTPF said they would save $1.8 million, with an increase in co-pays of $5 for generic drugs and $15 per brand drugs. The current co-pay is $200. “This will show Springfield you’re trying to save.”

Teacher Trustee Vicki Kurzydlo said the problem is sometimes people need to take the brand prescription rather than the cheaper generic version if the doctor recommends it. “Even for myself this amount of money is high and I understand all the reasoning behind it,” she said. “This is a lot.”

Retired Teacher Trustee Maria J. Rodriguez said there should have been a Health Insurance Committee meeting with more discussion. “It's like being between a rock and a hard place.”

The CTPF replied, “We’re trying to be as fair as possible. There’s no alternative. We have to save money. We have to cut costs.”

Trustee Rodriguez asked if they could table this vote to increase the healthcare costs, but CTPF Executive Director Carlton Lenoir said timing was of the essence. Teacher Trustee Tammie Vinson said she agreed with Rodriguez that the members living on fixed incomes with modest COLA increases will not be happy with this.

“To me that’s fair, if you choose brand name subscriptions, if it’s costing the plan then we have to do it somewhere, people getting that brand name drug should be paying more,” Teacher Trustee Quentin Washington said.

He acknowledged that his grandmother and great grandmother could only use brand name drugs like Tylenol otherwise they couldn’t walk because they were too sick.

Trustee Rodriguez asked if they could take the money from anywhere else in the budget, but Director Lenoir said the $65 million is all that is allocated. He said as a fiduciary you can’t take dollars from the Pension Fund to fund health care. However, CTPF in fact took money from another part of the Pension Fund to pay the increased money management fees.

Trustee Kurzydlo then asked about the COLA that retirees receive each year to keep up with inflation.

“I know this is a great deal of money and I’m wondering how we can explain this to retirees; this is increasing along with your COLA increase, not to try to pull the wool over anyone’s eyes, but to make it more palatable,” she said.

“I think it’s a messaging issue,” Trustee Washington said. “Costs nationwide are going up and we are statutory bound and this is what we can do to keep the costs as low as we can. If you don’t like it then come to lobby with us and tell your legislator. Springfield is going to have to act cause we need more money.”

Retired Teacher Rodriguez then poured cold water on the active teacher trustees' focus on messaging versus outrage over forcing some retirees who only make $32k to swallow higher healthcare costs. She asked how many pensioners get brand drugs over generic prescription. CTPF staff members did not provide the information requested. If the motion to increase the co-payments did not pass, the current plan would still be in effect and they would have more time to further study the problem.

The Motion to Recommend CTPF increase co-payments of $5 for generic drugs and $15 for brand name medications to begin in January 2026 passed by a 5-3 vote. The No votes were Teacher Trustees Paula Barajas and Tammie Vinson and Retired Teacher Trustee Maria J. Rodriguez.

It should be noted that Rodriguez was the only retired teacher trustee to vote against this motion to increase healthcare costs on retired teachers. Retired Teacher Trustee Lois Nelson, who attended the earlier part of the meeting and did speak about the healthcare subsidy problem, but was not present in the afternoon. Retired Teacher Trustee and long-time veteran Mary Sharon Reilly who is battling cancer was not present as well.