Teachers’ Pension Trustees Conferencing on the Sunny Shores of Key West

The Chicago Teachers’ Pension Fund is one of the worst funded public pension funds in the country, but that doesn’t stop its trustees from going to conferences in Key West.

Second City Teachers has documented the trips Pension Trustees take in which they fly all around the country to exotic locales in San Francisco, New Orleans or LA, spending lavishly on fine dining and airfare while public pension woes continue to mount.

Retired Teacher Trustee Mary Sharon Reilly questioned at a CTPF Board meeting last year why trustees would even have to fly across the country to attend a seminar when they can sign up for conferences here in their hometown or even virtually, thus eliminating the costs.

Public pension experts say these trips are more of a way for money managers to schmooze with trustees so their funds will continue to invest with them. They also serve as an incentive for trustees to serve on the board and represent their master’s bidding.

The CTPF Trustees did a sneak run this year when unbeknownst to me, a few of them headed to Key West, Florida for an investment seminar. They are supposed to discuss getting approval for traveling to far away destinations from their fellow trustees. However, I did not hear them discuss this year’s trip until I came across a document that highlighted it.

CTPF Principal Trustee Pedro Beiza

Principal Trustee Pedro Beiza, who never speaks during Board meetings, spent a whopping $1,390.50 for hotels on a four day stay in Key West from Jan. 21 - Jan. 25, 2025, which was listed in a CTPF Administrative Expenses report. The last couple of years he has asked to attend board meetings virtually because of his job as a principal. So why would a principal leave his building for a whole week to attend pension lectures he appears to have little interest in? Perhaps margaritas, palm trees and white beaches made him a believer.

CTPF Director Carlton Lenoir and Chief of Investments Fernando Vinzons joined Beiza in the sunny Florida resort area known more for its golden beaches than investment trend seminars.

CTPF President Jeffery Blackwell spent $1300.50 for his four day stay in Key West, while his co-hort and Vice President Jacquelyn Price Ward spent the same as Pedro on her stay in Key West, $1390.50.

Airfare did not come cheap for our pension trustees. Director Carlton Lenoir, who just negotiated a new five year contract, had two flight reimbursements of $993.88 and $1042.34, and VP Price Ward had two airfare costs of $1049.32 and $749.65. These tickets were all listed for the Key West Conference dated 1/21/25 - 1/25/25.

Both Blackwell and Price-Ward are running for reelection in November.

The Key West event was entitled The Plan Sponsor Educational Institute which states they bring together Public Pension and Union Trustees who share a common interest in fiduciary responsibilities (sic!). More revealing are the sponsors of this event - the big private equity firms such as Loop Capital, Carlyle, and Attucks.

I sent an email to CTPF Director of Communications Michelle Holleman asking why I didn’t hear about this particular trip discussed at a board meeting. She sent me a standard legal reply citing Illinois Law and CTPF Bylaws that require Trustees to participate in ethics/fiduciary [sic!] training of at least 8 hours per year. Fund Bylaws state Trustees can attend three educational seminars per fiscal year to meet the requirement, but board approval is required if a Trustee wishes to attend more than three pre-approved seminars in one year.

So I asked Holleman if the policy has changed about board approval for these exotic trips. She responded in the email that the last change to the Travel and Expense Policy occurred in December of 2023. That change clarified that the three Trustee educational conferences authorized by the Bylaws do not require additional Board approval.

Hmmm, I wonder if they changed this policy after we started reporting on these trips.