The Chicago Teachers Pension Fund Board of Trustees Meeting on August 17, 2023 began with a dramatic speech by the director who has been under fire for being placed on a Do Not Hire List at the Teacher Retirement System (TRS) where he previously worked.
“I notified the Board (and) I appreciate the support statement,” CTPF Director Carlton Lenoir said. “I’m truly sorry for the distraction it caused for our members. I worked tirelessly to protect pensions. I was hired to reset this organization. This has been an unfortunate disruption. I would like to close this chapter and continue the work of our organization.”
The CTPF Board of Trustees put out a joint statement in support of the director despite a finding by the Illinois Inspector General that Lenoir had forwarded emails with members social security numbers and documents containing money manager information to his CTPF account after he was hired at the Chicago Teachers Pension Fund. He acknowledged this and agreed to delete the emails when questioned by TRS. He then told the CTPF Board that he sent out those emails because he wanted to show how overpayments by the pension fund is not a problem. While he has called his detractors at TRS racist and vengeful, he refused to answer any OEIG questions by pleading the Fifth Amendment.
Retired Teachers Trustee Maria J. Rodriguez went on record to say she did not support the CTPF statement of support for Lenoir. She tried to speak in the beginning but was told she could not speak during the opening public participation.
Retired Teachers Association of Chicago (RTAC) President Linda Williams asked the Board Trustees to further investigate the Lenoir TRS Do Not Hire controversy.
“Do not sweep this under the rug,” Williams said during the public participation period at the meeting. “If this matter has been closed, why is there still a Do Not Hire on Mr. Lenoir’s file at TRS?”
Two former trustees also spoke during the public participation - former Teacher Trustee Tina Padilla and former CTPF President Jay Rehak.
Padilla said she represents the Pension Advocacy Group and there are three areas of concern - 1. The need for a detailed report on the Lincoln Yards investment (the Board later decided to not invest). 2. An investigation into the budget with line items missing including communications committee. 3. An unanswered letter Padilla sent to the Trustees about the Pension Fund’s mission and vision to bridge some of the gaps she sees.
Rehak spoke on behalf of the Writers Guild of America strike against the Alliance of Motion Pictures Producers and said his concern is the investments with all these public traded companies (Netflix, Fox, Warner Brothers, Disney, etc.) whose stocks could be affected by the strike.
“There is a national movement afoot by other pension funds to reassess their positions with these companies, and look at the long-term assets and long-term labor arrest,” Rehak said. “Stocks will go down.”
Speakers from the Writer’s Guild of America, including one who taught Rehak’s daughter and a TV writer who worked on Ozark (one of my favorite!), urged the Board to tell the media companies to come to a fair agreement.
“We want to stop the erosion of our careers,” a Hollywood writer said. “The CTU stands with us. There are no new shows this fall. The longer this goes on the financial impact will get worse. They want to break the union until union members start losing their homes. We ask you to urge them to settle the strike for the writers.”
Three Trustees attended the meeting remotely due to medical issues - Retired Teachers Trustee Mary Sharon Reilly, Teacher Trustee Victor Ochoa and Board of Education Trustee Tanya Woods.
A report on Return to Work violations - retired teachers who subbed more days then they were allowed - found three members in violation. Teacher Trustee Jaqueline Price-Ward said there are many retirees who do not know how to apply for the 140 extra days (from 120 days).
Not one Trustee raised a hand when asked who would like to attend an investment conference (it must be election time!). The next CTPF Election in November for 2 Teacher Trustees and 3 Retired Teacher Trustees.
The CTPF Lobbyist James Clayborne then discussed Tier 2 legislation. The former majority leader of the IL State Senate said he is not sure how much the Illinois State Legislators are “engaged” in the topic and he is not sure where the Governor stands on eliminating the unfair Tier 2 pension law that penalizes teachers and all state workers hired after 2011. Teachers and state workers cannot retire until 67 unlike Tier 1 teachers hired before 2011 who can retire at 60.
When I met (as a member of the CTU Tier 2 Committee) with State Rep. Jaime Andrade, he said that they do not have the votes yet to overturn Tier 2. A massive campaign coordinated by all the government employee unions is needed, he told us.
Trustee Price-Ward said she heard that county workers are working on a current bill to change Tier 2 and she asked the CTPF lobbyist what he thought about the proposed legislation.
“It’s a little more attractive for teachers and state employees and I can share my perspective it’s tough when you make sacrifices and your compensation is limited,” he said.
A big problem with Tier 2 is its legal status. Teachers could work up to nine years and not earn any pension or social security, which is against the law. This makes it difficult to attract teachers and other workers because the pension benefits are so inferior. It also does not save the state any money when it comes to paying its overdue pension bills.
Clayborne said the real issue will be funding, echoing CTU President Stacy Davis-Gates who says the Tier 2 problem is about revenue. He said the bill will be negotiated before a compromise is made.
“I want to see everyone in Tier 1 than to see people penalized for coming into the profession late,” Price-Ward said. “It should be fair.”
Clayborne then repeated the corporate media line about how one state worker used all his sick and vacation days to bump up his pension to $120k per year. “When employees do that it really drives the funding in a way that it’s not being paid for.” This line is repeated often by right-wing groups like Illinois Policy Institute who want to eliminate people’s pensions.
Price-Ward then asked why are state lawmakers and judges getting singled out on the Tier 2 question.
“I’ll just say this,” Clayborne said. “They’re looking out for themselves.”
When Mayor Richard Daley issued his first veto to kill a proposed living wage ordinance in Chicago for big-box retail workers, the aldermen who inserted themselves into the wage hikes got to keep their raise, while the workers got nothing.
The lobbyist noted that pensions at only $100k is not as good as 190k for judges. So it “creates a situation (that is) not as attractive to be a judge. I’m not saying you can’t live off $100k, but it’s a significant reduction. They’re having problems finding judges.”
The lobbyist then repeated what Rep. Andrade told us that many Democrats are refusing to take their pensions, perhaps in fear of voter backlash. There are also many legislators not in the Tier 1. Rep Andrade said had he stayed a city worker under former Alderman Dick Mell, he would be in the Tier 1. But when he was elected the State Rep, he had to kiss his Tier 1 pension good bye.
Price-Ward said the Tier 2 is what is preventing teachers from entering the profession. It is also contributing to high turnover.
The lobbyist said he does not think any controversial legislation will be proposed in the upcoming fall session because of elections. However, he does not believe pensions are controversial.
“Thank you very much!” Price-Ward said.
The Executive Director report stated that Board of Trustee meetings are now hybrid (in person and virtual), they have reduced fees among managers, they have new lobbyists, they will collect $242 million in November, the Fund has seen a 8.6 percent return on its investments of $11.9 billion and CTPF sent out 40 birthday cards to its most senior members turning 90 or 100.
Trustee Rodriguez said she has heard from members that they don’t get return calls after the Fund stated they got 9,000 calls. CTPF staff are still working remote but come into the office at least two days each week.
The last discussion was a presentation by the Fund’s attorney that they would like to eliminate five CTPF Committees - policy, personnel, disability, executive and return to work - in order to use their time more efficiently.
Wow, did you try to call them? It's important the school district have this info. to reflect the proper pay level.
Are you aware that ISBe cannot upload documents in their system and update teacher endorsements? Their system was down as of Sept 13th.