|
2026 Newsletter
January and February
Our 2026 newsletters will focus on a couple of the licks our fund has taken since 2011 (where the PAG was originally imagined, my first term as a CTPF trustee) and how we believe it can be repaired.
As we begin the fourth year as the Pension Advocacy Group (PAG), I am proudly continuing the enhanced version of CTPF’s ambassador program originally established during Trustee Raymond Wohl’s tenure (2011-2017). Its original intent.
The funding ratio is a critical measure, so I want to clarify its meaning.
CTPF’s funding ratio is calculated as the ratio of two numbers: the top number represents the amount of money we currently have, while the bottom number indicates how much money we need to pay our beneficiaries throughout their lifetimes. If we had all the necessary funds, this ratio would equal 1, or 100%.
Currently, our funding ratio stands at 47.9/100, or 47.9%. This indicates that we are short 52% of the funds needed to support our beneficiaries from when they are eligible to receive their guaranteed deferred income and collect their benefit to the entirety of their lifespans. This ratio is low and has not been decreasing at an alarming rate since 2011. Many factors suggest this ratio should show signs of growth after we restored the income flow through the tax levy and state normal cost.
To tackle this issue, we need to determine the root causes of the lag or shortfall. We can use the equation \(C + I = B + E\) as a starting point to identify which variable might be contributing to the problem. Our objective is to build trust among our members, trustees, and other fiduciaries by sharing complete and accurate data. This transparency can foster collaboration, allowing us to find effective solutions and strengthen our Fund.
During the February investment meeting, we reviewed the fund's performance for the third quarter of 2025, with a particular focus on private equity. At the beginning of the meeting, Trustee Price-Ward announced that the fund had reached a significant milestone, with its assets totaling $14.1 billion. However, it's important to consider this amount in the context of our assets continuing to grow. PAG Public Participation reminded the trustees that our funding ratio is a crucial metric. As of June 30, 2011(my first term as a CTPF Trustee), CTPF's funding ratio was 59.9%, but today it is approximately 47.8%. I also said, “We recognize that we are owed money. I have been taught that the trustees must be diligent in their responsibilities, which include ensuring the collection of funds due the plan. It’s time to collect the TIF funds that are owed to us and address the unfunded liability.”
The second meeting, held after the investment meeting, was called "First Look," and featured presentations from two infrastructure managers: Aberdeen Investments and I Squared Global Infrastructure. First Look meetings, previously known as the First Friday meetings, provide an excellent opportunity to gain insights into the defined benefit industry. I encourage you to take the initiative to learn more.
Sincerley,
Tina Padilla
What was said verbatim can be found at:
https://vimeo.com/1155154155?&login=true#_=_
[Begin 2:55]
“Good morning, Board of Trustees and all who are participating in today’s meeting,
My Name is Tina Padilla, founder and representative of the Pension Advocacy Group
(PAG). As we enter our 4th year, we reflect, or should I say, we’re counting our licks in
2026, and we’re in repair mode.
We believe that the first point to emphasize in every meeting is our funding ratio, which
directly indicates the health of our fund. Historically, Chicago Public School teachers
exemplify the trade-off between salaries and protecting our pensions.
Implementing a travel ban is a necessary and significant step, demonstrating that our
trustees are committed to safeguarding the gold standard of retirement savings for
educators. Travel has been associated with misconduct and financial abuse by CTPF
trustees and staff, particularly when we consider the financial sacrifices teachers make
daily to preserve their hard-earned deferred income, along with the sacrifices made by
those who came before us. This is a perfect time to create better training to improve our funding ratio.
That travel budget can be used to start a CTPF Health Savings Account,
and we could put it in an index fund and see how that works for us.
Secondly, the word MUST in the Lookback Policy is essential. It is mandatory that our
employees be reported as either licensed or not. This requirement helps reduce potential losses and addresses our ongoing issues with misinformation, which can result
in overpayments or underpayments for future benefits.
Lastly, I was unable to find these policies, therefore, let this serve as my Freedom of
Information request for the full CTPF conflict of interest policy and the fiduciary
insurance policy.
Thank you for your time and service.
Have a great meeting.”
As of the February CTPF meetings, I have not received the FOIA documents requested.
https://ctpf.community.diligentoneplatform.com/Portal/MeetingInformation.aspx?Org=Cal&Id=336
https://vimeo.com/1162592890?share=copy&fl=sv&fe=ci
| 
