CHICAGO (May 6, 2015) – Public school teachers in the city are supposed to save 9 percent of each paycheck in their own retirement account. But for 34 years taxpayers have picked up most of the tab, thanks to a perk in the contract with the Chicago Teachers Union.
In the latest round of contract negotiations, Chicago Public Schools officials reportedly sought to end that practice. Union officials stated they were “highly insulted” by the proposal, deeming it unreasonable because “CPS agreed in 1981 to pay for 7 percent of the 9 percent of each CTU member’s pension contribution in lieu of a raise the board said it couldn’t afford at that time.”
The Illinois Policy Institute reviewed public records, and found the following:
- Only about 300 employees out of the 30,000-plus employed today by CPS worked for the district back in 1981.
- Taxpayers will spend more than $174 million this fiscal year alone on pension payments that should be made by teachers and other CPS employees.
“It’s not out of line to ask employees to save for their own retirement. That’s a simple standard across almost all industries, public and private,” said Ben VanMetre, director of pension reform at the nonpartisan Illinois Policy Institute. “Pension benefits for CPS employees already are generous; employees can retire as early as age 55 with only 20 years of service. CPS is on the brink of financial collapse, and 99 percent of the people who supposedly forwent a raise don’t even work for the district anymore. CPS is right to try and end this expensive perk.”
Ben VanMetre is available for interviews, and has written about this in more detail here: https://www.illinoispolicy.
MEDIA CONTACT: Nathaniel Hamilton or Diana Rickert (312) 607-4977