The First with Faith

On July 22, 2025, we will be celebrating our third anniversary as a nonprofit organization dedicated to advocating for the children, educators, and elders of Chicago. Our mission is to restore and protect the gold standard of retirement savings for public school teachers. My friend Faith and I have collaborated to produce our first podcast, which aims to educate and empower our community in a safe and engaging environment. We hope you enjoy listening!

Save Our Pensions and Fight Back Trumpism!

"Save Our Pensions"

I was just on the call with IFT’s President Montgomery and Executive Vice President Davis Gates. Three callers expressed concern about the possibility of converting our defined benefit pension plan into a defined contribution plan or a 401(k)-style plan. President Montgomery confidently stated that he is committed to defending defined benefit plans. He then asked Stacy Davis Gates whether the Chicago Teachers' Pension Fund (CTPF) had any provisions that would allow participants to opt out, but we were unable to hear her response.

This much I know: The Retired Teachers Association of Chicago.  Since 1926 this Association has dedicated itself to the betterment of all teachers who have retired from the Chicago Public Schools has this on their website. You can go to their website for the details. 

Defined Benefits vs. Defined Contributions
Currently we have a defined benefit retirement plan where we are guaranteed our benefits for life.  If some legislators get their way, new employees will work under a defined contributions retirement plan where the benefits are based entirely on how much was contributed.
Read an analysis of Public Pensions by the Center for Tax and Budget Accountability -- here.
If you would like to see how much you would have needed to contribute to a retirement fund to enjoy your current pension, click here and enter some data.  Be aware that the projected total you have in your account when you retire must last for life - i.e. if your retirement account has $1,000,000 in it when you retire and you expect to live another 20 years, you can only withdraw $50,000 per year and the balance will continue to decrease until your account is completely depleted and you have nothing left to live on.

  https://www.rtac.org/home.htm

I also have this email from our Executive Director in response to my public participation request, where I asked our trustees to help us repeal Tier 2.

Executive Director <executivedirector@ctpf.org>	Mar 7, 2025, 1:27 PM
to Tina, me

Dear Tina, 

Thank you for your participation in the March 4, Investment Committee First Look meeting. We appreciate your support for our Tier 2 members.  

As a former Trustee, you know that CTPF Trustees cannot legally advocate for benefit enhancements. While they may personally support this position, CTPF as an organization is charged with administering Illinois law and cannot lobby for or propose legislation eliminating Tier 2. 

I encourage you to work with our stakeholder groups who can advocate for this legislation. You will find support and ways to amplify your efforts together. 

Sincerely,

 

Carlton

We must help save our pension. These politicians out here should be called magicians. They are so deceptive. This Tier 2 bill they are asking us to call the governor and ask him to sign into law, is a scam.
listening reminded me of a Bible story I learned in religious classes as a child. 

There were two men in a certain town, one rich and the other poor. The rich man had a very large number of sheep and cattle, but the poor man had nothing except one little ewe Lamp he had bought. He raised it and he grew up with him and his children. He shared his food, drank from his cup and even slept with him in his arms. It was like his daughter The rich man refrain from taking one of his own sheep or cattle to prepare a meal for some travelers who came to visit him. Instead, he took the ewe lamb that belong to the poor man and prepared it for the one who came to visit the rich man. 

Do you see the metaphor I see? I see what’s happening with our pension and retirement funds as a theft of our defined benefit pension—something that we, along with our teachers and their predecessors, have worked hard for and made real sacrifices to secure. This city and state have so many wealthy individuals who possess vast amounts of money; however, they don't want to use their own resources. Instead, they prefer to utilize ours, leaving us with very little or no money for retirement. This is my concern. Could you please help restore the Gold Standard of Retirement saving for curent and future Chicago Public School Teachers as well as the Defined benefit Plan for all? Write to our union leaders, CTPF  Trustees, legislators and Governor and ask them to push for the Repeal Tier 2. This is not only the right thing to do, but it is also a way to fight back against Trumpism.

Peace, Love and Justice 

Tina Padilla 

Call To Action: Repeal Tier 2

 

Hello Pension Warriors,

I don’t see any CTU leadership election Forum on the CTU calendar or the Lobby Days. Here are the questions you might want to use for the CTU leadership at HOD on April 30, 2025.

Misleading statements often used by those opposed to our pension include, “CTPF administers benefits, but only the state legislature has the power to change Tier 2 law.”

The trustees of the Chicago Teachers' Pension Fund (CTPF), as fiduciaries, play a crucial role in governing the fund. CTPF has a Pension Law and Administrative Rules Committee that initiates legislative changes affecting fund benefits and operations. This fiduciary duty requires them to act with the highest standards of ethics and morality to preserve the fund’s fiscal integrity and financial stability.

Given this, why hasn’t the Chicago Teachers Union (CTU) leadership collaborated with our trustees to exercise their fiduciary power and initiate legislative changes to repeal Tier 2?

Previously, the CTU Tier 2 committee supported legislation such as HB4098, which included provisions that further reduced the funding ratio. The courts have already established that our pensions must not be diminished or impaired.

Can the CTU committee come up with a resolution to repeal tier 2?

When will CTU start educating its members about a defined benefit plan and how to restore it?

Why wasn’t there language to repeal the Tier 2 Pension in the TA?

When will we have a full 12-member board of trustees? We currently have only 10 members; the two missing appointments are from CPS.

 I recognize that for any new law to be successful, it must be workable, fair, and clear. Unfortunately, this was not the case when the leaders of that time chose to divert our deferred wages, specifically from our defined benefits pension plan, for their purposes. While this decision is widely known, it is also deeply deceptive. Who can truly label diverting retirement savings as a “holiday”? Would legislators and all stakeholders consent to the beginning of the dismantling of our pension statute if they had accurate and reliable information? Would this legislation have passed if those behind the scheme had to rely on the approval of the people whose retirement savings they intended to use to finance their political projects?

We need to stop focusing solely on costs and begin by repealing Tier 2, fully restoring the original statute, and rebuilding the pension from the inside out. This issue transcends mere numbers; misleading terminology has confused many. Our lawmakers, along with everyone who supported that law, recognize that it did not comply with the fundamental safe harbor rule. Furthermore, they understand the negative impact it has had on recruiting and retaining educators, as well as the overall sustainability of great public education.

I’m also including Julie's overview and the article.

https://docs.google.com/document/d/1ZQ7FFoEvoOd4cW1Fo8lKiRwh_2XnRpyVzDd7yz4t4pE/edit?tab=t.0

https://blockclubchicago.org/2025/04/08/illinois-teachers-unions-are-pushing-changes-to-the-states-pension-system-this-spring/

      2. The Tier 2 Fact Sheet

     3. A form letter and Governor Pritzker’s voice on an opinion site. 

 https://gov.illinois.gov/contact-us/voice-an-opinion.htmlfbclid=IwY2xjawJz1B5leHRuA2FlbQIxMABicmlkETFmY0NNQkNBMWlqZlhvT3Z0AR6d9e1jTThg_2QXXNKpJitcSt4IpbjuuwnwKi-yaSmbWOJ0xKROtorSU8DO5Q_aem_9rGaaJ8dEd0eWLCUtPSz7Q

I hope this information proves helpful. Please express our gratitude to the governor for his efforts in protecting defined benefit plans. 

Thank you,

Tina Padilla

The CTPF April 15, 2025 Investment Meeting Preview

 

 To listen, click  Audio 

Hello Tina Padilla, here, bringing you The April 15, 2025 Investment Meeting Preview

#5 on the agenda is the 4^th quarter of 2024 fund performance report.

1. Fund Value: The Fund was worth $12.7 billion at the end of the fourth quarter, which is $406.8 million less than it was at the end of September 2024.
2. Reasons for Change: The decrease in value was due to:
• Investment losses: The Fund lost $131.9 million from its investments.
• Cash outflows: $274.9 million was taken out of the Fund.
3. Asset Allocation: The Fund's investments were mostly within the allowed ranges, except for international stocks and bonds.
4. Market Performance: During the fourth quarter:
• U.S. markets went up.
• International markets went down.
5. Fund Performance:
• The Fund had a return of -1.02% before fees and -1.13% after fees.
• It did better than its Policy Target by 107 basis points (1.07%).
• It ranked in the 46th percentile compared to similar funds.
6. Long-Term Performance: Over five, seven, and ten years, the Fund has performed better than its Policy Target and is above the median of its peer group.

 

#6 of the agenda, Due diligence presentation from Newport Partners.  The reason that they are coming in for due is because our Consultants and fund investment staff are recommending that we continue to invest with this manager. #7 Recommendations to re-up with Newport Partners.

Commit $25 million to Newport Capital Fund IV in addition to $3 million as Special GP

Continuation of Newport Capital Fund III and Newport Capital Fund II strategies, which have performed well for CTPF– Performance as of September 30, 2024:

Fund II Net IRR 6.9% Net Equity Multiple 1.53x

Fund III Net IRR 9.4% Net Equity Multiple 1.10x (still in investment period)

 Adds vintage year diversification

Provides diversified exposure to necessity and grocery-anchored retail which is a segment of the real estate market that has performed well relative to other property types.

 Participating as a Special GP provides a fee benefit to CTPF as Special GP’s receive GP carried interest, but do not pay investment management fees on the GP commitment.  Assuming that Newport achieves a 15% gross IRR for the Fund over its life, the net return to CTPF would be 14.7% including Special GP carried interest and fee savings as opposed to 12.8% if CTPF did not participate as a Special GP.

After the investment meeting, there is a First Look meeting where trustees, staff, and consultants review presentations from minority managers. Hope this was helpful. Get involved and defend the Gold Standard, the Defined Benefit Retirement our Chicago Teachers’ Pension Fund.

Know what the Gold Standard of retirement savings is called, and don't be scamed again.

 

Dear Friends of The Defined Benefit Plan,

Misinformation like what I read today motivates my actions.

https://www.investopedia.com/this-florida-town-is-top-ranked-for-retirees-11693868?hid=7384e07948e16fedfa221ddb8a97ac3942a4787b&did=17124830-20250401&utm_campaign=investopedia-daily_newsletter&utm_source=investopedia&utm_medium=email&utm_content=040125&lctg=7384e07948e16fedfa221ddb8a97ac3942a4787b&lr_input=fa63812332ddf0517412b8def7e4e5af2799024ba2d53a45005d8a9b896cbc9f&utm_term=midday

A Defined Benefit is, according to Investopedia:

https://www.investopedia.com/ask/answers/032415/how-does-defined-benefit-pension-plan-differ-defined-contribution-plan.asp

Let’s advocate for our right to the 130-year-old Defined Benefit Plan of the Chicago Teachers’ Pension Fund. I would appreciate it if you could share this with your readers. Tina Padilla (PAG oversight representative)

 

Watson Lake Signpost Forest, Yukon, Canada

 

Picture: Tina and her dog Yami,

Unimaginable joy washed over me as I found myself in the breathtaking Yukon, reveling in the thrill of adventure after a long day of driving. My partner steered the vehicle to the side of the road, and as I gazed upward, my eyes widened in awe at the iconic Watson Lake Signpost Forest before me. The sight was nothing short of surreal—I felt like I had stepped into an Alice in Wonderland scene. "I’ve been here before; how did I end up here?" I wondered aloud, grappling with the whimsical sense of déjà vu.

It felt like I was dropped into the location of an intriguing story from the Farmer’s Almanac box calendar, which dedicated a feature to the fascinating Sign Post Forest. While I couldn’t recall the exact date of the story about Private Carl K. Lindley, I distinctly remembered how it captured my middle school students' imaginations that year. The narrative spoke of a U.S. private serving with the 341st Engineers, tasked with making repairs to a sign along the rugged Alaska-Canadian Highway. In a delightful display of creativity, he decided to personalize his contribution by erecting a sign that pointed toward his hometown, Danville, Illinois, along with the distance to that cherished place. I fondly remember sharing this captivating box calendar with my students in either 2021 or 2022, igniting their curiosity, sense of adventure, and love of learning all things including math.

I believe the tear-off was likely from the 2021 box calendar, I retired from CPS in December 2022 and, drove to Alaska summer of 2023. After returning from my trip, I attempted to locate the actual tear-off. I had repurposed these tear-off calendars as notepads. When I flipped through them, however, I couldn’t find it. Maya Angelou said, “There is no greater agony than bearing an untold story inside you.” I know this agony. I also feel that stories must be told. If we don’t they die and somehow it feels like we lose who we are and why we are here. I left my vibrant green platform shoes behind, along with a personalized memento, a staggering 2,506 miles away from the familiar streets of Chicago. In doing so, I shed not just my footwear but also the fear that my inability to continue serving as a Trustee for the Chicago Teachers’ pension fund would impede the important work that had already begun. This moment marked the beginning of my quest to restore the “Defined Benefit Plan,” a vital safeguard for teachers’ futures.

My unwavering commitment to holding our elected officials and other fiduciaries accountable is at the forefront of my mission. If one individual can spark success in this Forest, we can work together to restore the gold standard of retirement savings for everyone, one pension fund at a time. The journey ahead is daunting, but the vision of a secure retirement for all teachers fuels my determination.

In today’s data-driven environment, employers often require employees to utilize their designated network drives for various purposes, such as ensuring data security, improving collaboration, and facilitating access to important documents. Understanding the importance of adhering to these guidelines, I diligently followed the directive and stored all my work-related files on the CPS network. While this decision could be beneficial, it also has its drawbacks. The memories and relationships we build throughout our careers with co-workers and students are incredibly special and priceless. However, we often leave behind intellectual property that can be monetized, and we need to consider how we are being compensated for it and how we can protect it. 

To effectively repeal the unjust Tier 2 law, we, the participants in this initiative, must hold our fiduciaries accountable. We can no longer rely on the status quo. It is essential that we leverage our collective intellectual talent, along with that of the staff, to identify ways to improve our funding ratio, which, as of the last update, was just over 46%. How is this acceptable?

Let’s personalize our work, explore innovative revenue streams, and balance the pension actuarial equation by thoroughly examining our expenses. What is our expense ratio?

Where is the money?

What happened to the $41 million that a former employee brought to the attention of our internal auditor?

Where are our Pre-Paid Pensions, which have not yet been disbursed? The amount owed to CTPF stands at approximately $13.9 billion.

Most importantly, how are we collaborating on legislation that addresses the mistakes of the past and works toward repealing Tier 2?

 Respectfully,

Tina Padilla

 

                                                                   

What is a Fiduciary?

Pension Advocacy Group decided this was a perfect time to start the educational series. The objective is to develop members' knowledge of Defined Benefit Plans and how to protect and restore them.

 Lesson 1: What is a fiduciary?  In the simplest of terms, a fiduciary is someone who must put the best interest of the person they are representing ahead of their own.

Election materials will be mailed and online voting becomes available for the 2024 Teacher Trustee Election. Voting closes on November 1, 2024, at 5:00 p.m. (CT). 

Chicago Teachers' Pension (CTPF) members will have the opportunity to select two from a field of five.

PAG’s strategy to educate, engage, and empower members was met with a bumpy start when the conversation took an unfortunate turn when the meeting was hacked. PAG addressed the situation to the best of their ability and after resuming the Zoom meeting continued with the agenda. Thank you to our PAG nonprofit consultant Lili Molina a board member for helping us with the other imposters.   

 During the virtual meeting on Friday, October 11, 2024. Maria Blancas, PAG's Production Director introduced the panelist. Ray Wohl is a former CTPF Trustee and president of the PAG board.  Julie McShane is the legislation Director and an active CPS teacher. Dawn McGrath, a former CPS teacher is the Business Director.  Panelists introduced themselves and shared how they defined or understood the role of a fiduciary.  Tina Padilla was able to obtain the visitor link to the CTU candidates forum used her knowledge of a fiduciary and created a rubric to score all the candidates and shared her scores.  

 Next on the agenda was the discussion around Pension legislation. PAG is engaging in initiatives aimed at repealing Tier 2 such as  AFL-CIO Fix Tier 2, Undo Tier 2 Illinois Education Association, and IFT Fix Tier 2. Dawn McGrath lead the discussion on how to support all trustees, especially our woman trustees. 

 Several candidates joined the meeting but left before the candidate Q&A portion began.  Lucky for us, Trustee Washington joined at the right time and reflected on his 3 years on the board. We were also able to use the last few minutes to discuss HB 4098 and how we believe this bill might impact the fund. 

 We trust that good intentions yield good practice and can drastically reduce or eliminate harm. My scored rubric of the candidates and notes from my retiree delegate George Milkowski are attached. 

Learn more at ctpf.org/election-central.  

 file:///C:/Users/tpadilla/Downloads/HoD-2024%20-10-08%20(1).pdf