Transcription
Business Continuity UpdateTown Hall WebinarMay 27, 2020
Today’s PresenterCharles A. BurbridgeCTPF Executive DirectorTown Hall WebinarMay 27, 2020TOWN HALL WEBINA 2
Business Continuity Update Town HallCurrent State of OperationsFinance and Investment UpdateMember ActionsBusiness Continuity Town Hall 3
Town Hall Webinar, May 27, 2020Current Stateof Operations
CTPF TodayServes Chicago’s public/charterschool teachers, administrators,certified personnel and CTPF staffOne of 646 publicpensions in IllinoisOldest in Illinois (1895)Membership includes morethan 87,000 rsCTPF is governed by an independent 12-member Board of Trustees with10 elected members and 2 CPS appointees.5
Coronavirus ChangesCOVID-19 represents a crisis for nearly every organization andevery industry. CTPF immediately prioritized the health andwell-being of members, staff, continuation of businessoperations, and protecting the economic well-being ofmembers, pensioners, and beneficiaries and is successfullyserving members remotely CTPF’s Leadership team meets frequently to ensurecontinuity in operations. All employees operate remotely The CTPF Board of Trustees continues to conduct thebusiness of the Fund transparently using Zoomtechnology, holding online meetings.Business Continuity Town Hall 6
Coronavirus ChangesCTPF OFFICE CLOSED TO VISITORSDue to the Covid-19 Pandemic, we are not accepting visitors at CTPF. Ifyou have a question or issue:Call Member Services with questions. Leave a message at312-641-4464 and your call will be returned as soon aspossible. All calls will be forwarded to voicemail and MemberServices will return calls as soon as possible. Video counselingappointments can also be scheduled.Please state your name and the nature of your call clearly atthe beginning, so that we may answer as quickly as possible.Email Member Services at memberservices@ctpf.org and yourmessage will be returned.Business Continuity Town Hall 7
Coronavirus ChangesWe have procedures in place to ensure thepayment of member benefits, even if normalbusiness is interrupted.CTPF pensions are secure and are based on aformula, not market conditions.FORM425We strongly encourage our pensioners to usedirect deposit.Business Continuity Town Hall 8
Coronavirus ChangesSend Documents ElectronicallyIf you are submitting any documents to CTPF -- yourretirement application, change of address, direct deposit orother form, the best way to send documents is byfax 312.641.7185 or email a .pdf to imaging@ctpf.org.While we continue to receive incoming mail from the USPS,access is delayed.Remote Notary Service AvailableCall Member Services 312-641-4464 and leave a messagerequesting this service.Business Continuity Town Hall 9
Town Hall Webinar, May 27, 2020Finances andFunding Overview
Finances and Funding OverviewEstablished in 1895, the Chicago Teachers’ Pension Fund hasprovided secure and stable retirements for teachers,administrators, and public school personnel, and has served as aneconomic engine for the City of Chicago and the State of Illinoisfor nearly 125 years.As of June 30, 2019: CTPF’s value of net assets was 11.0 billion. The actuarial valuation is calculated annually and was 47.5%. CTPF paid members 1.5 billion in service retirement,disability, refunds, and survivor benefits.Business Continuity Town Hall 11
Finances and Funding OverviewRemembering the Mistakes of the Past Recent legislation corrected long-standing funding shortfallswhich contributed to a decline in the funded ratio. Full or partial funding “holidays” from 1996 through 2005and from 2011 to 2013 deprived CTPF of critical revenueand the opportunity to benefit from additional investmentreturns. Lacking stable sources of revenue, CTPF liquidated assetsand relied on investment earnings to pay pensionobligations.Business Continuity Town Hall 12
Finances and Funding Overview2017 legislation helped diversify funding for CTPF. The State of Illinoisnow pays the “normal cost” of teacher pensions (as they do for theother Funds in the state), and a pension tax levy is remitted directlyto CTPF.In addition to revenue from investments, CTPF receives contributionsfrom four major sources: the State of Illinois, a tax levy, CPS, andemployees. CTPF received approximately 999.1 million in revenue in2019: 442.8 million in property tax receipts 238.9 million from the State of Illinois 190.5 million from employeecontributions 126.9 million from the ChicagoBoard of Education (CPS)EmployeesEmployerState of Illinois Property TaxBusiness Continuity Town Hall 13
Finances and Funding OverviewMarket Volatility The stock market has continued to experience volatilityrelated to the outbreak. CTPF is a long-term investor with a portfolio designed toride out short term volatility.Business Continuity Town Hall 14
Finances and Funding OverviewInvestment Return Assumption is 7.0%CTPF Annualized Rate of Return 1985-201935-Year Average Growth Rate 8.54%Percent19852019Business Continuity Town Hall 15
Finances and Funding Overview As long as primary revenue streams continue withoutinterruption, we are well-positioned to follow our disciplinedstrategy and withstand the current situation through the nextfiscal year. We are continuing to invest, and just allocated 40 million tonew minority, women and disability-owned investmentconsultants at our May meeting CTPF’s appropriation from the State of Illinois was includedin the budget passed by the ILGA this past weekend.Business Continuity Town Hall 16
Finances and Funding Overview While this situation with a pandemic was impossible toanticipate, markets have been volatile for some time now, andCTPF has been preparing for a market correction or downturn. We assumed that after a 10-year bull run that the marketwould experience a correction or recession-like environmentin the near term. Beginning December 2019, CTPF’s Investment Staff andInvestment Consultants began working on an Asset LiabilityStudy. The study focused on the lasting impact of a market downturn,not short-term volatility.Business Continuity Town Hall 17
Finances and Funding OverviewThe study examined current assumptions, stress testing themagainst different scenarios and historical events.Extensive analysis underscored the need for a conservative,diversified, long-term investment strategy: Staff and consultants recommend that the current,conservative policy which has held up well over the long-termshould remain in effect. CTPF Trustees remain committed to our disciplined assetallocation policy, investment policy, investment philosophiesand objectives, and will review and consider therecommendations from the Asset Allocation Study at ameeting in the near future.Business Continuity Town Hall 18
Town Hall Webinar, May 27, 2020Member Actions
Celebrating 125 YearsHappy Birthday to CTPF!July 1 we celebrate our 125 years of serving members.We are celebrating by sharing stories and photos of our members andwe encourage you to share your stories at rebrand.ly/CTPF125Business Continuity Town Hall 20
Stay Informed and Connected1. Stay in TouchMake sure you’re registered for monthlyemail updates Follow us on social media Send documents electronicallyFollow Us! @ Chicago Teachers’ Pension Fund2. Keep us Up-to-DateOur information depends on your communication.Make sure you keep the Fund up-to-date with yourpersonal data Current members update through youremployers Retirees update through member services3. Visit www.ctpf.orgFind news and information about the FundBusiness Continuity Town Hall 21
Thank you
Serves Chicago's public/charter school teachers, administrators, certified personnel and CTPF staff. Membership includes more than 87,000 members: 9,926 . Vested terminated . members. CTPF is governed by an independent 12member Board of Trustees with - 10 elected members and 2 CPS appointees.
