Fall 2015: Actives

ACHERS’ PEN TE SIO O N G F A U C I N H D C TH Fall 2015 for Active Members Chicago Teachers’ Pension Fund NNIVERSARY A CHERS . . . PREPARING TEA FOR NG FOR THE FUT CARI URE

JULY 1, 2015 JULY 1, 1895 Trust. Integrity. Pension News Stability. Issue Highlights In Memory of Rep. Esther Golar A tribute to a legislator, community activist, and CTPF supporter 3

CTPF News CTPF receives an end of year 2015 Board of Trustees Elections payment from CPS, welcomes Friday, November 6, 2015, CTPF will hold elections to new trustees, hosts the Leadership fill two Teacher Trustee positions on the CTPF Board of Trustees Roundtable, and more 3, 6 New in 2015: All voting will be conducted online Candidate Statements Lois W. Ashford, Jay C. Rehak, and Donna L. Seals have met the qualifications, Information about the candidates in submitted nominating petitions, and have been certified to run for election in the the 2015 Teacher Trustee election 4 2015 Teacher Trustee Election. Teacher Trustees will serve three-year terms from 2015- 2018. Find Teacher Trustee candidate information on page 4, and additional election Online Voting information on the Election Central page at www.ctpf.org. A guide to the online voting process 5 Online Voting The Teacher Trustee Election will be conducted in schools on November 6, 2015, using Legislative Update secure electronic ballots. CTPF successfully demonstrated online voting in 2012-2014, A review of spring and summer and all schools will vote online in 2015. activities and a thank you to Pension Reps will distribute sealed envelopes with voter instructions on legislators for supporting HB 3695 7 November 6, 2015. Voters sign on to the election system using a computer or hand- held electronic device, enter the required information, and submit the ballot. Continued on page 5 Executive Director’s Letter: Lessons from the Past The September 17, 2015, edition The president of the pension her story, “Illinois lawmakers gave of the Chicago Tribune featured fund, Jane Addams – yes, the famous Chicago’s mayor the freedom to this Opinion piece, How to Protect community organizer – turned to ruin school finance,” the retirement Teachers and Taxpayers in the the Illinois General Assembly for security that Addams protected for Pension Crisis, by CTPF Executive help. A landmark law passed in 1907 teachers is at risk again. Director Charles A. Burbridge. required employees and employers Pension holidays taken by to contribute to the Fund and set up Chicago Public Schools and In 1905, the Chicago Teachers’ an elected pension board to oversee approved by lawmakers have Pension Fund faced a crisis. There Charles A. Burbridge, investments. capsized the system and will cost executive director wasn’t enough money coming in to As Chicago Tribune reporter taxpayers billions of dollars to pay for retirement benefits. Heather Gillers recently detailed in correct. It’s just the kind of action Continued on page 2 Executive Director’s Letter continued from cover

Addams sought to guard against more 2. Commit to an actuarial-based funding CTPF Financial than100 years ago. plan that covers annual contributions and Snapshot We must protect our teachers and the unfunded liability. taxpayers from these short-sighted decisions. Fully-funded pension plans let experts – The first step: stop talking actuaries – determine the CTPF Return on Investments about Chicago Public Schools annual contribution needed June 30, 2015 declaring bankruptcy. That’s a to keep the plans stable. The diversion from the real issues – Chicago Teachers’ Pension education policy and funding. Fund is in a hole. We must Rate of Return total Fund CPS bankruptcy – essentially stop digging. The problem Benchmarks allowing the state to insulate was created by pension itself from the problem that it 1 year 3.27% 2.66% holidays. It can’t be solved by helped create – would be morally more pension holidays. 3 year 11.25% 10.64% reprehensible. There are many “Jane Addams knew parties responsible for this crisis. that if Chicago were 3. Make monthly 5 year 11.45% 11.08% No one should be allowed to to thrive, teachers payments to the pension simply walk away. fund, not a once-a-year 10 year 6.31% 6.40% pensions needed to The second step: take be protected.” payment. three legislative actions to fix Pension plans work when percent the system and prevent future today’s benefits are paid with yesterday’s funding failures. 12 contributions and investment earnings, and today’s contributions are invested to pay for 10 1. Make payments to CTPF tomorrow’s benefits. Prudent investment mandatory by law. practices demand that payments to the Fund 8 Pension funds across the country have provide a constant stream of revenue that something in common: payments are 6 can be invested throughout the year. Monthly mandated and the funds have strong tools payments would save Chicago taxpayers tens 4 to use if a payment is missed. Pension of millions annually. payments are not optional, they are A century ago, Jane Addams knew that 2 promised to Chicago’s schoolteachers as part if Chicago was to thrive, teachers’ pensions of their contract. We have to stop pitting 0 needed to be protected. If we are to thrive for 1 year 3 year 5 year 10 year today’s teachers against yesterday’s teachers. the next century that fundamental principle Lawmakers, city and school leaders must must never again be forgotten. Rate of Return recognize that teacher compensation and retirement funding are one and the same. Total Fund Benchmarks

As of June 30, 2015, the approximate Trustees Appointed The Chicago Board of Education appointed two new members to current value of CTPF’s investments the CTPF Board of Trustees. Mark F. Furlong will serve a four- was $10.0 billion. month term ending November 2015, and Gail D. Ward will serve through November 2016. Furlong and Ward fill vacancies created by the resignations of Trustees Andrea L. Zopp and Mark F. Furlong Carlos M. Azcoitia. Furlong retired as President and Chief Executive Officer of BMO Harris Bank, N.A., on June 1, 2015, following a lengthy career in business and public service. Ward retired from the Chicago Public Schools in 2008, after a distinguished 38-year career as a teacher and principal at the elementary and high school levels. Gail D. Ward 2 CTPF News In Memory of Esther Golar, Illinois State Representative A message from Charles A. Burbridge, CTPF executive director

On behalf of CTPF and our members, in Springfield have on people and I want to pay tribute to and recognize neighborhoods and she sponsored Illinois State Representative Esther Golar, several legislative initiatives important who passed September 21, 2015. to the Fund. House Resolution 816, The voice of the 6th District for the introduced during the 98th General past nine years, Rep. Golar represented Assembly, called attention to the State’s nearly 1,000 CTPF members. An responsibility to fund CTPF. Another activist and advocate, she fought for her critical measure, House Bill 1484 which constituents, her community, and her she co-sponsored with Majority Leader city. She focused her work on improving Barbara Flynn Currie (and 11 other co- Representative Esther Golar (pictured right) housing and education and fought for sponsors), was one of the first bills that with CTPF lobbyist Bukola Bello, following a services for the most vulnerable members gave serious consideration to having the 2012 meeting of the Black Caucus held in the of our community. She raised her voice State of Illinois pay CTPF’s normal costs. CTPF office. for those who struggled to be heard. While Representative Golar While many of our members supported us legislatively in Springfield, in our offices. She made sure that her called her district home – they were not she went a step further – working to peers understood and appreciated the simply constituents to her – they were educate her peers and colleagues about importance of teachers in the City of her friends. Her leadership and support pensions and CTPF. Chicago. She believed in promises, and in consistently reflected the idea that We were honored to host her and Chicago’s teachers. teachers form the foundation of strong the Black Caucus in 2012, when she held Many were touched by Representative communities, and she worked tirelessly an unprecedented meeting dedicated Golar’s kindness, wisdom and generosity to support the interests of our members. to pension issues. Following the success of time and talent. We will miss her Representative Golar well of that meeting, Representative Golar greatly and offer our sincere condolences understood the impact that decisions hosted a meeting of the Latino Caucus to her family, friends, and community.

CPS Makes CTPF Hosts Second Leadership $619 million Roundtable payment CTPF hosted a second meeting The Chicago Public Schools made a final of the Illinois Reciprocal Funds pension payment on June 30, 2015, bringing Leadership Roundtable on their total payment to $619 million for July 30, 2015. The group of the 2015 fiscal year. This is the second year leaders from the 13 Illinois the Fund received a substantial payment Reciprocal Funds reconvened following two decades of underfunding. to discuss the economic “I hope that the policy makers impact pension funds have recognize the need to address education on Illinois, consider ways to funding so that teachers do not need to work cooperatively, and discuss choose between teaching security today and current legislative issues. CTPF President Jay C. Rehak leads a discussion during the retirement security tomorrow,” said Charles “We had another second meeting of the Illinois Reciprocal Funds Leadership A. Burbridge, CTPF executive director. “The productive dialogue examining Roundtable, July 30, 2015. need for long-term solutions is not erased ways we can work together, and set a goal of producing an aggregated economic impact with this payment.” statement that can truly reflect the positive impact that pension funds have on the State of Illinois,” said Jay C. Rehak, president of the CTPF Board of Trustees. “I’m looking forward to continuing this work at our October meeting.”

3 Teacher Trustee Candidate Information Three certified candidates for two open positions Lois W. Jay C. Donna L. Ashford Rehak Seals [email protected] [email protected] [email protected]

TEACHING EXPERIENCE/ TEACHING EXPERIENCE/ TEACHING EXPERIENCE/ EMPLOYMENT HISTORY EMPLOYMENT HISTORY EMPLOYMENT HISTORY Substitute Teacher High School English Teacher, Whitney M. Young Employed in CPS for 19 years, Middle School Teacher – O’Keeffe Magnet High School, 1993-2001 and Currently teaching Library Science at William Elementary 2003-Current Middle School Teacher – Copernicus K. “New” Sullivan Elementary School (6 Interim Executive Director, CTPF, 2014 Elementary years) Chicago Teachers Union, 2001-2003 Assistant Former Library Science teacher at Burnside EDUCATION/CERTIFICATION Director, Quest Center, Elementary (5 years) Director of Communications, Assistant to the Master of Education, Curriculum and Former Resource teacher at Vanderpoel Elementary President Instruction, Lewis University Elementary English Teacher, Daniel Webster (4 years) and Administrative Certificate Type 75, Lewis Elementary School, 1989-1993 Doolittle Elementary (4 years) University Bachelor of Science, Chicago State EDUCATION/CERTIFICATION EDUCATION/CERTIFICATION University B.A., Honors English, University of Illinois, Middle School Endorsements (Social Doctor of Education, Loyola University Chicago, Champaign-Urbana, 1978 Science, Language Arts, Math) Curriculum and Instruction M.A., Adult Education, Northern Illinois Univ., 1991 18.5 Hours Fiduciary Training and Investment Master of Science, Chicago State University, National Board Certification, 2006 Education Library Information System Certificate of Completion – Made in America OTHER MEMBERSHIPS Master of Arts, Concordia University, Benefits Summit AND EXPERIENCE Urban Education Certificate of Attendance – Health Care President, Chicago Teachers Pension Fund, (CTPF), Certificate of Administration, Management 2012-Current Concordia University OTHER MEMBERSHIPS Member, Board of Trustees, CTPF, 2009-Current Bachelor of Business Administration, AND EXPERIENCE Chairperson, CTPF Communication Committee, Loyola University Chicago, 2012-2014 Vice President, Chicago Teachers’ Pension National Board of Professional Teaching Standards, Member, CTPF Pension Law and Rules Committee, Fund (CTPF), Board of Trustees Middle School General 2009-Current (2011-Current) Member, CTPF Personnel Committee, 2014-Current Trustee, CTPF Board of Trustees, OTHER MEMBERSHIPS Member, American Federation of Teachers Pension (2009-Current) AND EXPERIENCE Committee Roundtable, 2010-Current Chicago Teachers’ Pension Fund Chairperson, American Federation of Teachers Association for Supervision and Curriculum Committees: Pension Committee Roundtable, 2015 Development, Pension Laws and Rules Committee Founding Member, Illinois Reciprocal Funds Chair and Member Illinois Chapter Leadership Roundtable, 2015 Claims and Service Credit Committee Founding Member, National Sorority of Phi Delta Member, Council of Institutional Investors, Member Kappa, Zeta Gamma Chapter 2013-Current Health Insurance Committee Member Life member, Phi Delta Kappa, Loyola University Member, National Council on Teacher Retirement, Investment Committee Member Chicago Teachers Union Member 2014-Current Finance and Audit Committee Member Speaker, Illinois Public Pension Fund Member, Alpha Kappa Alpha Sorority, Inc. Return to Work Hearings for Retirees Association, 2014 Teacher Leader, Educators 4 Excellence Committee Member Speaker, National Association of Securities Volunteer, Lyle for Kids Health Plans Subcommittee Member Professionals, 2014 Volunteer, Fredrenna Lyle for Alderman By-laws and Rules Subcommittee Member, Harvard Trustee Leadership Forum, Volunteer, Fredrenna Lyle for Judge Member 2013-Current Founding Member, Illinois Reciprocal Funds Member, Chicago Teachers Union, 1989-Current Leadership Roundtable Member, Chicago Teachers Union House of National Council on Teacher Retirement Delegates, 1993-Current National Council of Institutional Investors Member, Chicago Teachers Union Executive Chicago Teachers Union Trustee Board, 2010-2013 Chicago Teachers Union Executive Board Chairperson, Whitney M. Young Magnet High Member School PPC, 2004-2014 Chicago Teachers Union Member Member, Whitney M. Young Technology Committee American Federation of Teachers Delegate Chicago Public Schools Technology Innovator of the and Member Year 2014 Illinois Federation of Teachers Delegate and Member, Writers Guild of America Member Member, American Society of Composers, Authors CORE Steering Committee Member and Publishers CORE Member Member, Chicago Writers Association National Association of Securities Married to Susan Salidor, three children, Hope, Professionals, Supporter Hannah and Ali 4 Online Voting Guide CTPF Calendar Trustee meetings, held in the CTPF office, are open to the public. Please confirm all meeting times/dates at www.ctpf.org. CTPF is committed to conserving member resources and has switched to secure electronic October ballots for the November 6, 2015, Teacher Trustee 22 9:30 a.m., Trustee meeting Election. Online voting offers expanded polling 29 12:01 a.m. absentee polling opens for members who hours and faster tabulation, while reducing paper, requested absentee ballots for printing, and storage costs. Teacher Trustee Election November 2. Pension Reps 1. ELECTION DAY 6 5:30 p.m. polls close for November 6, 2015 DISTRIBUTE Teacher Trustee Election ENVELOPES 11 Veterans Day, office closed with voting instructions 19 9:30 a.m., Trustee meeting 26-27 Thanksgiving holiday, 4. LOGON to the voting office closed site using a computer ecember VOTE D or hand-held device 3. Polls 10 9:30 a.m., Trustee meeting OPEN (tentative) 7:00 a.m. – 5:30 p.m. 25 Christmas holiday, 5. ENTER office closed required 6. VOTE January for up to 2 information Teacher Trustees 1 New Years Day holiday, office closed 18 Birthday of Martin Luther King, Jr., holiday, office closed 2015 Teacher Trustee Election Fast Facts: Office/Mailing Address Election Day is November 6, 2015 Chicago Teachers’ Pension Fund 203 North LaSalle Street, suite 2600 Polls open 7:00 a.m. - 5:30 p.m. Chicago, Illinois 60601-1231 312.641.4464 fax: 312.641.7185 Pension Reps will distribute sealed envelopes www.ctpf.org with voting information on Friday, November 6 [email protected] Visit www.ctpf.org/electioncentral Office hours: for more information. 8:00 a.m. – 5:00 p.m. M-F 5 5 CTPF News Staff Changes and Promotions CTPF has announced new directorship and three staff promotions. Elise J. Daughhetee joined CTPF on July 15, 2015, as Director of Human Resources. She is responsible for the overall administration, coordination, and evaluation of human resources functions. Daughhetee has more than 20 years experience as a HR professional, managing Elise J. Daughhetee Sheron Banks-Fallis Tom Gajewicz Vandana Vohra every aspect of the HR life cycle. She holds a master’s degree in human resource CTPF promoted Sheron Banks-Fallis Gajewicz joined the Fund as a Network management, a bachelor’s degree in to Director of Member Services, Tom Administrator in 2005. He previously criminology, and is certified as a general Gajewicz to Director of IT Infrastructure, worked for Zone Computer Solutions and practice paralegal. She holds several and Vandana Vohra, to Director of IT holds a B.S. in communication studies. additional professional certifications Applications. Vohra joined the Fund in 2013, and including Senior Professional in Human Banks-Fallis joined CTPF as a Field became a development team supervisor in Resources (SPHR), and Senior Human Service Representative in 2006, and was 2015. She previously worked for Argonne Resources Manager-Senior Certified promoted to Member Services Manager in National Laboratory and holds a B.S. in Professional (SHRM-SCP). 2007. She previously worked for AOL Time statistics. Warner and holds a B.S. in general studies.

Rehak Appointed to AFT Trustee Council CTPF Board of Trustees President Jay C. Rehak has been tapped to head the American Federation of Teachers Trustee Council. Rehak joins fellow teacher trustees from around the country who 120th Anniversary monitor and examine investment managers to make sure that they Celebration support defined benefit retirement plans. Jay C. Rehak CTPF celebrated the 120th Anniversary of its founding on July 1, 2015. Activities and events throughout the year will CTPF in the News honor and celebrate the Fund’s history Several media outlets have featured CTPF in interviews, of caring for teachers and helping conversations, and perspective pieces in recent months. them prepare for the future. Executive Director Charles A. Burbridge appeared on the news magazine Chicago Tonight in a live interview Student Art Contest on June 30, 2015, on WTTW. The segment featured a Partnership discussion of current pension issues and the state of CTPF The Fund has partnered at the end of the fiscal year. Executive Director Charles A. with the After School Burbridge appeared on the news Burbridge was also interviewed on The Cliff Kelley magazine Chicago Tonight, Matters (ASM) program Show, WVON radio (1690 am), Thursday, August 6, 2015. June 30, 2015. to conduct a Fine Arts During the program, Burbridge discussed the current issues Contest for CPS students. The contest facing the Fund, and the role CTPF members play in the City of Chicago and in Illinois. encourages children to explore, “My Vision The Chicago Tribune ran an opinion piece by Burbridge, “How to Protect Teachers and for Education in the Year 2135,” using Taxpayers in the Pension Crisis,” September 17, 2015 (see Executive Director’s letter, page 1). the medium of their choice. Winners will Find links to these stories and more information on the Current News page at receive prizes and special recognition from www.ctpf.org. the CTPF Board of Trustees. Find more information about the program on the Current News page at www.ctpf.org. 6 Legislative Update

CTPF Offers Testimony to Legislators CTPF offered testimony to the Illinois the Illinois House Executive Committee in legislators on three recent occasions. Springfield, and August 18, 2015, Burbridge July 28, 2015, Vice President of the testified during a subject matter hearing CTPF Board of Trustees Lois W. Ashford of the Illinois House Revenue and Finance and Deputy Executive Director and Chief Committee in Chicago. Legal Officer Tiffany R. Reeves traveled Burbridge expressed the Fund’s to Springfield to testify during the Illinois opposition to the legislation which House Personnel and Pensions Committee underfunds pensions by $540 million and subject matter hearing on Governor extends the payment period to 2063. Rauner’s Pension Proposal. Trustee Ashford “We appreciate the attention that these and Ms. Reeves provided lengthy testimony, hearings have brought to the fund and the answered questions from committee challenges we face,” said Burbridge. “We used Vice President of the CTPF Board of Trustees members, and voiced CTPF’s opposition to these opportunities to reflect on the mistakes Lois W. Ashford, Deputy Executive Director several items in the proposal. of the past, and to educate legislators and Chief Legal Officer Tiffany R. Reeves, appear in Springfield during an Illinois CTPF Executive Director Charles A. about the current state of CTPF. Our House Personnel and Pensions subject matter Burbridge offered testimony opposing SB testimony clearly stated the damage done by hearing in July. 318 during two August hearings. August 12, underfunding and demonstrated the need 2015, Burbridge spoke during a meeting of for full payment to CTPF.”

HB 3695 Passes House, CTPF Opposes Stalls in Senate SB 318 House Bill 3695, legislation which would Rep. Joe Sosnowski (R-Rockford), Rep. CTPF opposes Senate Bill 318 which passed have restored the CTPF Tax Levy, passed out Arthur Turner (D-Chicago), Rep. Christian out of the Illinois Senate on August 4, of the Illinois House but expired on May 31, L. Mitchell (D-Chicago), Rep. Elgie R. 2015, and moved to the Illinois House for 2015, without being called for a vote in the Sims, Jr. (D-Chicago), Rep. Camille Y. Lilly consideration. The bill is being sponsored Illinois Senate. (D-Chicago), and Rep. John D’Amico in the Illinois House by Rep. Barbara Flynn CTPF joined the Retired Teachers (D-Chicago). Currie (D-Chicago), and at press time was Association of Chicago, the Chicago House Bill 3695 then moved to the awaiting action by the House Executive Principals and Administrators Association, Senate where it was sponsored by Sen. Committee. The bill reduces CPS required and the Chicago Teachers Union in support Mattie Hunter (D-Chicago) with Co- contributions for 2016 and 2017 by $540 of the measure which would have returned a Sponsors Sen. Don Harmon (D-Oak million. stable source of revenue to the Fund. Park), Sen. Ira I. Silverstein (D-Chicago), This past summer, CTPF members sent “We thank our sponsors for their Sen. William Delgado (D-Chicago), Sen. more than 6,000 e-mails to legislators to support of this bill and our members for Napoleon Harris, III (D-Harvey), Sen. oppose this legislation. Check the Current taking action on this important legislation,” Kwame Raoul (D-Chicago), Sen. Martin A. News page at www.ctpf.org and social media said Charles A. Burbridge, CTPF executive Sandoval (D-Cicero), Sen. Heather A. Steans for updates on this legislation. director. (D-Chicago), and Sen. Michael E. Hastings The bill passed out of the Illinois (D-Matteson). The bill unanimously House with bipartisan support on a vote passed out of the Illinois Senate Executive of 102 to 9. The legislation was written Committee on May 6, 2015, but was not and sponsored by State Rep. Marcus C. called for a floor vote. Evans, Jr., (D-Chicago) and House Speaker “We also want to recognize the Michael J. Madigan (D-Chicago) with Chief important role our members played in Co-Sponsor Rep. Barbara Flynn Currie building momentum for this legislation,” (D-Chicago), and received support from said Burbridge. “A stable source of revenue several additional Co-Sponsors including is critical for CTPF and the financial security Rep. David Harris (R-Mount Prospect), of our 63,000 members.” Rep. Anthony DeLuca (D-Chicago Heights), 7 Presorted Standard U.S. Postage PAID Chicago, IL Permit No. 2237 203 North LaSalle Street, suite 2600 Chicago, Illinois 60601-1231

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To provide, protect, and enhance the present and PEN ION Chicago Teachers’ Pension Fund future economic well being of members, pensioners and beneficiaries through efficient and effective  STAY IN TOUCH  management of benefit programs, investment practices and customer service, and to commit  STAYYour pension IN is yourTOUCH future.  to earning and keeping the respect and trust of Stay informed about the Chicago Teachers’ Pension Fund (CTPF) and your retirement benefits. the participants through quality service and by Your pension is your future. protecting retirement benefits, in compliance with Stay informed about the Chicago Teachers’ Pension Fund (CTPF) and your retirement benefits. applicable laws and standards. CALL CLICK Board of Trustees 312-641-4464 www.ctpf.org Jay C. Rehak, president CALL CLICK Speak to a Member Services Rep., Find a pension estimator, forms, Lois W. Ashford, vice president Mon.-Fri., 8 312-641-4464a.m.- 5 p.m. documents,www.ctpf.org and current news. Bernie Eshoo, financial secretary Speak to a Member Services Rep., Find a pension estimator, forms, Mon.-Fri., 8 a.m.- 5 p.m. Raymond Wohl, recording secretary documents, and current news. Jeffery Blackwell E-MAIL Robert F. Bures Get answers fromE-MAIL [email protected] Mark F. Furlong Tina Padilla Get answers from [email protected] Walter E. Pilditch FOLLOW REGISTER Mary Sharon Reilly Scan the code or register Jerry Travlos CTPFFOLLOW yourREGISTER e-mail at www.ctpf.org Gail D. Ward Scan the code or register Charles A. Burbridge, executive director CTPF your e-mail at www.ctpf.org READ read E-News and Pension News READ read E-News and Pension News RESOURCE Your Pension Representative is: RESOURCE Your Pension Representative is: