When you leave employment with CPS or a charter school, you must decide how to manage the pension assets you have accumulated with the Chicago Teachers' Pension Fund (CTPF). There are three primary options when leaving employment:
- Retire. You may retire with a pension, if you meet age and vesting requirements.
- Defer your pension. You may leave your pension assets at CTPF until you reach retirement age.
- Accept a refund of contributions. Contributions may be rolled over into another qualified retirement plan or paid to you. When you accept a refund, you forfeit all future benefits and will need to submit Forms 804-840: Refund Application. Illinois Statue requires a 60-day waiting period from the date of termination from your Employer. Once the waiting period is completed, allow up to twelve weeks for processing of a complete application. Download the Refund of Contributions information sheet to learn more.
Required Minimum Distribution
As a qualified defined benefit plan, CTPF is subject to certain requirements of the Internal Revenue Code (IRC), including the Required Minimum Distribution Rule (RMD) under Section 401(a)(9). This requires members who are no longer employed by Chicago Public Schools, Charter schools, or any other retirement or pension fund within the Illinois Reciprocal System to begin receiving monthly pension payments, or take a refund of contributions, by April 1st of the year following the year the member turns age 72 or permanently ceases covered employment, whichever is later. The Internal Revenue Service may impose a 50% excise tax on the amount distributed to the member for failure to start benefits when required.
Download the Leaving Employment information sheet for detailed information on your options when leaving employment. To schedule a time to discuss your options with a CTPF representative, please contact Member Services, 312.641.4464.
CTPF is trying to contact members who are over age 72, but who have not commenced benefits or taken a refund of their contributions. If you or someone you know is included on the Lost Payees Listing, please contact Member Services, 312.641.4464.