b'PENALTY REDUCTION LEGISLATION ENACTED FOR!RETIRED EMPLOYEES RETURNING TO WORKGovernor Pritzker signed legislation amending state law for CTPF retirees who return to employment with Chicago Public Schools, contract schools, or charter schools. Effective on August 15, 2025 and retroactive to July 1, 2020, P.A. 104-0284 revises the penalty for exceeding statutory return-to-work limits from a complete suspension of pension benefits to a proportional day-for-day reduction for affected members.This is a very positive development for our members, and we are grateful that the Illinois General Assembly, under the leadership of Senate Pensions Chair Robert F. Martwick, has successfully passed this important measure. The CTPF Board of Trustees has long advocated for these reforms, which particularly impact members who return as substitute teachersmany of whom did so during the pandemic to help meet the teacher shortage. I would like to acknowledge Recording Secretary and Return-to-Work Committee Chair Lois Nelson and former Pension Law and Rules Chair Jacquelyn Price Ward for their work to advance this legislation. The collaboration of the entire Board of Trustees with myself and the legislative team was essential to raise awareness as we advocated for the passage of this legislation.According to Illinois statute, CTPF retirees may work for any entity other than a Chicago Public, contract, or charter school (Employer) without restrictions. If retirees return to an Employer on a permanent or annual basis, their pensions are subject to immediate cancellation. Temporary or non-annual employment with an Employer is permitted so long as it does not exceed 140 days per fiscal year for teachers or 900 hours* for driver education teachers.The new legislation reduces the penalty for surpassing these thresholds: pension payments will now be withheld only for each day worked more than the permitted maximum. This replaces the previous provision, which mandated cancellation of both pension and health insurance benefits upon any violation of the statutory limits.The legislations retroactive application allows for case-by-case review, enabling penalties to be recalculated using the revised day-for-day approach rather than full benefit cancellation. CTPF has identified 59 members impacted by this change and will communicate with them directly regarding a revision of their penalties and possible refunds. See the Return to Work page at ctpf.org/returntowork for updated information.*A previous version of Pension News contained a typographical error, incorrectly stating that the hours worked limit for Drivers Education instructors is 950. The correct number is 900. CTPF FUNDING UPDATE2025 STATE OF THE CTPFs required contribution is $1,015,514,000FUND RELEASEDfor fiscal year 2025. As of August 22, CTPF has received:During the June 26, 2025, Board of$366.1 million from property tax receiptsTrustees meeting, CTPF Executive credited to the normal cost requirementDirector Carlton W. Lenoir, Sr., delivered $353.9 million from the State of Illinoisa State of the Fund report. The report $48.2 million from the Chicago Board ofreviews and highlights the progress made in Fund administration since the Educationfirst State of the Fund was issued in June of 2024. A total balance of $247.3 million is outstanding andThe State of the Fund uses the four pillars of the Funds payment is expected this fall, with interest. mission to review progress made in all areas and reviews FUNDED RATIO progress in administration based on the four pillars of CTPFs funded status is calculated by the Funds actuaryCTPFs mission. once a year, and the next report will be availableI shared this report with pride and gratitude to our Board this fall. and employees who made this possible. Together, we have CTPF PENSIONSmade tremendous progress during the past three years, When members vest, they qualify for a lifetime pension,which has taken teamwork and effort from all stakeholders. guaranteed by the Illinois Constitution. Pensions areThese achievements reflect our shared commitment to determined by a formula, and do not change withexcellence and innovation, setting a solid foundation for market conditions.continued growth and service to our members, saidFINANCIAL & INVESTMENTS REPORTS Carlton W. Lenoir, Executive Director. CTPF is committed to fiscal transparency. AuditedFind the State of the Fund report at financial statements, actuarial, and investment reportsctpf.org/2025stateofthefund.can be found at ctpf.org/financial-investment-reports.4'