Private employers pay into our social security. Why shouldn’t CPS have to pay into the teachers pensions since they do not get social security?
The failure of CPS and the City of Chicago to pay their contribution into the Chicago Teacher Pension Fund is one source of the current problem.
Since 1995 CPS has been allowed to divert their pension payment contributions to pay other expenses.
If an employer in the private sector had skipped out on their Social Security required contribution of roughly 6% they would be in violation of federal law and charged with a crime.
Since 1995 the Chicago Teachers Pension Fund (CTPF) has gone from being 100% funded to around 50% funded.
Teachers currently pay 9% of their salary into the CTPF. 2% is paid directly. 7% was to be paid by the board of education as part of a negotiated agreement. The 7% board pickup of the pension contribution was offered instead of a pay raise.
The CTPF is funded by three sources. It was supposed to be funded by board contributions, teacher contributions and return on investments.
The irony is that CPS teachers are required to live in the city of Chicago. Along with other Chicago public employees they are asked to pay into the pension system twice: Once through direct and indirect employee contributions and also as city taxpayers.
To answer your question, CPS is supposed to do what private sector employers do. They have simply refused.