Why is the CTU not paying its employees pensions?
By Jim Vail
When the union that is defending our pensions is not paying the pensions of its own employees, you know something is wrong.
Substance News reported earlier this month that the Chicago Teachers Union has been late paying the pensions of its employees and has not paid the late fees.
The Chicago Teachers Pension Fund (CTPF) said the CTU owed $40,382.94 due to untimely payroll records and pension payment submissions. But Substance reported that CTU Financial Dir. Kathy Catalano was requesting a waiver of the fees, liquidated damages and interest.
This is strange indeed, and we can't seem to get answers. I contacted CTU press relations and President Jesse Sharkey and they have not responded after numerous requests for comment.
Sharkey told delegates at the last HOD meeting that the CTU was disputing the late-fee charges.
But this didn't just happen once, it's happened twice!
When I was reporting for Substance News, I remember the CTPF was having trouble getting all the charter schools to pay regularly into the pension fund. The fund even had to sue a few operations.
But the CTU has been on the front lines fighting the battle to save our pensions. In fact, that is the reason why disgruntled workers are now complaining about their salaries that saw little to no increase in this last contract because the union will say it spent all its energy on saving the 7 percent pension pickup.
The following is a Q&A with the Pension Fund with a fellow CTU delegate:
By Jim Vail
When the union that is defending our pensions is not paying the pensions of its own employees, you know something is wrong.
Substance News reported earlier this month that the Chicago Teachers Union has been late paying the pensions of its employees and has not paid the late fees.
The Chicago Teachers Pension Fund (CTPF) said the CTU owed $40,382.94 due to untimely payroll records and pension payment submissions. But Substance reported that CTU Financial Dir. Kathy Catalano was requesting a waiver of the fees, liquidated damages and interest.
This is strange indeed, and we can't seem to get answers. I contacted CTU press relations and President Jesse Sharkey and they have not responded after numerous requests for comment.
Sharkey told delegates at the last HOD meeting that the CTU was disputing the late-fee charges.
But this didn't just happen once, it's happened twice!
When I was reporting for Substance News, I remember the CTPF was having trouble getting all the charter schools to pay regularly into the pension fund. The fund even had to sue a few operations.
But the CTU has been on the front lines fighting the battle to save our pensions. In fact, that is the reason why disgruntled workers are now complaining about their salaries that saw little to no increase in this last contract because the union will say it spent all its energy on saving the 7 percent pension pickup.
The following is a Q&A with the Pension Fund with a fellow CTU delegate:
For what period of time did CTU neglect to pay the required contributions to CTPF? I am hearing it was for a period of over six months.
After review of our invoices we are not aware of CTU neglecting to pay required pension contributions. However, our records indicate that there were untimely submissions for some payroll records for FY 2017 and FY 2019.
Are payments to CTPF made weekly, monthly, quarterly?
CTU is scheduled to make bi-weekly payments.
How much money in total did CTU miss paying CTPF?
Our records indicate that CTU has not missed paying their required pension contributions. In instances where the employer reported in an untimely fashion, late fees have been assessed as required by statutes.
Has CTU paid the money money owed? If not, is there a plan in place to pay the fund what is owed?
At this time there is money owed which is due to statutory penalties assessed for the late payments. According to CTPF’s Administrative Rules, employers have the option to request a waiver of statutory penalties assessed. CTU has exercised this option and the request will be presented to the CTPF Board for their review.
Did the fund get compensated by way of penalty payments from CTU?
According to our records, required pension contributions have been made by CTU. Late fees have been assessed for untimely payments received. Final determination will be made by the CTPF Board.
Did CTPF send email notices related to late payments to CTU? If so, when and how often was CTU reminded of their need to pay? Did CTPF make phone calls to CTU in an effort to get payment? Did CTPF make a personal visit to CTPF in an effort to get the monies from CTU?
As Chuck has mentioned, CTPF staff provides notice through email, phone calls and estimated bills to ensure compliance with reporting requirements.
What is the amount of statutory penalties that have been assessed for the late payments?
A detailed discussion of delinquent statutory penalties for all Employers including CTU is held at each monthly Finance and Audit Committee meeting. At the last Finance and Audit Committee meeting on December 6, 2018 CTU was reported as having $37,381.18 in statutory penalties outstanding as of November 27, 2018.
Is discussion of the CTU late payments and imposed penalties reflected in CTPF Board minutes for the periods when CTU was late with payments?
The discussion is captured in the Finance and Audit Committee meeting minutes which are reported out to the full CTPF Board on a monthly basis by the Finance and Audit Committee Chair as part of his report. That report is captured in the CTPF Board minutes.
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