Pension Woes

Chicago Teachers Pension Fund in Turmoil?

By Jim Vail

CTPF President Jeffrey Blackwell and former CTU President Karen Lewis

Chicago Teachers Pension Fund (CTPF) President Jeffrey Blackwell complained that the pension board is being pressured to hire lobbyists close to Illinois House Speaker Mike Madigan and accused the fund of "a culture of intimidation, intentional misinformation, discrimination, slander, misogyny, fear-mongering, blatant racism, sexism and retaliatory actions."

Blackwell's letter was first made public in the minutes of the Aug. 20 board meeting that a former teacher uncovered. Crain's Chicago Business and Capitol Fax have reported the contents of this explosive letter.

Madigan is big news today because he is under attack for demanding jobs and payoffs in return for favors. Commonwealth Edison has paid a $200 million penalty for illegally paying the speaker and awarding jobs to his associates in return for favorable regulatory actions, including raising utility rates. A class-action lawsuit was filed on behalf of rate payers against ComEd and Madigan under the RICO Act, which is usually used to prosecute the mob.

The Chicago Teachers Union (CTU) and many other unions are close to the speaker because his support is considered crucial to getting any favorable teacher or pension legislation passed. 

The CTPF which oversees $12.3 billion in retirement monies has been in turmoil ever since trustees have accused the fund's executive director Chuck Burbridge of racism and harassment. They have also questioned why he was hired to run the fund from the start.

Burbridge just announced his resignation, and it is not clear if it is in relation to Blackwell's letter. One trustee said it could be related to him having cancer, but they are not sure.

Jeffrey Blackwewll

Blackwell's letter could be a game of politics. One fund insider noted that previous CTPF President Jay Rehak tried hard to become the executive director of the fund until Burbridge was hired. It could be that Blackwell is angling for a position in the fund and this is a power play.

The insider noted that Blackwell has turned off the mic when fund trustee Tina Padilla would try to speak during the pension meetings. 

In terms of racism, there are Latinx and African American trustees and employees. An investment fund manager is from Nigeria, and there are a number of black employees at the fund.

"There is a hidden agenda here somewhere," the source, who wanted to remain anonymous, stated.

Blackwell and Padilla are members of CORE, the current CTU party that heads the teachers union. The majority of pension trustees are affiliated with CORE, two retirees and six teachers. There are also two Board of Ed trustees and one principal.

Tina Padilla told Second City Teachers she will not make a comment  until she knows the whole story. She is running in the next election on the CORE ticket.

It is difficult if not impossible for members of a party to go against the party line and expect to maintain support from their party to get re-elected. Blackwell's action appears to have crossed CORE's line which is to support Madigan.

It is difficult to beat the ruling party to become a pension fund trustee. The next pension fund election will pit two Members First candidates Mary Esposito-Usterbowski and Phil Weiss against CORE candidates Cathy Cunningham-Yee and current trustee Tina Padilla. Members First has run candidates in past elections only to lose. Electronic voting will take place November 2nd thru 6th.

CORE became a force when Jay Rehak and Lois Ashford won the election to become CORE pension fund trustees, while the UPC ran the union with President Marilyn Stewart. 

The October 15 pension fund meeting will determine who will be named the interim director.