Retirement Plan For CTA Employees

The Retirement Plan for Chicago Transit Authority (CTA) Employees is a public pension fund established to provide retirement, disability, and death benefits for its members. The plan was originally negotiated in 1949 for members of the Amalgamated Association of Street, Electric Railway, and Motor Coach Employees of America, Divisions 241 and 308, and was extended to all other eligible CTA employees later that year. When the CTA acquired the Chicago Motor Coach Company in 1952, its employees were incorporated into the plan in 1953.

The fund's objective is to provide retirement allowances for eligible CTA employees. Its revenue is generated through contributions from both the CTA and its employees, as well as from investment earnings. The plan is a defined benefit pension plan that covers nearly all full-time, permanent union and non-union employees. Alongside the main retirement plan, a separate Retiree Health Care Trust (RHCT) was established in May 2008 to manage and administer health care benefits for retirees, their dependents, and survivors. This separation was mandated by Illinois Public Acts in 2006 and 2008 to address significant underfunding challenges.

The Retirement Plan is administered by an eleven-member Board of Trustees, which is also responsible for the investment policy and the selection of investment managers. The board includes five members appointed by the Chicago Transit Board, three by the Amalgamated Transit Union (ATU) Local 241, one by ATU Local 308, one representing non-union employees, and one appointee from the Regional Transportation Authority (RTA). The RHCT is managed by a separate Board of Trustees. The fund provides various resources for its members, including plan summaries, enrollment guides, and calculators.

Keywords: public pension fund, Chicago Transit Authority, CTA, retirement benefits, transit employees, pension plan, defined benefit plan, employee benefits, Retiree Health Care Trust, RHCT, Amalgamated Transit Union, retirement allowances, investment management, employee contributions