FOR IMMEDIATE RELEASE:
Wednesday, August 12, 2015
For more information, contact:
CPS Office of Communications
Chicago Public Schools will save nearly $21 million over the next three years by eliminating the pension pickup for central office, regional and non-union support staff, as the district continues to work to keep resources in the classroom and preserve teacher pensions. When the pension pickup is fully phased in, the annual savings will be $11.1 million.
The pension pick up is being eliminated for new employees, and phased out entirely for Central Office, Network and non-union support staff over the next three years. The changes will affect about 2,100 current employees, beginning with the Aug. 24 pay period that appears in September paychecks. Today, CPS “picks up” 7 of the 9 percent for employees.
Principals and assistant principals are not impacted.
“Our goal is to protect classrooms and protect teachers’ pensions, which will require everyone pitching in – and we’re leading by example today by ending pension pickup for Central Office staff,” said CPS CEO Forrest Claypool. “Making pension payments at the expense of our children’s classrooms could result in reductions of thousands of teachers and unacceptable class sizes. At the same time, protecting classrooms but shortchanging teachers’ pensions isn’t fair to the teachers who earned their pensions and deserve them, which is why everyone needs to be part of the solution.”
The savings will accumulate to $20.8 million over three years as it is eliminated for new hires and phased out for existing staff. By fiscal year 2018, these changes will save $11.1 million annually:
- In FY16, existing employees will pick up an additional 2 percent of their pension costs for a savings of $2.9 million. Employees will pay 4 percent of the employee contribution.
- In FY17, employees will pay an additional 2 percent for an additional savings of $3.9 million and cumulative savings of $6.8 million. Employees will pay 6 percent of the total employee contribution.
- In FY18 employees will pay an additional 3 percent, saving the district an additional $4.3 million, for a cumulative savings of $11.1 million. Employees will pay the full employee contribution.