Pension and RHCT: How Much Money Is In There?
I get alot of questions about our Pension and the infamous Retiree Health Care Trust (RHCT).
Some observations:
1. The reports only go back to 2020. There should be at least two quarterly reports from 2021 by now. Does that bother you like it bothers me? So I sent an email to John Kallianis. He is the Executive Director for Pension and RHCT. Hopefully he will get back to me with an answer. I will keep you posted.
2. As of the end of 2020, the RHCT had a value of $1,041,818,474. As of the end of 2020, the Pension has $1,933,272,373. I did a report from a recent meeting at the union office where I learned that our pension is underfunded and our RHCT is overfunded. Shouldn't it be the other way around?
3. At my Steward class I learned that as of 2021, 12% of the pension costs are paid by workers. 24% is paid by the CTA. However, with a 6% credit going towards the RHCT bonds, the total contribution is actually 18%. That bond is due to expire in the year 2035.
4. Looking at the 2019 RHCT annual report, I confirmed that this fund is fed strictly from us, the workers. A coworker asked this question and I was not sure at the time.
5. There are definitely retirees and former employees using the RHCT money owed to them. Payouts to healthcare providers was over $128 million in 2019. But that is not alot of money being paid out in my opinion. What do you think?
6. The RHCT is a huge problem. The proliferation of Part-Time jobs and forcing those workers to pay into it is criminal. The pension will break if we do not replace the PT jobs with FT jobs. It is clearly evident.
I highly recommend you view the annual reports. You will learn alot.
Pension fund
Quarterly Reports
Annual Reports
RHCT
Quarterly Reports
Annual Reports
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