Make CTA Safe Again: Proposal to Amend Illinois Public Act 95-708

Guest Blog by David Marden  

 “The General Assembly finds that the financial health of the Chicago Transit Authority Retirement Plan has a direct impact on public safety throughout the City of Chicago.”

Executive Summary

Every day, headlines warn Chicago residents about the dangers of crime on our streets. News coverage often focuses on isolated acts of violence or disorder, yet far less attention is given to decisions made in boardrooms and government offices that can affect the safety and financial security of millions of people for decades.

When pension policies allow a select group of individuals to receive benefits that differ substantially from the rules applied to the workforce as a whole, the consequences extend far beyond the retirement system. Decisions that increase long-term pension liabilities without corresponding funding obligations can shift costs onto future employees, taxpayers, and the riding public.

At the CTA, the financial consequences of past pension decisions continue to be borne by today's workforce. New employees now contribute 14.795% of every paycheck toward retirement and health care trust obligations—more than four times the contribution rates paid by many previous employees. 

These higher payroll deductions make it harder to recruit and retain qualified operators, contributing to increased turnover, higher hiring and training costs, and a workforce with fewer experienced operators.
Public safety is directly affected by workforce stability. Every time an experienced operator leaves, CTA must recruit and train a replacement. Newly hired operators perform an essential public service and receive professional training, but experience remains one of the most valuable tools for safely navigating Chicago's busiest streets, dense pedestrian traffic, construction zones, cyclists, tourists, and complex downtown intersections. High turnover means more operational hours are worked by less-experienced employees, increasing operational risk and the costs associated with training, property damage, service disruptions, workers' compensation claims, and accident investigations.

This proposal argues that pension policy should be evaluated not only as a retirement issue, but also as a public safety issue. Fair and sustainable employee contribution rates can strengthen retention, reduce avoidable operating costs, preserve institutional knowledge, and improve safety for passengers, pedestrians, motorists, cyclists, and CTA employees.

Making CTA Safe Again begins with restoring fairness to the pension system. A retirement system built on equal rules, transparency, and shared responsibility produces a more stable workforce, a stronger transit agency, and a safer Chicago.

When the Rules Change, Everyone Else Pays

A pension system works best when everyone contributes their fair share and receives benefits that the system was designed to support. When a small group is allowed to receive benefits far beyond what they contributed, the financial burden shifts to everyone else.

The CTA pension illustrates this concern. Under the assumptions used throughout this analysis, an average CTA employee (hired in 2026) works 25 years, contributes nearly $483,000 through payroll deductions, and earns an estimated lifetime benefit equal to about 4.9x times their own contributions. By contrast, using the figures cited in public reporting, former CTA Board Chair Valerie Jarrett contributed $11,132 through payroll deductions during approximately eight years of service and, if benefits continue through age 82 without COLA adjustments, would receive an estimated $1.14 million in pension payments—approximately 102.5X times her reported employee contributions.

Whether one views these differences as justified or not, pensions become more difficult to fund when benefit obligations substantially exceed the funding assumptions on which the plan was designed. As long-term liabilities grow faster than assets, the pension's funded status can deteriorate, placing pressure on employers, taxpayers, or current employees to make up the difference.

Over the past two decades, CTA employee pension contributions have increased by roughly 400%, significantly reducing take-home pay for frontline workers. Critics argue that rising payroll deductions have contributed to employee turnover, making it harder to recruit and retain experienced operators. A workforce with more new employees and fewer veteran operators can create operational challenges for a transit system responsible for safely moving hundreds of thousands of riders through some of Chicago's busiest streets every day.

Many CTA employees believe meaningful pension reform should preserve retirement security while restoring fairness, ensuring that the pension system rewards long-term service, treats all participants equitably, and remains financially sustainable for future generations.

Legislative Findings

The General Assembly finds that: 

1. Public Act 95-708 addressed future pension abuses but did not fully remedy the financial consequences of prior pension enhancements.

2. Current employee contribution rates create an unnecessary financial burden on workers who played no role in creating the pension's funding challenges.

3. High pension deductions discourage employee retention and contribute to elevated turnover among newly hired bus and rail operators.

4. Frequent turnover requires continual recruiting, hiring, and training, increasing operating costs while reducing the experience level of the workforce.

5. Industry experience consistently shows that the first year of operating a transit vehicle presents the greatest likelihood of preventable accidents due to limited operating experience.

6. Retaining experienced operators improves safety, customer service, operational reliability, and employee morale.

Proposed Amendments

Section 1. Public Safety, Workforce Retention, and Service Reliability

Legislative Findings

The General Assembly finds that the financial health of the Chicago Transit Authority Retirement Plan has a direct impact on public safety throughout the City of Chicago.

Unlike many public employers, the CTA operates one of the nation's largest urban transit systems, requiring employees to safely operate 40-foot and 60-foot buses through some of the most congested streets in the United States. Every day, bus operators interact with thousands of pedestrians, bicyclists, motorists, school children, emergency vehicles, and transit passengers in an environment that demands constant attention and sound judgment.

The General Assembly further finds that excessive employee pension contribution requirements contribute to employee turnover by reducing take-home pay and discouraging long-term careers with the CTA. High turnover requires the Authority to continually recruit, hire, and train new operators, resulting in a workforce with fewer years of operating experience.

Seniority and Route Assignments

CTA bus operators select work assignments through a seniority-based "run pick" process established under collective bargaining agreements.

As employees gain seniority, they generally obtain greater opportunities to select assignments that may include:

• Earlier morning shifts with lighter traffic volumes;

• Routes serving fewer high-density downtown corridors;

• Weekday schedules with fewer weekend assignments;

• Runs with fewer late-night operating hours; and

• Work assignments that may involve fewer interactions with heavy pedestrian and bicycle traffic.

Conversely, newly hired operators, who possess the least practical operating experience, are more frequently assigned to the remaining available work, which often includes:

• Congested downtown routes;

• Evening and overnight service;

• Weekend assignments;

• Routes with significant pedestrian activity;

• Corridors with substantial bicycle traffic; and

• High-volume passenger boarding locations.

As a result, the employees with the least operating experience are frequently required to perform the most operationally demanding assignments.

Public Safety Impact

A stable and experienced workforce is a critical component of public safety.

Reducing employee turnover increases the percentage of experienced operators serving Chicago neighborhoods, improves familiarity with complex traffic patterns, reduces training costs, enhances customer service, and strengthens overall system reliability.

Conversely, persistent turnover places a continual stream of newly trained operators into the most challenging operating environments, increasing operational risk and reducing the cumulative experience available throughout the transit system.

The General Assembly recognizes that retaining experienced operators benefits:

• CTA passengers;

• Pedestrians;

• Cyclists;

• Motorists;

• Emergency responders;

• CTA employees; and

• Taxpayers.

Accident Analysis and Transparency

The CTA shall annually publish a Public Safety and Workforce Experience Report identifying:

• Employee turnover rates;

• Average years of operator experience;

• New-hire retention after one, three, and five years;

• Preventable accident rates by years of operator experience;

• Preventable accident trends by route and operating division;

• Hiring and training costs attributable to employee turnover; and

• Recommendations to improve workforce retention and public safety.

The report should specifically evaluate accident frequency and operational risk on high-volume, high-congestion routes, including major downtown corridors such as Routes 22 (Clark), 36 (Broadway), and 151 (Sheridan), and identify whether workforce experience is a contributing factor to operational performance and safety outcomes.

Legislative Intent

The General Assembly declares that pension policy and public safety are inseparable.

When excessive pension deductions discourage career employment, employee turnover increases. Increased turnover results in a less experienced workforce, higher operating costs, more frequent recruiting and training, and greater exposure to operational risk on Chicago's busiest streets.

Restoring fairness to employee pension contributions is expected to improve workforce retention, increase the number of experienced operators serving the public, reduce avoidable operating costs, and enhance safety for everyone who lives in, works in, or visits the City of Chicago.

The long-term consequences of historical pension decisions extend beyond the retirement system. They affect public safety, workforce stability, taxpayer costs, and the quality and reliability of public transportation throughout the Chicago metropolitan area. Addressing these issues through equitable pension reform will help build a safer, more efficient, and more financially sustainable CTA for future generations.

Section 2. Fair Employee Contribution Cap

Employee pension contributions for CTA Retirement Plan participants shall not exceed 9% of pensionable salary, or the average employee contribution rate among the five largest Illinois public retirement systems, whichever is greater.

Future increases above this level shall require approval by the Illinois General Assembly.

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Section 3. Employment Transparency

The CTA shall disclose on every:

• Job posting;

• Conditional employment offer;

• Benefits summary; and

• New employee orientation packet;

the following information: 

• Required employee pension contribution;

• Required Health Care Trust contribution;

• Total retirement-related payroll deductions;

• CTA employer funding contribution;

• CTA funding ratio relative to employee contributions.

Applicants deserve complete transparency before accepting employment.

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Section 4. CTA Funding Ratio Disclosure

Whenever the CTA employer funding ratio differs from its standard funding policy under the Illinois Pension Code, the CTA shall provide a written public explanation identifying:

• Employee contribution percentage;

• Employer contribution percentage;

• The resulting CTA funding ratio;

• The statutory authority supporting the funding level; and

• The reason the funding ratio differs from historical funding practices.

This information shall be included in annual financial reports and made readily available to employees and prospective employees.

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Section 5. Annual Workforce & Safety Report

The CTA Retirement Plan and CTA shall jointly publish an annual report including:

• Employee contribution rates;

• Employer funding contributions;

• Pension funded ratio;

• Investment performance;

• Number of new hires;

• First-year employee retention;

• Five-year employee retention;

• Bus and rail operator vacancies;

• Annual hiring and training costs;

• Preventable accidents involving operators with less than one year of service.

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Section 6. Public Service Equity and Pension Fairness

The General Assembly finds that employees of the Chicago Transit Authority are public servants whose responsibilities are essential to the health, safety, mobility, and economic vitality of the State of Illinois. Every day, CTA employees safely transport hundreds of thousands of residents, visitors, students, seniors, and persons with disabilities throughout the City of Chicago.

Like Illinois teachers, firefighters, police officers, and other public employees, CTA workers dedicate their careers to serving the public. However, CTA employees are currently required to contribute 13.795% of pensionable earnings toward the CTA Retirement Plan, in addition to a 1% contribution to the Health Care Trust, resulting in a combined retirement-related payroll deduction of 14.795%.

The General Assembly further finds that these employee contribution rates are substantially higher than those required of many other Illinois public retirement systems and exceed the contribution rates required of employees at numerous comparable municipal transit agencies across the United States.

Excessive mandatory retirement contributions reduce take-home pay, discourage long-term employment, increase employee turnover, and make it more difficult for the CTA to recruit and retain experienced transit professionals. High turnover contributes to increased hiring and training costs, reduces operational efficiency, and negatively impacts public safety by increasing the proportion of newly hired operators on the system.

It is the policy of the State of Illinois that public employees performing comparable public service should bear a reasonably equitable share of retirement funding obligations. No generation of employees should be required to disproportionately finance pension liabilities resulting from decisions made prior to their employment.

Accordingly, employee pension contributions for CTA employees shall be limited to a fair and sustainable level, not to exceed 9% of pensionable earnings, unless otherwise authorized by an Act of the Illinois General Assembly.

The Illinois General Assembly further encourages the CTA Retirement Plan to annually publish a comparison of employee contribution rates with the five largest Illinois public retirement systems and with major municipal transit agencies nationwide. This report shall be submitted to the Governor and the General Assembly to promote transparency, accountability, and equitable treatment of public employees.

 

Expected Benefits

This amendment is expected to:

• Improve employee recruitment and retention.

• Reduce annual hiring and training expenses.

• Increase the percentage of experienced operators serving Chicago neighborhoods.

• Reduce preventable accidents associated with inexperienced operators.

• Increase transparency and accountability in pension funding.

• Restore fairness by limiting future employee contribution increases.

Based on lower turnover, fewer training cycles, reduced preventable accident costs, increased productivity, and improved workforce stability, CTA could reasonably realize cumulative operating savings approaching $100 million over the next ten years, while simultaneously improving service reliability and public safety.

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Conclusion

Illinois Public Act 95-708 represented an important step toward preventing future pension abuse. However, the financial consequences of earlier decisions continue to fall disproportionately on today's workforce.

Make CTA Safe Again proposes a forward-looking solution that restores fairness, strengthens transparency, improves employee retention, and enhances public safety without reducing earned pension benefits.

By capping employee pension contributions, requiring meaningful disclosure of CTA funding practices, and promoting a stable and experienced workforce, Illinois can improve the long-term sustainability of the CTA Retirement Plan while making Chicago's public transportation system safer for employees, passengers, motorists, cyclists, and pedestrians.

A stronger workforce creates a safer transit system. A fair pension creates a stronger workforce.

Assumptions for CTA Worker

• Starting wage: $43.00/hour
• 25 years of service
• 2,080 hours/year
• 3% annual raises
• Employee contribution: 14.795%
• Pension = 80% of average highest four years
• Retires at 65
• Lives until 82
• 17 years of pension payments (ages 65–82)

 

Under these assumptions:

• The average CTA worker contributes nearly half a million dollars over a 25-year career.

• The worker receives an estimated lifetime pension equal to about 4.9 times their own payroll contributions.

• Using the figures you supplied, the board-chair example receives an estimated 102.5 times the reported employee payroll contributions.

This revised comparison aligns with your earlier point that an illustrative CTA worker's benefit-to-contribution ratio is about 4.9×, while the board-chair example is over 100×, assuming benefits continue through age 82.

As before, this is an illustrative comparison of employee payroll contributions versus pension benefits. It does not account for employer contributions, investment returns, COLAs, or other plan provisions that affect the funding of defined-benefit pensions.

 

The opinions expressed by guest bloggers here or in Shop Talk newsletter are not necessarily the opinion or sanctioned policies and actions by Brother Eric Curtis Muhammad Basir, ATU Local 308 members, elected leadership or stewards. In the spirit of the First Amendment and the ATU Obligation, all CTA workers and supporters are welcome to submit content of any point-of-view for this blog. Real identities will be hidden upon request.