The Retirement Plan for Chicago Transit Authority Employees is in “extremely poor financial condition” with a 34.4% funded ratio, according to the Illinois Auditor General William Holland’s report on northeastern Illinois mass transit agencies. The funded ratio was 39.4% in 2005 and 79.9% in 2000.
The actuarial value of the plan’s liabilities was $3.5 billion as of Jan. 1, 2007, up from $2.2 billion on Jan. 1, 2000, according to the report. The liability is projected to be $4 billion as of Jan. 1, 2009. The actuarial value of plan assets was $1.2 billion on Jan. 1, 2007, down from $1.7 billion in 2000, and assets are expected to fall to $800 million in 2009.
Unfunded actuarial liability was $2.2.billion in 2006, compared with $434.1 million in 2000. The CTA has also not been contributing at the rate recommended in actuarial reports: In 2006 the recommended rate was 50.3%, but the actual contribution rate was 34.4%.
The report said neither the employer nor employees made the level of contributions required to ensure continued adequate funding, but a state law now requires the CTA and retirement plan trustees to bring total assets up to 90% of liabilities by 2058.
John Kallianis, the plan’s executive director, did not return a call seeking comment.
