All Plan benefits are reported to the Internal Revenue Service. Generally speaking, benefits are taxable subject to certain exclusions. The taxable amount of your benefits for each calendar year will be reported to you annually.
Plan benefits are not subject to state income tax in Illinois but may be subject to state income tax in other states. You should contact a personal tax advisor if you have questions on tax matters.
Yes. All of the unions affiliated with the CTA have been involved in the decision-making process. The legislation passed in 2008 requires that three of the Trustees of the CTA Retiree Health Care Trust be union representatives. The changes are required by state legislation and are determined by the RHCT Board of Trustees, which includes union members.
Yes. A Survivorship Option can be elected by an employee who's Pension is based on age. A disability allowance can include Survivorship Option only if the pensioner has 25 or more years of pension service. The election of a Survivorship Option is an important decision which should be carefully considered by a married employee. The Pension Office will provide estimates of Survivorship Option amounts to employees to assist them in making a decision to accept or reject a Survivorship Option.
Yes. Deductions can be made for health insurance, union dues and federal income tax withholding. These deductions, however, are voluntary and must be authorized in writing by the pensioner.
Also, deductions will be made for child support, or for alimony or other property settlements upon divorce, if the Plan is served with a court order requiring such deductions.
Let's assume that an employee is married at retirement and wanted to provide for his or her spouse in the event of the employee's death. The employee was 62 years old at retirement and the employee's spouse was 60. The employee decided upon the "A" 1 / 2 option at the time of retirement.
The employee's pension without reduction for any Survivorship option had been calculated at $17,253.75 per year. A Pension Office employee would then consult actuarial tables for a pensioner aged 62, a spouse aged 60 and "A" 1 / 2 as the option choice. The factor (in this case, .8925) is multiplied by the unreduced pension amount as follows:
Annual
$17,259.75Unreduced Pension Amount
Actuarial
.8925Factor
Annual Pension
$15,398.97Reduced for Survivorship Option
This means that the employee would, upon retirement with an "A" 1 / 2 option, receive $15,398.97 per year for life. Upon the employee's death, the employee's spouse would receive one-half of this amount, $7,699.49 per year for the remainder of the spouse's life.
Although this example shows annual amounts, pension checks are paid monthly.
No. The plan specifically prohibits loans to employees. Also prohibited is withdrawal of any part of contributions to the Plan by an individual who remains eligible to participate in the Plan.
The normal retirement date shall be the first day of the month following the employee’s sixty-fifth (65th) birthday at which date the employee shall be 100% vested in his retirement allowance.
Options for retirement prior to age 65 depend on when the employee was first hired, as follows:
| Hire Date | When You're Eligible for Retirement Benefits |
| On or before 9/5/01 |
|
| After 9/5/01 but Before 1/18/08 |
|
| On or after 1/18/08 |
|
1The retirement allowance is reduced by 5% for each year or fraction of a year below age 65. (Plan Section 10.2)
Employees not represented by any union (exempt) may opt-out of the Plan before they become vested in the Plan. All other employees must participate.
The Retirement Plan for Chicago Transit Authority Employees, originally negotiated for members of Divisions 241 and 308 of the Amalgamated Association of Street, Electric Railway, and Motor Coach Employees of America, and has been extended to other eligible employees.
The purpose of the Plan is to provide retirement allowances in case of old age or disability for the eligible employees of the Chicago Transit Authority.
The one office of the Retirement Plan is located at
55 W. Monroe Street,
Suite 1950
Chicago, IL 60603
There are currently thirteen (13) full time staff and the office is, generally, split between the benefits and finance functions as follows:
There are staff members who spend time within each function, resulting in fractional time. The staff also has the responsibility for administering parts of the Retiree Health Care Trust.
There is an eleven (11) member Board of Trustees that administers the Plan. They are listed in the drop-down menu under The Retirement Plan.
The Plan has a total operating budget of approximately $11.5 million. Approximately 80% of that is related to investment fees and related activity. Detailed information on the annual operating costs of the Plan can be found in the Supplementary Information in our Audited Financial Statements, which are posted on the web site under our Annual Report.
Paul Sidrys acts as the FOIA Officer for the Retirement Plan for CTA Employees. All requests for public records should be made in writing and should be directed to him via email at foia@ctapension.com or via regular mail at:
55 W. Monroe Street,
Suite 1950
Chicago, IL 60603
Benefits are paid from the assets of the Retirement Plan for CTA Employees.
The Plan has assets of approximately $2.0 Billion as of January 1, 2021. The Plan is funded by investment earnings on its assets and by Employer and Employee contributions from the CTA and CTA employees.
Currently, the CTA contributes 26.647% of employee earnings and employees contribute 13.324% of earnings.
When a married employee decides to retire and the employee's retirement is based on age (or on disability with 25 or more years of creditable service) the employee may elect a Survivorship Option which provides a monthly lifetime benefit for his or her spouse after the employee's death. The employee's pension will be reduced, however, to pay for this additional benefit.
Begin by review the content on our website. Visit the Apply for Benefits section. When ready, visit our office at:
55 W. Monroe Street,
Suite 1950
Chicago, IL 60603
Need help finding our office? Click here.
Average of highest 4 years of earnings
Amount of pension service (Y/M)
Multiplier
Annual pension amount
Please note, the amount calculated using this formula may be reduced under certain circumstances.
Use the Pension Calculator to estimate your pension.
Once you have made the decision to retire, you should contact the Retirement Plan Office at (312) 441-9694. A Pension Representative will assist you in completing the necessary forms in order to retire. He or she will answer question you may have about the process.
Completed signed forms must be received in the Retirement Plan Office no later than the fourteenth (14th) of the month preceding your month of retirement.
While the fourteenth of the month is the latest an application can be accepted for retirement the following month, the Pension Office recommends that you do not wait until the last minute.
If you contact the Retirement Plan Office three to six months before you plan to retire, the Office can provide facts about your retirement, give you assistance if you need it, and be sure that all paperwork is complete.
The calculation is the same as for an age pension except that there is no reduction for receiving a disability allowance before age 65 and there is a minimum monthly benefit amount of $400.00.
The employee's earnings and service records are frozen at the time the employee's employment terminates. When the employee reaches age 65, the employee will then be eligible for a pension which will be calculated using earning and service the employee had at termination of employment. Also, the pension formula to be used will be the one which is in effect when the employee's employment terminated.
When a married, active employee who was eligible to retire dies, the Pre-Retirement Survivorship Option is calculated as if the employee had retired on the first of the month in which the employee died with an "A" 1/2 Survivorship Option. The employee's spouse is then paid 1/2 of what the employee's reduced pension would have been for the remainder of the spouse's life.
That depends on couple of factors:
Please visit the Apply for Benefits section to see if you qualify for the retirement benefits.
The Retiree Health Care Trust (RHCT) was created by legislation passed by the Illinois General Assembly and signed by the Governor in January 2008. Please refer to our website, https://ctaretirement.org/healthcare-trust/, for details on the legislation and its requirements.
An employee's monthly benefit will be actuarially reduced by taking into consideration the ages of the pensioner and spouse at retirement along with the type of option elected. For any given ages of a pensioner and spouse, the reduction is larger for "B" options than "A" options.
Also, the reduction is greater if the elected fraction is all, less if it is ⅔ and still less if it is ½.
An employee who has reached the normal retirement date (first day of the month following 65th birthday) may retire with the full retirement allowance provided in Section 8 of the Plan (9.1 and 9.2)
Options for retirement prior to age 65 depend on when the employee was first hired, as follows:
| Hire Date | When You're Eligible for Retirement Benefits |
| On or before 9/5/01 |
|
| After 9/5/01 but Before 1/18/08 |
|
| On or after 1/18/08 |
|
1The retirement allowance is reduced by 5% for each year or fraction of a year below age 65. (Plan Section 10.2)
Yes. A pension - age or disability - cannot be more than 70.0% of the average of the highest 4 years of earnings.
In the event of death of the retiree and/or surviving spouse, the family members should do the following:
| Age When You Retired from the CTA | Eligibility Credits | When am I Eligible for Health Coverage from the RHCT? |
|---|---|---|
| Age 65 or Older |
20 Years or More 10-19 Years Less than 10 Years |
Immediately at Retirement Immediately at Retirement Not Eligible for Health Coverage. |
| Ages 55-64 |
20 Years or More 10-19 Years Less than 10 Years |
Immediately at Retirement Eligible at Age 65 if Retired from the CTA. Not Eligible for Health Coverage. |
| Less Than Age 55 |
20 Years or More 10-19 Years Less than 10 Years |
Age 55 Eligible at Age 65 Not Eligible for Health Coverage. |
Certain part-time or temporary employees, who do not meet the requirements for a pension, may be eligible for health care coverage.
If you opted-out of the CTA Pension, or received a refund of your pension contributions, you are not eligible for health care benefits.
You may be eligible for immediate health care coverage if you receive a disability allowance, regardless of age.
If you are not eligible for Health Coverage from the RHCT, you are eligible for an HRA at age 65.
The Plan continues to offer medical, prescription drug, and dental benefits for CTA retirees/disabled pensioners, surviving spouses, and dependents. Refer to the CTA Retiree Health Care Plan Enrollment Guide for more details.
If an employee leaves the Authority and has less than 10 years of creditable service, the employee can receive a refund of any pension contributions the employee may have made along with interest. There is never a refund of contributions made by the Authority.
If an employee becomes disabled from performing his or her duties and:
There are also other conditions things that would prohibit the Plan from paying a disability allowance.
If an active employee was married and was eligible to retire (i.e. had 25 years of creditable service, or was 55 or older with at least 3 years of creditable service) when the employee died, the employee's spouse would be entitled to receive a monthly benefit for life. This is called a Pre-Retirement Survivorship Option and is payable automatically unless the employee specifically requested, in writing, that it not be paid.
If the employee was either not married or was not eligible for retirement at death, the employee's designated beneficiary would receive a refund of contributions the employee made to the Plan along with interest. There is never a refund of contributions made by the Authority.
If an employee who is not eligible to retire but who has at least 10 years of creditable service leaves the Authority the employee may vest. That is, the employee may choose to receive a monthly pension beginning when the employee reaches age 65 in lieu of a refund of contributions and interest.
The primary purpose of the Plan is to provide income to eligible employees of the Chicago Transit Authority when they retire because of age, service or disability.
Health insurance coverage available to eligible pensioners and their dependents.
Currently, the RHCT provides access to a Blue Cross Blue Shield PPO and a Blue Cross Blue Shield HMO, for those not yet eligible for Medicare.
Once a pensioner is entitled to Medicare, the RHCT provides access to a Humana Medicare Advantage Plan. Humana offers a Medicare Advantage PPO or HMO.
Basically there are two kinds - called "A" and "B" options. Pensions with "A" options are reduced for the life of the pensioner. At the pensioner's death, one of three elected fractions (all, ⅔ or ½) of the reduced pension will be paid to the spouse for life.
The "B" option works the same way with one exception. If the spouse dies before the pensioner, the monthly pension amount will revert back to the amount which would have been paid had no option been elected.
The Board of Trustees of the Retiree Healthcare Trust determines what the premiums will be from year to year. They are responsible for creating a plan design and setting the premiums for retirees, dependents, survivors, etc.
Generally, any changes to benefits and premiums will occur at January 1st of the year following the Fall Open Enrollment Process.
In general, you are an eligible Retirement Plan participant if you are a full-time permanent employee of the CTA who has completed 12 months of continuous service.
If you are a retiree or surviving spouse, you can elect either single coverage or family coverage. For retirees, family coverage includes your spouse and/or your dependent children. For surviving spouses, family coverage only includes dependent children. You cannot elect coverage for your spouse or your dependent children in the medical plan if you do not enroll in the plan yourself. You must enroll ALL family members in the same plan.
Refer to the CTA Retiree Health Care Plan Enrollment Guide for more details.
Yes. Each eligible person (retiree, spouse, or dependent) may opt out of coverage or drop coverage and return to the medical plan once after first becoming eligible. If you or your surviving spouse opts out of medical coverage, your dependents will not be eligible for coverage under the medical plan. However, you can enroll your dependents in the dental plan without enrolling yourself.
If you opt out of medical coverage and wish to return to the medical plan, you must provide documentation indicating that you were covered under another medical plan immediately prior to the date you want to be covered under this Plan.
You can keep your children on your plan through age 25 (or through age 29 if they are dependent military veterans), as long as they remain your eligible dependents as defined by the Plan.
Yes. Your eligible surviving spouse is entitled to health care coverage. A spouse receiving a Survivorship Option will have premiums deducted from the monthly benefit if his/her pension is sufficient to cover the premium cost. If it’s not, or if your surviving spouse does not receive a Survivorship Option, he/she will have to pay the Retiree Health Care Trust directly for his/her coverage. Refer to the CTA Retiree Health Care Plan Enrollment Guide for details.
Yes. If you would like to change your current medical plan selection to ensure you receive the health care coverage you want for the period January 1, 2025 through December 31, 2025, you should enroll for benefits by November 19, 2024.
The CTA Retirement Office generally hosts an open enrollment meeting in the early part of November.
During each meeting, you will hear a brief presentation on the changes to the health care plan and will be able to ask questions. You will then have a chance to visit with representatives from the CTA Retirement Office and various service providers to gather more information and follow up with specific questions.
Once you enroll, your coverage will be effective for the entire calendar year. During this time, you or your dependents will be allowed to change your medical elections only if you have a qualifying event. Refer to the CTA Retiree Health Care Plan Enrollment Guide for further information regarding qualifying events.
In general, you may cover your spouse and children through age 25 (or through age 29 if they are dependent military veterans) who are dependent on you for financial support. Refer to the CTA Retiree Health Care Plan Enrollment Guide for more details.
The CTA Retiree Health Care Trust has contracted with Group Administrators, Ltd. to administer your health care benefits. You can reach them at 1-866-997-3821 or by sending an email to rhct@groupadministrators.com. The CTA Retirement Office will continue to handle pension benefits. You can reach the CTA Retirement Office at 1-866-441-9694 or 1-312-441-9694 or via email at help@ctaretirement.org.
You have three medical plan options from which to choose and we need to know which option you elect and who you are planning to cover. Refer to the CTA Retiree Health Care Plan Enrollment Guide for things to consider when making your decision.
Documentation is required to ensure the Plan covers only those who are eligible to receive benefits. For each new dependent you are covering, you must submit documentation as required by the Plan (originals are not required; please send copies). Documentation may include:
Please refer to the CTA Retiree Health Care Plan Enrollment Guide and your enrollment form for details.
The primary purpose of the Retiree Health Care Trust to provide health care benefits for CTA retirees, their dependents and survivors.
The one office of the Retiree Health Care Trust is located at
55 W. Monroe Street,
Suite 1950
Chicago, IL 60603
There are currently thirteen (13) full time staff and the office is, generally, split between the benefits and finance functions as follows:
There are staff members who spend time within each function, resulting in fractional time. The staff also has the responsibility for administering parts of the Retiree Health Care Trust.
There is a seven (7) member Board of Trustees that administers the Trust. They are listed in the drop-down menu under The Retiree Health Care Plan.
The Plan has a total operating budget of approximately $11.5 million. Approximately 80% of that is related to investment fees and related activity. Detailed information on the annual operating costs of the Plan can be found in the Supplementary Information in our Audited Financial Statements, which are posted on the web site under our Annual Report.
Paul Sidrys acts as the FOIA Officer for the Retiree Health Care Trust. All requests for public records should be made in writing and should be directed to him via email at foia@ctapension.com or via regular mail at:
55 W. Monroe Street,
Suite 1950
Chicago, IL 60603
A retiree’s monthly healthcare premium depends on how much premium services he/she accrues with the CTA before retiring. The longer the retiree’s premium service, the lower the monthly premium costs will be.
Please refer to page 10 in the RHCT Plan Summary under "Monthly Premiums" to see how the calculations of premium service are made for hourly and salaried employees.
There are four factors you’ll need to consider determining what your monthly premium will be:
Refer to the CTA Retiree Health Care Plan Enrollment Guide, to determine what your monthly contribution for medical coverage will be.
As of July 1, 2009, as the result of legislation passed by the Illinois General Assembly and signed by the Governor, every individual who receives coverage under the Plan will have to pay a portion of the premium cost. Please refer to our website, www.ctaretirement.org, for details on the legislation and its requirements.
Refer to the CTA Retiree Health Care Plan Enrollment Guide, to determine what your monthly premium amount will be for each type of plan (PPO or HMO). You can then determine whether your monthly pension will be large enough to cover the premium amount. If it’s not, you will receive a monthly bill, beginning with your confirmation statement, and you will be required to pay for your coverage directly to the Retiree Health Care Trust.
If you are eligible for Medicare, the Retiree Health Care Plan will pay claims as if you are covered under Medicare, even if you have not enrolled in Medicare. If you are eligible for but not enrolled in Medicare, you will be responsible for paying Medicare’s portion of the claim. For that reason, it is imperative you enroll for Medicare now if you are already eligible. If you are not yet eligible, be sure to enroll when you first become so.
The health care rates for individuals who are enrolled in Medicare are significantly lower than the non-Medicare rates, so you may find that your total premium expense will be less once you enroll in Medicare.
If you are not yet eligible for Medicare, you will have to contact Medicare directly to enroll in the future. Group Administrators will send out a letter two months prior to the month in which you turn 65 to remind you that you need to enroll for Medicare.
No. You do not have to enroll for medical coverage in order to receive dental coverage.
The benefit services, payment levels, and costs for dental coverage are not changing. Refer to the CTA Retiree Health Care Plan Enrollment Guide for more details.
MetLife currently administers the dental plan.