Pension Fund

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CTA Retiree Healthcare Trust

CTA Retiree Healthcare Trust is a public pension fund based in Chicago, US. It manages approximately $1.1 billion in assets across 15 funds, primarily focused...

CTA Retiree Healthcare Trust logo

CTA Retiree Healthcare Trust

CTA Retiree Healthcare Trust is a public pension fund based in Chicago, US. It manages approximately $1.1 billion in assets across 15 funds, primarily focused on North America.

General information

Firm type

Pension Fund

Location

Region

North America

Country

United States

City

Chicago

Corporate office

Chicago, IL, United States

Sector focus

Healthcare Services

Frequently asked questions

How is the trust governed?

The trust operates under a board of trustees. The specific appointment process for trustees is defined in the trust's governing documents, typically involving representation from labor and management. The board is responsible for setting investment policy, selecting money managers, and ensuring the trust can meet its actuarially determined benefit obligations.

What is the trust's investment approach?

The trust follows a conservative, liability-driven investment strategy. The primary objective is capital preservation with sufficient liquidity to pay retiree healthcare claims. Portfolios are heavily weighted toward fixed-income instruments, with limited exposure to equities or alternative assets.

Is CTA Retiree Healthcare Trust the same as the CTA pension fund?

No. The CTA Retiree Healthcare Trust is a separate legal entity from the CTA's main retirement pension plan. It exclusively manages assets set aside to cover healthcare benefits for retired Chicago Transit Authority employees and their dependents, not pension checks.

How is the trust's funding status determined?

The trust's funded status is calculated through periodic actuarial valuations that compare current assets to the projected cost of future healthcare claims for current and future eligible retirees. Contributions from the CTA, retiree premiums, and investment returns are evaluated against these long-term liabilities.

Does the trust accept investment from outside parties?

No. CTA Retiree Healthcare Trust is a single-employer plan. Its assets come solely from employer contributions, participant premiums, and investment earnings. It does not solicit or accept capital from external investors.

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