Chicago Public Pensions: CTPF, MEABF, LABF, PABF & FABF

• CTPF, Chicago Teachers' Pension Fund covers CPS teachers, certified staff, and administrators. It is separate from the statewide TRS.
• MEABF, Municipal Employees' Annuity and Benefit Fund covers most non-uniformed City of Chicago and Board of Education non-teacher employees.
• LABF, Laborers' Annuity and Benefit Fund covers laborers employed by the City and the Board of Education.
• PABF, Policemen's Annuity and Benefit Fund covers sworn Chicago police officers.
• FABF, Firemen's Annuity and Benefit Fund covers sworn Chicago firefighters and paramedics.

Each fund has Tier 1 (generally hired before Jan 1, 2011) and Tier 2 rules with different retirement ages, formulas, and COLAs. Confirm your tier and your service credit in writing before you set a retirement date.

CPS teachers generally do not pay into Social Security on their CPS earnings. That means:

• Your CTPF pension is your primary retirement income.
• Any Social Security you earned from other jobs was historically reduced by the Windfall Elimination Provision, and spousal/survivor benefits by the Government Pension Offset.
• The Social Security Fairness Act (January 2025) repealed WEP and GPO. Many CPS retirees are now eligible for higher benefits and retroactive payments. File or refile with Social Security to confirm.

The same rules generally apply to Chicago police and fire retirees.

Retiree health coverage is one of the biggest financial variables for Chicago retirees:

• CTPF offers a retiree health insurance program with a subsidy that varies by years of service. Coordinate with Medicare at 65.
• City retirees (MEABF, LABF, PABF, FABF), the City's retiree health subsidy has been the subject of litigation and change; verify current eligibility and cost with your fund and the City's Benefits Management Office.
• At age 65, Medicare becomes primary for most retirees. Missing Medicare enrollment windows can trigger lifetime penalties. See the Medicare guide.

Chicago funds provide surviving-spouse annuities, but the amount, eligibility, and any reversionary options differ by fund and tier. Common planning issues:

• Marriage date rules, some funds require marriage before retirement or for a set period before death.
• Reciprocal service, if you worked under more than one Illinois public system (e.g., IMRF then MEABF), the Illinois Retirement Systems Reciprocal Act may let you combine service. This is often overlooked.
• Ex-spouse QILDROs, divorce decrees that divide public pensions in Illinois use a special order called a QILDRO. Make sure yours is on file before retirement.

Get a written benefit estimate from your fund covering single-life vs joint-and-survivor options before you sign retirement paperwork.

Pension income counts as income for Medicaid nursing home and Supportive Living waivers, and for VA Aid & Attendance. If one spouse enters a nursing home while the other stays home, Illinois spousal impoverishment rules protect a portion of the pension for the community spouse. Plan these choices with an elder law attorney before a crisis. See Medicaid, Aid & Attendance, and Long-Term Care Insurance.