Every employee inevitably asks these 3 questions about the pension.
1. How much of my paycheck is being taken for retirement?
2. When can I start receiving my retirement money?
3. How much is my retirement allowance?
This article gives simplified answers to these questions and provides educational links.
How much of my paycheck is being taken for retirement?
13.795% of your paycheck is deducted for the pension and 1% is deducted for the Retiree Healthcare trust. This brings us to a combined total of 14.795%.
When can I start receiving my retirement money?
This depends on your age and years worked as a Full-time Permanent employee. (FTP). 1 of 4 outcomes will happen. These are listed below**
NO PENSION
You have worked under 10 years as an FTP employee, are under 65, and will receive a refund of your pension contributions if you leave CTA. These contributions will include 3% interest for each year.
DEFERRED PENSION:
You have worked at least 10 years as an FTP employee and decide to leave CTA. You will collect your pension when you're 65.
REDUCED PENSION:
You are age 55 and have worked at least 10 years as a FTP employee. You want to retire but will have your annual pension amount reduced by 5% for each year under 65.
UNREDUCED PENSION:
Age 64 with 25 years of service.
Age 65 with any years of service.
*This assumes you were hired after 1/18/08.
*The first year of FTP service can't be included in these calculations.
How much is my retirement allowance?
Use the formula shown in the screenshot below. This is taken directly from the pension website FAQ.
If this calculation causes you to worry, consider raising your highest 4 year earning average by working overtime. Remember to also account for social security when planning for retirement. I recommend making an account at SSA.gov to get specifics.
There is also CTA's retirement partner, Empower who offers supplemental retirement accounts like a 401k or a 457(b). Please reach out to David Fowler or Ed Duran if you have questions. They are very responsive and I enjoy using Empower's mobile app.
Resources:
2024 (most current) Retirement Plan Booklet
State of Illinois CTA Pension Audit 11/25/25
CTA Pension Understanding Retirement Benefits (Video Recording 1/9/2026)
Understanding Your CTA Pension: Ask the Experts (Video Recording 4/30/26)
2026 Retiree Healthcare Trust Enrollment Guide Presentation
Pension Questions Email (7/9/26)
Pension Questions Email (7/7/26)
Pension Questions Email (4/30/26)
Pension Questions Email (5/21/25)
Excellent information. Thanks for sharing.
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