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Teachers Pension Fund Attacks Largest Charter Operator

  • 09-17-2013
The Chicago Teachers' Pension Fund on Monday complained that the United Neighborhood Organization had failed to make contributions for more than 90 certified teachers in its charter schools, but UNO insisted that the actual number was less than a third of that.þþUNO, which runs the largest network of privately run charter schools with 700 teachers and administrators, has come under state scrutiny for hiring a contractor related to one of the group's top executives.þþThe teachers pension fund announced the results of an audit of the organization on the same day the network opened a new school, UNO Soccer Academy High School, whose construction was halted along with other new UNO campuses after Gov. Pat Quinn temporarily blocked a $98 million construction grant for the projects. Eventually, money was released after the Latino organization promised to put in place rules outlawing nepotism and conflicts of interest and added several new members to its boards. But two of those members recently resigned.þþJay Rehak, president of the pension fund's board of trustees, said a closer review of UNO came as part of a larger study of charters and their contributions to the pension fund.þþÿWe're legally required to collect every dollar we can,ÿ Rehak said. ÿWe discovered through our internal auditor that there (was) underreporting of employees by charter school systems. Underreporting can be in the financial interest of an employer. It's important that charter schools be held accountable for certified teachers who should be in the pension fund. If a teacher comes to the fund in 20 years and says, 'Where's my pension?' the fund has to pay them, but we haven't gotten the money from that employee or the employer.ÿþþHe added that if for some reason a charter goes bankrupt, CPS would then be ÿon the hook to pay the unfunded liability.ÿ The fund is currently reviewing pension contributions for another large charter operator, Noble Network of Charter Schools.þþOn Monday, UNO officials questioned the fund's analysis, saying they've been asking for months whether the agency is counting substitute or part-time teachers for whom UNO says it is not required to take out pension contributions. They say that by their own calculations they've underreported fewer than 30 certified teachers because of errors such as not knowing a teacher is now certified.þþÿTheir numbers are wrong because they're counting people that just don't qualify,ÿ said UNO's chief executive officer, Juan Rangel. ÿWe've made frequent attempts to answer their questions and get our own answered to no avail. We feel suspicious that they're releasing this on the same day that our newest school is being opened. If they're truly interested in working with us to address this, then work with our staff.ÿ

Source: Chicago Tribune