The Chicago Teachers Union (CTU) has resisted making its financial audits public, and we are starting to learn why. The union recently produced audits going back to 2020, and the records show that its finances haven’t always received a clean slate by its official independent auditor.

Op-ed by Sheila Weinberg, "The Chicago Tribune recently exposed disturbing oversight failures in Minnesota’s federally funded programs, problems that have led to fraud investigations and federal payment freezes. But this is not unique to Minnesota. Illinois’s most recent Single Audit reveals similar systemic breakdowns in federal program oversight, showing that federal taxpayers’ money is at risk far beyond one state."

State pension plans, particularly those for public employees like teachers, firefighters, and government workers, are subject to various federal regulations, including IRS rules and other federal laws, to ensure compliance with tax, nondiscrimination, and retirement benefit standards. These rules apply because state pensions often receive tax advantages (e.g., tax-deferred contributions) and may opt out of Social Security; therefore, they must align with federal standards to maintain their tax-qualified status or avoid penalties. Below are detailed examples of how state pensions fall under IRS rules and other federal regulations, with a focus on key provisions and their implications.