In the fall of 2021 as part of its regular audit process, the Retirement Plan for CTA Employees discovered that sums of money had been withdrawn over a period of 20 months from the Plan’s assets without proper authorization. The sums were designated to provide benefits to CTA employees including death benefits, refunds of contributions, retirement benefits and health benefits. The Plan immediately investigated the matter and determined that Ayanna Nesbitt, an employee of the Retirement Plan Office had withdrawn the funds in a fraudulent manner.
The Plan terminated Ms. Nesbitt as an employee. It recovered a substantial amount of the improperly withdrawn funds. It also reported the wrongdoing to the office of the U.S. Attorney, which conducted an investigation, and caused Ms. Nesbitt to be indicted. The indictment alleges five counts of wire fraud.
No benefits were denied to eligible CTA employees, their families, or their designated beneficiaries because of this improper withdrawal. Nor was, or will, the Plan’s ability to pay benefits be curtailed. The fraudulent withdrawals have not had a material impact on the overall funding level and the Plan is working to recover the remainder of the funds owed.
The Plan Office will continue to cooperate with the Office of the U.S. Attorney.
Paul Sidrys
Interim Executive Director
RP for CTA Employees & RHCT