Lawsuit claims NEA overcharged members in annuities
A new lawsuit claims that the National Education Association (NEA) overcharged the very teachers it represented in annuities sold by Nationwide Life Insurance Company and the Security Benefit Group. According to a lawsuit filed in Washington State, the NEA actively endorsed the two companies and accepted millions in payments from the firms. The retirement plans that the NEA pushed on its teachers through its Members Benefits subsidiary were allegedly not in the best interests of the 3.2 million workers in the Association. The plaintiffs say that they were never informed about the payments the NEA was taking on behalf of the two companies. Derek W. Loeser, a lawyer at Keller Rohrback in Seattle, which represents the plaintiffs in the case, tells the New York Times that, "In endorsed plans, the union together with the insurance company are taking over the role that the plan sponsor plays." The claim also says the fees have "far exceeded" those of comparable annuities, adding that one plan had fees of over 10 percent.
All Headline News
By Matthew Borghese
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[Editor’s Note: COSA members may access an article below detailing the fiduciary duties of school board members and superintendents as to employee retirement plans and a suggested list of steps for selecting a plan provider.]
Inquiry & Analysis
By Forrest "Jack" Lance, Fred Reish, & Bruce Ashton
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