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Comments from an AP history
and government teacher in Raleigh, NC.
e-mail betsynewmark AT gmail.com
Commissions earned from selling items through Amazon will go towards buying materials for my classes. Thank you.
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Wednesday, April 26, 2006
Teachers' Unions are Cheating Their Members
Tom Elia has a link and analysis to a story in the LA Times about how the NEA recommends certain retirement funds to their members. They then receive premiums from the insurance companies totally millions of dollars. It is just unfortunate that the policies they recommend are bad deals financially for the teachers making the investments. But, I'm sure it's all worth it to the teachers to know that, at least, their union is getting money for their ever-helpful conferences that do so much, I'm sure, to ease the job of teachers. You know those conventions where they come out with all sorts of political statements and all sorts of issues that have little to do with educating children. As the Times reports,The National Education Assn., the largest teachers union in the country with 2.7 million members, collected nearly $50 million in royalties in 2004 on the sale of annuities, life insurance and other financial products it endorses.It seems that the surest way to know what a bad investment is would be to follow the recommendation of the teachers' unions.
Teachers unions across the country — including those in Las Vegas and San Diego and statewide teacher associations in Pennsylvania, Michigan and Oregon — have struck their own endorsement deals.
Unions in Dallas, Miami, Phoenix, Seattle and Atlanta, among others, refer members to products approved by the NEA and typically receive a share of endorsement revenue in return.
Many teachers say they presume an endorsement means their union has used its clout to get the best price, as unions do on products from eyeglasses to automobiles. But when it comes to retirement accounts, union backing is often a sign that the product will cost more, not less.Unions do more than simply give companies their blessing. Some help market and sell endorsed products. They tout investment firms on their websites and provide direct links to sites where teachers can sign up to buy annuities. Endorsed providers also enjoy special access to schools and teacher conferences where they can pitch their products.Read the rest of Elia's post and the LA Times article. If you're a teacher, I'd recommend doublechecking any investments that came from the endorsement of your union.
Teachers generally are not aware that unions are paid for their endorsements, directly or indirectly. Such deals usually are not mentioned on union websites or in brochures describing the favored investments.
"This is a national problem," said Dan Otter, a former Maryland teacher and founder of 403bwise.com, which offers tips on finding low-cost retirement plans.
"It's a rare school district that gives teachers access to quality choices. In most cases, they just turn a blind eye to the problems. And it's the rare union that's advocating for better 403(b) investments for its members," Otter said. "In many cases, the 403(b) is a source of profit for unions."
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Tom Elia has a link and analysis to a story in the LA Times about how the NEA recommends certain retirement funds to their members. They then receive premiums from the insurance companies totally millions of dollars. It is just unfortunate that the policies they recommend are bad deals financially for the teachers making the investments. But, I'm sure it's all worth it to the teachers to know that, at least, their union is getting money for their ever-helpful conferences that do so much, I'm sure, to ease the job of teachers. You know those conventions where they come out with all sorts of political statements and all sorts of issues that have little to do with educating children. As the Times reports,
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Tom Elia has a link and analysis to a story in the LA Times about how the NEA recommends certain retirement funds to their members. They then receive premiums from the insurance companies totally millions of dollars. It is just unfortunate that the policies they recommend are bad deals financially for the teachers making the investments. But, I'm sure it's all worth it to the teachers to know that, at least, their union is getting money for their ever-helpful conferences that do so much, I'm sure, to ease the job of teachers. You know those conventions where they come out with all sorts of political statements and all sorts of issues that have little to do with educating children. As the Times reports,
The National Education Assn., the largest teachers union in the country with 2.7 million members, collected nearly $50 million in royalties in 2004 on the sale of annuities, life insurance and other financial products it endorses.It seems that the surest way to know what a bad investment is would be to follow the recommendation of the teachers' unions.
Teachers unions across the country — including those in Las Vegas and San Diego and statewide teacher associations in Pennsylvania, Michigan and Oregon — have struck their own endorsement deals.
Unions in Dallas, Miami, Phoenix, Seattle and Atlanta, among others, refer members to products approved by the NEA and typically receive a share of endorsement revenue in return.
Many teachers say they presume an endorsement means their union has used its clout to get the best price, as unions do on products from eyeglasses to automobiles. But when it comes to retirement accounts, union backing is often a sign that the product will cost more, not less.
Unions do more than simply give companies their blessing. Some help market and sell endorsed products. They tout investment firms on their websites and provide direct links to sites where teachers can sign up to buy annuities. Endorsed providers also enjoy special access to schools and teacher conferences where they can pitch their products.Read the rest of Elia's post and the LA Times article. If you're a teacher, I'd recommend doublechecking any investments that came from the endorsement of your union.
Teachers generally are not aware that unions are paid for their endorsements, directly or indirectly. Such deals usually are not mentioned on union websites or in brochures describing the favored investments.
"This is a national problem," said Dan Otter, a former Maryland teacher and founder of 403bwise.com, which offers tips on finding low-cost retirement plans.
"It's a rare school district that gives teachers access to quality choices. In most cases, they just turn a blind eye to the problems. And it's the rare union that's advocating for better 403(b) investments for its members," Otter said. "In many cases, the 403(b) is a source of profit for unions."
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