Posted by
Playful Walrus on Tuesday, July 17, 2007 12:17:09 PM
Kathy M. Kristof of the
Los Angeles Times brings us this shocking story of a political - uh, I mean labor union taking advantage of members.
The National Education Assn. faces a federal lawsuit accusing it of breaching its duty to members by recommending a high-cost retirement plan in exchange for millions of dollars from the managers of the plan.
The suit, which seeks class-action status, was filed by two of the 57,000 schoolteachers who the suit says invested $1 billion in a so-called 403(b) retirement plan endorsed by the NEA.
The suit says the teachers were lured to invest in the plan by assurances that the NEA "conducted an extensive review of numerous financial services companies to find the best provider." But the NEA's member benefit unit "received millions of dollars … as the quid pro quo for NEA's exclusive endorsement," the filing says.
The money received by the NEA ultimately came from its members' pockets, according to the suit, through "excessive" fees charged by plan providers Nationwide Life Insurance Co. and Security Benefit Life Insurance Co. The fees reduced the returns earned by the teachers who invested in the plan, the suit claims.
C’mon! Everyone knows the NEA is there to help teachers so that they can help students. Next thing you know, this right-wing rag known as the
Los Angeles Times will print allegations that the NEA uses member dues to support Democrats and Leftist legislation almost as if it was an extension of the Democrat Party.
Puhleez!