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Teachers’ Unions Not Looking Out for Teachers’ Best Interests
By JLP | April 26, 2006
Sadly, this story in the Baltimore Sun doesn’t surprise me. According to the article, New York State United Teachers, for instance, receives $3 million a year from ING Group for encouraging its 525,000 members to invest in an annuity sold by the Dutch insurance giant. I have always felt that the way 403(b) plans are handled is crazy but this is just plain wrong. How come Eliot Spitzer isn’t going after the unions? Hmmm… I wonder why? Perhaps it is because the teacher’s union is heavily Democrat and he is a Democrat seeking the governor’s office. He’s too busy chasing down H&R Block for charging $15 per year for an IRA.
Surely we can do better for our teachers.
If you are a teacher, you need to look at your current 403(b) plan. If the fees inside your plan are high, you need to see if there is an alternative plan available. BEFORE you make any changes, find out if there is a penalty for moving your money. If you are in an annuity, chances are pretty good that moving your money will result in a penalty or deferred sales charge. If you aren’t sure, check with a fee-only financial planner or call your plan provider.
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