Investigation into potential claims against the National Education Association ('NEA') Valuebuilder 403(b) variable annuity plan. The plan, which is sold by an insurance company called Security Benefit, is the only retirement program endorsed by the NEA. In exchange for the endorsement, Security Benefit provides compensation to the NEA. Does the the NEA endorsed the program because of the payments, as opposed to a prudent evaluation of whether the plan is in the best interests of NEA members? This is the question being investigated.
A 403(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. A common 403(b) plan investment option is a variable annuity. A variable annuity is an annuity plan that enables participants to direct their salary deferral into certain specific mutual funds. As many commentators have noted, 403(b) annuity plans often charge excessive fees that substantially diminish participants' retirement savings. In addition, 403(b) providers often choose mutual funds for their plans based on revenue sharing deals with the mutual fund companies, as opposed to a prudent evaluation of the merits of the fund option. Recent articles have drawn attention to the fees charged by the NEA Valuebuilder plan and have questioned the NEA's practices.
Name (Stock Symbol)
National Education Association
National Education Association is an organization designed to promote issues for teachers.
Security Benefit is an insurance company, asset manager and investment advisor.
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