How does this setup school districts for a hit? If ISTA health goes under, wouldn’t the individuals be in for a hit and not the district?

Ahhh… the new and improved Ed Sullivan Show. Hopefully he’ll be showing a few folks the doors.

In some fairness to ISTA here, even Warren Buffett took a big hit on his investments. And he’s the guru of all gurus on investments. We don’t know what percent of the ISTA portfolio was in questionable investments.

Alano, as a former ISTA member, ISTA really screwed up here. Warren Buffett is responsible first to himself. ISTA is reponsible first to its members.

We start with, “Ask not what the Colts can do for you, but what you can do for the Colts”, Chrysler workers trump bondholders and other equity investors like the state of Indiana- now this. Are you ready to invest YOUR capital in something that is union labor-intensive and suffering losses in this economy? The Fellini movie continues…..

“Let’s see here. ISTA made investments that should never have been made in the first, jeopardizing the health insurance plans of thousands of members and setting up school districts to be on the hook and have major tax increases to cover the benefits and the economy is to blame.”

That’s about the same game that Richard Mourdock was playing yesterday. Why would any responsible pension fund manager (obviously not Mourdock or ISTA) invest millions into Chrysler in August 2008. By that point, Chrysler LLC’s bond rating was already junk. To make matters worse, Mourdock went public with his boner and spent who knows how many more hundreds of thousands of retiree’s dollars for the services of a high-priced New York law firm to try to fight the inevitable.

Hummm. Abdul are you talking about the State Treasure, the ISTA or both?

Geeeze. You ought to examine some of the 401 plans in the Perry Township School System…junior ponzi people taking money from now almost broke retirees.

Jacob, I’m not saying we let ISTA off the hook completely here. My core point is that ALL investment portfolios took a big hit, no matter how conservatively the portfolio (even Warren Buffett). ISTA may have made some bad investment decisions, but if they were a very small part of their portfolio, they may have been immaterial to the total loss. I’m sure your investment accounts (like mine) have taken big hits, but that doesn’t make it your FAULT.

Abdul, You seem to be foaming at the mouth at the prospect of ISTA crumbling. First, there is a difference between ISTA and ISTRF. Both have had hits on their portfolios…as I assume you have had in your personal one. Secondly, there are many divisions to ISTA and the one under investigation is the ISTA Insurance Trust. All other divisions are on sound financial ground. The investigation is taking place so it is too early to point fingers or for indictments but Morgan Stanley does not look good in this. 4000 trades in less than one year sure seems like churning to me……..time will tell. In the meantime, ISTA is here representing teachers, students and parents in an attempt to improve our public school system.

After all these years, our schools should be excellent; rather than a monument to failure…

“All other divisions are on sound financial ground.”

Nonsense.

http://www.eiaonline.com/intercepts/2009/05/20/eia-exclusive-indiana-nea-affiliate-has-other-financial-troubles/

and

http://www.eiaonline.com/intercepts/2009/05/21/indiana-state-teachers-association-is-more-than-42-million-in-the-red/

ISTA has done lots of good things for education and for educators–regardless of whatever whoever says. Admit to be a member for almost 40 years (now retired) and was there in the beginning of efforts to change education. Organization like many others became more liberal than my philosophy went, but as to investments expect major mistakes were made and likely by a board putting too much faith in the professionals. But then so did most investment funds that ended up being pushed for high return without keeping to the principle that needed to protect the fund. Personally lost over 50% of my personal investment and I am a buy and hold person and never play the trading game. My teacher retirement fund stayed in the “guaranteed fund” and never moved any to a high performance fund even though the push to do so was made by my financial advisors (non teacher fund persons.) Several major foundations in Indiana suffered the same ailment of going for the gold. Not excusing the ISTA board on the matter but been on finance boards and know the presentations the professionals can make to a group of people with good intentions but short on all the expertise thrown at them.

I’m a little tired at all the glee surrounding the ISTA Trust’s problems. It does demonstrate a lot of pent-up venom towards ISTA, which, unfortunately, they may have earned.

Abdul, I don’t know how you can call this “spin.” If I were a member, and did not get an explanatory letter like this, I’d be pissed. If yo think THIS is spin, you need to get out into the real world of spin. Like the Bush-Cheney-Hillary Clinton kind of spin.

Why the joy at the problems of a trust fund?

TA,

I’ve been doing some checking and things look worse at ISTA than they first appear.

“and was there in the beginning of efforts to change education.”
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Yeah…we all know how good that worked.

Robert–do you know/remember the state of things in the early 60s and 70s? Particularly as to educational funding, curriculum, teacher security issues, etc.? It’s easy to bash and blame.

The Indiana Democrats and their Obamanation just stole $5,000,000 plus from teachers and police pensions. Which congresspeople did this from Indiana?

What????

Page A12 of Thursday’s star reporting on event of Monday. Also covered in editorial in WSJ. It seems Republicans Atterholt and Mourdock are doing more for retired teachers than ISTA ever did.

Again, major confusing of reality—the ISTA funds in trouble are NOT anything to do with the general teacher retirement funds (as mandated by the state whereby teachers are required to donate a percentage of their pay into)and the programs being offered by ISTA. As a retired teacher I had no funds at risk in the program being investigated/cussed/discussed.
Perhaps every mismovement by any group is rightfully subject to examination and debate but let there be honesty and informed discussion.

Jack: Pascal never let the truth get in the way of a good right-wing conspiracy theory.

Feed the monster. They do it daily. The World According to Hannity.

Never said it was an ISTA fund just that teachers were being cheated. ISTA, like educators in general discussing their performance tend to lie as a default position. ISTA quotes in the Indy Star on the matter are typical. In a memo dated April 28th Mr. Darko (who has been silent since) wrote to fools urging them to stay in the long term disability ISTA plan saying it has been, “…one of the least expensive, best administered long term disability products in the country”.
Cheating Indiana teachers out of millions of dollars is a matter of public record. Documented, citations provided for those who can read(but, who obviously didn’t). Page A12 of the Indy star of 5/15 speaks to ISTA. The editorials speak to the thieves.

Page A12 of Thursday’s star reporting on event of Monday. Also covered in editorial in WSJ. It seems Republicans Atterholt and Mourdock are doing more for retired teachers than ISTA ever did. To repeat a post for the reading impaired.

Learned long ago when time to call it quits on seeking meaningful discussion–clearly still confusing matters that are not related–and understanding the Star aversion to anything public education and ISTA then editorial is the proper place for such discussion.

Probably no interest in congressional intent to study how to take over all the 401 K plans in the country either? I understand the treasurer of Indiana has issued a statement. Maybe he can make it clear just how Indiana congressmen stole $5 million from the Indiana Teacher’s Retirement Funds.

The

A LETTER FROM INDIANA STATE TREASURER RICHARD MOURDOCK

When I opted to seek the office of Treasurer of State, I never intended to be a part of a national news story. But neither did I expect that I would ever see the United States government act in a way that would take money away from retired Hoosiers. But it has done so.

The Obama administration has arbitrarily abandoned more than 100 years of law. Long-established legal precedent dictates that secured creditors are the first to have their interests protected in a bankruptcy. But not this time. This time the administration said the law was less important than the urgency of the situation and they threw away the rights of those they called “greedy speculators” and “unpatriotic”.

As The Wall Street Journal recently noted, retired Hoosier policemen and retired teachers are neither greedy speculators nor unpatriotic. They are hard working people who saved and expected their funds to be protected by those with the responsibility to do so. That is the essence of my job.

Indiana is the only party to intervene in the massive Chrysler bankruptcy. We are attempting to re-establish the rule of law that protects investors from arbitrary acts of government officials in depriving citizens of their property. It is a point of utmost importance.

Some believe Indiana should not have intervened in the bankruptcy. They feel the state is threatening the future of Chrysler. When we bought the millions of dollars of Chrysler bonds on behalf of retirees, we didn’t do so hoping Chrysler would fail. We bought them so they might succeed. But the action of the federal government is wrong and cannot be ignored.

I take my oath of office and fiduciary responsibilities very, very seriously. Indiana’s State Troopers, millions of Hoosier taxpayers and over 100,000 retired teachers have legal rights that are to be protected. As difficult as my actions have been I would have failed in my duties if I had not acted to intervene.

Sincerely,

Richard Mourdock
Indiana State Treasurerletter as follows:

Hello Jack,
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I was in Detroit in that time frame. I ‘escaped’ 11 days after I turned 17 by going into the Marine Corps.
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Government education was poor then, and I don’t see much improvement now.
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Then again, government typically fails at everything.

My bride wants to know what can she do to support Mr. Mourdock, our Indiana State Treasurer. Thanks for the post, Pascal.

No teacher is being cheated out of anything. Not one cent of insurance claims will go unpaid. No school system will have to pay one cne of insurance claims….there is a smooth transition being prepared from the ISTA Trust to other insurance coverages so that there is no lapse or additional cost to anyone or any school district. There seems to be some hysteria or old fashioned union bashing going on….I will be admit that there was some poor judgement or outright embezzlement going on but until all agencies complete their investigation, we wont know. Any one who stole any money should go to jail…