ISTA: “We Are Going to Put All the Cards On the Table”
The chief lobbyist for the Indiana State Teachers Association says it will go public in the next few days and disclose all the facts regarding investments which led to a $67 million debt in its medical and long term disability insurance fund and an investigation by the Federal Bureau of Investigations and the Indiana Secretary of State’s Office.
Dan Clark told me tonight the only way the organization can mitigate the damages is to “be honest about the facts.”
Clark admits ISTA’s trust fund could be a target of the FBI and SOS investigations, but the authorities could also be investigating the brokerage firm which did the investments as well. The Indiana Department of Insurance noted that ISTA had invested in high risk securities like real estate as opposed to more secure government bonds. Clark says the health care funds managers have stepped down, former ISTA director Warren Williams retired and Robert Frankel, the insurance fund’s director, has resigned.
Clark says ISTA will issue a comprehensive statement outlining the following…
- The transfer of its medical insurance fund to United Health Care.
- The transfer of its long-term disability insurance to another insurance company.
- A thorough review of its investment practices.
- Announce a solution to resolve its $67 million debt which include raising premiums, reducing expenses, liquidating assets.
By transferring the funds to private insurance carriers, Clark says current contracts with Indiana school districts won’t be impacted.
“We need to put all the cards on the table,” Clark said.
Clark will appear on my morning radio show tomorrow at 735. Tune into Newstalk 1430 AM, WXNT or newstalk1430.com.
