INDIANAPOLIS — The state’s largest teachers union is laying off dozens of employees in the wake of a financial crisis that spurred investigations of its troubled insurance trust.
Union officials representing two groups of workers at the Indiana State Teachers Association say at least 40 people will lose their jobs after 60 days notice. A third union representative would not comment on how many people in her division will be laid off, but the total number of layoffs is likely to be higher than 40.
ISTA and the National Education Association are trying to scrape up enough cash to pay 650 people receiving long-term disability benefits from ISTA’s insurance trust — which is under investigation as officials determine whether fund managers did something more than make risky investments.
ISTA had previously said it didn’t have enough money to cover the long-term disability claims, which could cost $45 million to $65 million over the next 15 to 20 years. But ISTA and NEA officials said Monday that they will find the money to pay the claims.
Aside from the layoffs, ISTA could free up some money by increasing dues for Indiana teachers — currently set at $449 a year. The union could also consider selling its office building across from the Indiana Statehouse.
ISTA President Nate Schnellenberger said Monday that all options are on the table.
NEA Trustee Ed Sullivan met with ISTA leaders from three union groups Tuesday to discuss the layoffs, said ISTA Deputy Director Dan Clark.
The Professional Staff Organization at ISTA covers about 55 full-time and part-time workers — including lobbyists and employees who work directly with teachers on contracts and other issues, said Sandra Steele, president of the PSO. She said eight full-time positions and 10 part-time jobs will be eliminated.
One position was vacant, so 17 people will be affected. Employees with more seniority will be able to “bump” other workers.
“We’re trying to save the organization at this point and meet our obligation to members,” she said. “We’ll work through this. Of course people are disappointed because some of our new hires may lose their jobs.”
The Associate Staff Organization at ISTA, which also covers about 55 people, will lose 24 positions, said ASO president Kathy Hill. One job was empty, so 23 people will be affected. That includes nine positions with the financial services division, which worked with the insurance trust.
Hill said some workers were disappointed to lose their jobs because of the insurance trust’s problems, although she said employees understand that it’s important to pay the long-term disability claims.
A third organization covers workers who help process insurance claims through the trust. A union official declined Tuesday to say how many layoffs would come from that area.
The Indiana Department of Insurance says ISTA’s insurance trust has a net worth of negative $67 million. Clark said last month that allegations had been made of “inappropriate fees and inappropriate trading as well as inappropriate investments.”
The Indiana secretary of state’s office has declined to say whether it is investigating, but Clark says the office had issued subpoenas for two former ISTA employees who made decisions about the trust. One has since retired and another resigned, although the reasons behind the personnel changes were unclear. Investment firm Morgan Stanley has said it has handled ISTA’s trust since 2008 and that it would fully cooperate with investigators.
ISTA also is investigating and said it could take legal action against those involved with managing the trust.
Recent Local News
Indiana teachers union lays off dozens
ISTA’s insurance trust is under investigation
- Recent Local News
-
-
SWEET TREAT: Volunteers see the attraction of annual Starlight Strawberry Festival
-
Board chair: Parks district best solution for New Albany and Floyd County
Mayor Jeff Gahan’s veto of a new parks deal between the city and county was upheld earlier this month by the New Albany City Council. While the Floyd County Council agreed to still pay an additional $100,000 toward the parks department for the remainder of the year, the city and county remain under a prior agreement that led to funding discrepancies in the past.
-
THE 'V' WORD: SUB: Prosser Career Education Center moves away from stigma of ‘vocational’ school
- TARC sets Memorial Day and Kennedy Bridge route changes
- Indiana man releases hostages, fatally shoots self
-
Vietnam veteran receives medals 46 years after active duty ends
- More travelers to hit the road this Memorial Day weekend
-
Pence talks bridges, jobs during Southern Indiana swing
“I think everyone senses with the recent bridges agreement, the potential for extraordinary growth,” said Mike Pence, a U.S. House member who is seeking to replace Gov. Mitch Daniels and retain the gubernatorial seat for the Republican Party.
- Police: Gunman has hostages in Indiana realty office
-
Delaware woman dies in I-65 crash
-
Collingsworth Family to perform at Silver Heights Retreat Center in New Albany
The Collingsworth Family will be making a return trip to the Silver Heights Retreat and Camp Center in New Albany on Thursday, June 7.
-
Clark County approves self-insurance plan
Clark County Insurance Agent-of-Record Diane Swank presented health insurance renewal options at the council meeting Monday, but the county’s fiscal body decided to recess its meeting in order to review a proposal to move the county to a self-insured plan.
-
New theater directors at NAHS and FCHS ready for their programs
As the curtain falls on the careers of the teachers who put the theater programs of Floyd Central and New Albany high schools on the map, the new blood coming in have big hopes for the programs they’re taking over.
-
Jeff to start enforcing insurance ordinances
A 2004 ordinance that dictates how much city retirees pay for health insurance – ignored for years by Jeffersonville officials – looks like it will now be enforced.
-
Top Gun showing Saturday at the New Albany riverfront
In honor of Memorial Day, the city of New Albany will show the movie “Top Gun” on its new 40-foot screen at the Riverfront Amphitheater Saturday.
- More Recent Local News Headlines
-
