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Schools to be reimbursed, long term disability fund impacted

From one side of the country to the other and everywhere in between, millions of people are well aware of the importance of carrying the appropriate amount of long-term disability insurance. While some purchase this coverage on their own, others receive a policy through their employer.

Unfortunately, it is not uncommon for a long-term disability lawsuit to be brought to the forefront. Although our California readers may not spend much time reading about news from the state of Indiana, this story is well worth checking out in greater detail.

In August, the state announced a $14 million settlement with the Indiana State Teachers Association. According to Secretary of State Connie Lawson, this is just about half of the money that 27 school districts lost in a “Ponzi scheme,” which involved health plans sold by the Indiana State Teachers Association.

In 2009, the Indiana State Teachers Association was sued by State Securities Commissioner over the health trusts. With this program, schools were able to build surpluses of money that was held while also invested by the association. Rather than doing this, however, the state claims that the union combined the money with its long-term disability fund. As a result, the disability fund lost money, and the union then made risky investments with the hopes of recovering the cash.

This story continues to develop, as it will not be long before information is made public as to which schools will be reimbursed.

Not all long-term disability lawsuits are this extensive, but anybody who is faced with this concern should consider getting touch with an employment law attorney.

Source:  WIBC, “Schools to be Reimbursed in ISTA Settlement” Ray Steele, Dec. 03, 2013

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