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Guest 3 Point Shooter

Switching VEBA Companies.....dishonest behavior

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Guest 3 Point Shooter

Is there any way to move all my VEBA (501c) $ (over 60K) to a different company? I currently have my VEBA $ with MetLife/ISTA Financial. ISTA is the Indiana State Teachers Union. MetLife/ISTA Financial oversaw most of the "buyouts" of severance-type beneifts here in Indiana. But, in my school, they got involved in the negotiating of our buyout contract (of: a) accumulated sick days and b) future health care. Their agent got up on our stage, in front of 100 teachers, only 5 days BEFORE the teachers voted "yes" on their contract. Their agent told us what the agreed upon terms were in the contract.

Long story short: our superintendent of schools got DEEPLY involved in altering a settled contract. When all the lying and cheating began, our local teachers union, MetLife, and ISTA tried to run away from the promises they had made. They tried NOT to defend teachers. It was up to me to hold all parties responsible. I will not go into details, but it got NASTY....I had to recruit a junior high teacher and teach him everything the superinendent was attempting. I knew I was due $81,000, the superintendent, by altering agreed upon terms, tried to give me as low as $68,000 total (in VEBA and 401A monies). By holding everyone's feet to the fire (I have the e-mail ISTA sent out telling our local union NOT to defend the teachers and NOT to speak to me...heck, I was holding all parties responsible, as I said), I eventually recovered most of my promised and negotiated $: $81,000 anyway. I am STILL owed over $1,000 of VEBA $ by the school district.

Anyway, ISTA is obviously connected to MetLife as you can see. I DO NOT trust them with my $ after their behavior: they were the ones on stage (this is all on video tape...I have the video!) making promises to our teachers of the terms of the contract. While I think they told the truth, when the superintendent started all the lying and cheating, MetLIfe and ISTA ran away and even told the teachers to file a grievance.....pretty pathetic when you consider that my firend and I eventually got one filed (we have a VERY weak local teachers union), and $400,000 was won for the teachers....$13,000 of that mine.

What are other companies that I could transfer the $ to? Can such a transaction (changing VEBA companies) even take place? The amazing thing here is all the evidence I have on MetLife and ISTA...on video and e-mails of an effort to tell the techers to just let the dishonest superintendent run all over them. No, I do not trust MetLife/ISTA Financial! I would love to take my $ away from them. I already took my 401A $ away from them in an IRA Rollover, but I have no idea how to get the VEBA $ away from them....they are SO dishonest!

Sincerely,

3 Point Shooter

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Guest americasVEBA.com

VEBA to VEBA transfers are allowed. I am familiar with the ISTA program as well. ISTA and metLife may prevent you from moving the assets. Check your trust agreement and investment prospectuses to for more direction.

See www.americasVEBA.com

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Guest tsquish

My mother-in law is in a similar situation did you ever get a resolution on this?

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The union (ISTA) owns and administers the VEBA. They can send a case out for bid at any time. Why would they collude with MetLife Resources, as you aver? The terms of the relationship was negotiated between the ISTA and MetLife.

Altering a "settled contract" seems to me to be one of the duties of union leadership. We call it negotiation. The leaders of the union negotiate with the representatives of the employing school districts and change wages, benefits, working conditions, etc. all the time (although usually just prior to the expiration of the CBA).

It appears to me that your problem here is not in the relationship with MetLife, but with the leadership of the ISTA. What can a union member do when he/she thinks his leadership does not represent him or her? (i) Run for union office; (ii) Talk up the problems with the union leadership and members, or (iii) file suit.

There is no requirement that the ISTA permit transfer of an individual's funds to another VEBA. In fact, portability, although legally permissible, is not at all common among VEBAs or other health and welfare plans.

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