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Last updated on Tuesday, May 26, 2009
(UNDATED) - The Indiana State Teachers Association expects to regain control of its own affairs within “a matter of months.”
The ISTA called in the parent National Education Association last week to take over day-to-day operations amid state and federal investigations of its disability trust fund.
The union will continue to handle state-level issues itself, including lobbying for school funding in the new state budget.
Deputy Director Dan Clark says with the possibility the national union will have to bail out the trust fund, it needs full control of operations to keep the price tag as low as possible.
Former Massachusetts Education Association President Edward Sullivan will serve as a trustee overseeing the ISTA until the trust fund situation is resolved.
The FBI, Secretary of State Todd Rokita and The Indiana Department of Insurance are investigating whether a Morgan Stanley fund manager made an excessive number of trades in the disability fund's portfolio.
An overwhelming majority of that portfolio was in high-risk investments, and losses on those investments have left the ISTA with an unfunded liability estimated at $68 million.
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