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State Settles With Teachers Union

Last updated on Wednesday, December 4, 2013

(STATEHOUSE) - A $14 million settlement between the state and it’s largest teacher’s union is now final.

The money is roughly half of what 27 school districts invested in health plans sold by the Indiana State Teachers Association.

Secretary of State Connie Lawson says the money was invested in a long term disability plan and in other places and was lost in "risky investments."

"Even after they understood that the funds were insolvent, they continued to offer the plan," said Lawson.

Then-Secretary of State Todd Rokita filed a civil lawsuit against ISTA and it's parent union, the National Education Association, in 2009 after the U.S. Attorney's office declined to file criminal charges.

The union has ten days to pay the settlement.

When it was first announced in August, ISTA spokesman Mark Shoup said the money would come from a settlement fund connected to the union's own lawsuit against it's former executive director for his alleged role in the failed health plans.

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