By David A. Sanchez
This is a summary of the annual report of the California Teachers Association Economic Benefits Trust Member Welfare Benefit Plan, EIN 94-0362310, Plan No. 590, for the period Sept. 1, 2007, through Aug. 31, 2008. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).
Insurance Information: The plan has contracts with Standard Insurance Company to pay life insurance, AD&D, temporary disability and long-term disability claims incurred under the terms of the plan. The total premiums paid for the plan year ending Aug. 31, 2008, were $31,773,988.
Because they are so-called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending Aug. 31, 2008, the premiums paid under such "experience-rated" contracts were $31,773,988 and the total of all benefit claims paid under these experience-rated contracts during the plan year was $23,329,822.
The Plan finances, to specified members of CTA, death and dismemberment benefits through the CTA Death and Dismemberment Plan, a health information and well-baby program, a consumer benefits education program, a retiree discount vision program, and, intermittently, a premium holiday benefit. These benefits are self-funded by the Plan and are not insured by an insurance company.
Basic Financial Statement: The value of plan assets, after subtracting liabilities of the plan, was $65,548,238 as of Aug. 31, 2008, compared to $69,483,635 as of Sept. 1, 2007. During the plan year the plan experienced a decrease in its net assets of $3,935,397. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $31,237,017 including employee contributions of $31,773,988, realized gains of $87,415 from the sale of assets and earnings from investments of ($2,768,395).
Plan expenses were $35,172,414. These expenses included $2,908,080 in administrative expenses and $32,264,334 in benefits paid to participants and beneficiaries.
Your Rights to Additional Information: You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1) an accountant's report; 2) financial information and information on payments to service providers; 3) assets held for investment; and 4) insurance information, including sales commissions paid by insurance carriers.
To obtain a copy of the full annual report, or any part thereof, write or call the office of Risk Management/Member Benefits, California Teachers Association [the Plan administrator], 1705 Murchison Drive, Burlingame, CA 94010; (650) 697-1400. The charge to cover copying costs will be 25 cents per page.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. You also have the legally protected right to examine the annual report at the main office of the plan (California Teachers Association, 1705 Murchison Drive, Burlingame, CA 94010) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC 20210.