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From NYSUT Agreement With ING

NYSUT Benefit Trust is a non-profit trust organized and existing under the laws of the State of New York. This Trust operates for the benefit of its members and agency fee payers of the New York State United Teachers.

 

The Company (our,we) and NYSUT Benefit Trust agree to the following:

 

Sponsorship of the Opportunity Plus program by the NYSUT Benefit Trust;

 

Our provision, to all members and agency fee payers of educational programs focused on financial planning for retirement; and

 

Our employment of trained personnel to conduct these programs exclusively for members.

 

Additionally:

 

We reimburse NYSUT Benefit Trust for direct out of pocket expenses up to a maximum of $40,000 per year incurred in the promotion of the Opportunity Plus program.

 

We will pay NYSUT Benefit Trust $338,000 per quarter during 2002. This payment will increase in subsequent years, and may include in the future, an asset based component. NYSUT utilizes these amounts to enhance benefits to the participants in programs it sponsors.

 

We contribute to the cost incurred by NYSUT Benefit Trust for retaining up to six employees who assist in management of the Opportunity Plus program.

 

We compensate United University Professions $6,000 per month for the use of on-site campus facilities and the sponsorship of the Opportunity Plus program.

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Section 403(b) of the Internal Revenue Code permits two investment vehicles: One is authorized under section 403(b)1...the annuity while the other is authorized under section 403(b)7...the mutual funds choice. The Benefits Trust has endorsed two 403(b) programs offered by ING. One is called "Opportunity Plus" under 403(b)1 and the other is "Opportunity Independence" under 403(b)7.

 

Apparently the financial agreement between the NYSUT Benefit Trust and ING applies to just the "Opportunity Plus" program and not the "Opportunity Independence" program. The Benefit Trust receives no endorsement fees as a result of a NYSUT member investing with "Opportunity Independence". So in my view NYSUT would much rather see its members invest with Opportunity Plus even though Opportunity Independence might be better for them. Who helps the teacher decide which program to invest in? ING, who collects more fees with Opportunity Plus? or the Benefits Trust who receives endorsment fees from Opportunity Plus. What do you think?

 

Peace and Hope,

Joel L. Frank

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