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febarnes

Valic/ Lawsuit

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I recently saw an ad for the James Sokolove law firm. The ad offered a free consultation for a potential lawsuit against VALIC. Does anyone know the details about this potential action? By the way, my school system has dumped Valic as our vendor. Thanks for a response.

Febarnes

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febarnes --

Call the law firm and they will TELL you the details. In all liklihood they would appreciate having a few more plaintiffs on board, so they'll be happy to talk to you. No fear!

 

JudyS

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Hi Febranes,

Why did your school sytem dump Valic?

thanks,

Steve

 

Steve

I personally researched my account and found the balance did not correlate with fees and expenses.

Valic violates both full disclosure and fiduciary trust. I personally appeared before our school board to have them removed. I requested the original plan document from Valic. They never gave it to me. I made the request under the freedom of info act. They blatantly disregarded my written request. I have no respect for AIG/Valic. Some of the teachers at my school had entertained ideas of filling a class action suit against them. However, since getting rid of them, that talk has died. My one regret is I allowed some 5 years to pass before taking action.

 

 

febarnes --

Call the law firm and they will TELL you the details. In all liklihood they would appreciate having a few more plaintiffs on board, so they'll be happy to talk to you. No fear!

 

JudyS

 

 

Judy,

I like your attitude. I presented 12 pages of summary material related to Valic to our board. I had five minutes to present and make a formal request. I did this without anyone attending the meeting with me. I cannot believe this is not a common and persistent problem with Valic. It bothers me to see teachers of my children violated by a group such as Valic.

 

FeBarnes

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Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

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Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

 

The plan document did fall under the foia as public tax dollar match is provided by the system. The system provided the original document. Valic should have provided the document as a part of full disclosure which is covered by the S.E.C. I talked to an agent with the S.E.C. and considered filling a complaint.

However, when the system agreed to a change of vendors, I chose to spend my time finding a new vendor. I did not get the ones I wanted ( Vanguard, Fidelity, Creff) what I wanted, but it was an improvement.

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Hi Febranes,

Why did your school sytem dump Valic?

thanks,

Steve

 

Steve

I personally researched my account and found the balance did not correlate with fees and expenses.

Valic violates both full disclosure and fiduciary trust. I personally appeared before our school board to have them removed. I requested the original plan document from Valic. They never gave it to me. I made the request under the freedom of info act. They blatantly disregarded my written request. I have no respect for AIG/Valic. Some of the teachers at my school had entertained ideas of filling a class action suit against them. However, since getting rid of them, that talk has died. My one regret is I allowed some 5 years to pass before taking action.

 

 

febarnes --

Call the law firm and they will TELL you the details. In all liklihood they would appreciate having a few more plaintiffs on board, so they'll be happy to talk to you. No fear!

 

JudyS

 

 

Judy,

I like your attitude. I presented 12 pages of summary material related to Valic to our board. I had five minutes to present and make a formal request. I did this without anyone attending the meeting with me. I cannot believe this is not a common and persistent problem with Valic. It bothers me to see teachers of my children violated by a group such as Valic.

 

FeBarnes

 

 

Good work FeBarnes! The more you keep VALIC away from teachers the better. It doesn't surprise me one bit that VALIC would withhold documents even though they are required under the ERISA regs to present them when requested. They will do anything for their bottom line.

We have a similar situation at my SD.

Best wishes,

Steve

 

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Hi Febranes,

Why did your school sytem dump Valic?

thanks,

Steve

 

Steve

I personally researched my account and found the balance did not correlate with fees and expenses.

Valic violates both full disclosure and fiduciary trust. I personally appeared before our school board to have them removed. I requested the original plan document from Valic. They never gave it to me. I made the request under the freedom of info act. They blatantly disregarded my written request. I have no respect for AIG/Valic. Some of the teachers at my school had entertained ideas of filling a class action suit against them. However, since getting rid of them, that talk has died. My one regret is I allowed some 5 years to pass before taking action.

 

 

febarnes --

Call the law firm and they will TELL you the details. In all liklihood they would appreciate having a few more plaintiffs on board, so they'll be happy to talk to you. No fear!

 

JudyS

 

 

Judy,

I like your attitude. I presented 12 pages of summary material related to Valic to our board. I had five minutes to present and make a formal request. I did this without anyone attending the meeting with me. I cannot believe this is not a common and persistent problem with Valic. It bothers me to see teachers of my children violated by a group such as Valic.

 

FeBarnes

 

 

Good work FeBarnes! The more you keep VALIC away from teachers the better. It doesn't surprise me one bit that VALIC would withhold documents even though they are required under the ERISA regs to present them when requested. They will do anything for their bottom line.

We have a similar situation at my SD.

Best wishes,

Steve

 

 

I am still incensed they are allowed to operate in Georgia's schools. Superintendents and Boards should wake up. I may join the class action suit if it is adjudicated. I spent 6 months working after hours to find out the scam. I do not know how their agents sleep at night. We are getting a new Super. I may approach him about adding Vanguard, Fidelity and Creff to our plan. However, there will be resistance. I guess I just like to push the envelope.

 

 

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I guess I just like to push the envelope.

 

 

febarnes,

It took years to convince my teachers union to either approve of a low cost option for the "union approved" 403b vendor or just don't use the outdated system. About a year ago, they terminated the union approved system. It takes time but the "pushing the envelope" strategy eventually works. It works because you and I are doing the right thing and SD, unions and agents for the most part are doing the unethical thing. This example is an exaggeration but Ghandi said that "tyranny never ever works" for the long term. Unethical behavior never lasts either.

Have a great weekend,

Steve

 

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Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

 

The plan document did fall under the foia as public tax dollar match is provided by the system. The system provided the original document. Valic should have provided the document as a part of full disclosure which is covered by the S.E.C. I talked to an agent with the S.E.C. and considered filling a complaint.

However, when the system agreed to a change of vendors, I chose to spend my time finding a new vendor. I did not get the ones I wanted ( Vanguard, Fidelity, Creff) what I wanted, but it was an improvement.

 

 

If you got the plan document from the system what are you complaining about? The SEC agent misinfomed you (which is to be expected since the SEC does not regulate disclosure required under retirement plans and knows even less about securites regulation - for 20 years SEC could not figure out that Bernie Madoff was acting as an investment advisor instead of as a broker even though he was invesitgated 9 times). As stated previously plan documents are the responsibility of the plan sponsor since VALIC would not be responsible for adopting and amending the plan document. The only disclosure required of VALIC is the prospectus/disclosure of its investment product. The vendors you desire have withdrawn from the voluntary 403b market place because the cost of compliance with the IRS regs is not worth the effort.

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I guess I just like to push the envelope.

 

 

febarnes,

It took years to convince my teachers union to either approve of a low cost option for the "union approved" 403b vendor or just don't use the outdated system. About a year ago, they terminated the union approved system. It takes time but the "pushing the envelope" strategy eventually works. It works because you and I are doing the right thing and SD, unions and agents for the most part are doing the unethical thing. This example is an exaggeration but Ghandi said that "tyranny never ever works" for the long term. Unethical behavior never lasts either.

Have a great weekend,

Steve

 

 

I appreciate your encouragement. It has been a lonely journey at times. I was told don't buck the system. Others looked at me with you are living dangerously close to termination. I am thankful my board was willing to listen.

Insurance companies are not near the top of my to be loathed list.

 

 

 

 

Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

 

The plan document did fall under the foia as public tax dollar match is provided by the system. The system provided the original document. Valic should have provided the document as a part of full disclosure which is covered by the S.E.C. I talked to an agent with the S.E.C. and considered filling a complaint.

However, when the system agreed to a change of vendors, I chose to spend my time finding a new vendor. I did not get the ones I wanted ( Vanguard, Fidelity, Creff) what I wanted, but it was an improvement.

 

 

If you got the plan document from the system what are you complaining about? The SEC agent misinfomed you (which is to be expected since the SEC does not regulate disclosure required under retirement plans and knows even less about securites regulation - for 20 years SEC could not figure out that Bernie Madoff was acting as an investment advisor instead of as a broker even though he was invesitgated 9 times). As stated previously plan documents are the responsibility of the plan sponsor since VALIC would not be responsible for adopting and amending the plan document. The only disclosure required of VALIC is the prospectus/disclosure of its investment product. The vendors you desire have withdrawn from the voluntary 403b market place because the cost of compliance with the IRS regs is not worth the effort.

 

If you will read my previous post, you will see that the board sent me the original document. It required about six weeks to get it. I can only believe what I was told by the S.E.C. I was told Valic had an obligation of full disclosure and a fiduciary trust. This is required because my money was invested in mutual funds. This falls under their umbrella.

Just because they failed to do their job in regards to Madoff does not necessitate the abdication of duty to those they are supposed to protect.

 

 

 

 

Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

 

The plan document did fall under the foia as public tax dollar match is provided by the system. The system provided the original document. Valic should have provided the document as a part of full disclosure which is covered by the S.E.C. I talked to an agent with the S.E.C. and considered filling a complaint.

However, when the system agreed to a change of vendors, I chose to spend my time finding a new vendor. I did not get the ones I wanted ( Vanguard, Fidelity, Creff) what I wanted, but it was an improvement.

 

 

If you got the plan document from the system what are you complaining about? The SEC agent misinfomed you (which is to be expected since the SEC does not regulate disclosure required under retirement plans and knows even less about securites regulation - for 20 years SEC could not figure out that Bernie Madoff was acting as an investment advisor instead of as a broker even though he was invesitgated 9 times). As stated previously plan documents are the responsibility of the plan sponsor since VALIC would not be responsible for adopting and amending the plan document. The only disclosure required of VALIC is the prospectus/disclosure of its investment product. The vendors you desire have withdrawn from the voluntary 403b market place because the cost of compliance with the IRS regs is not worth the effort.

 

If you will read my previous post, you will see that the board sent me the original document. It required about six weeks to get it. I can only believe what I was told by the S.E.C. I was told Valic had an obligation of full disclosure and a fiduciary trust. This is required because my money was invested in mutual funds. This falls under their umbrella.

Just because they failed to do their job in regards to Madoff does not necessitate the abdication of duty to those they are supposed to protect.

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Why is Valic obligated to provide you with the plan document which should be available from the plan administrator, not the provider? FOIA only pertain to obtaining access to documents of government agencies, not a private corporation, such a Valic which does not want to be burdened with complying with requests from every participant.

 

Participants in plans coverd by ERISA are entitled to receive the plan document from the plan adminstrator provided they pay a fee of $.25 per page. Tell the SD that you will pay for a copy of the plan document or post it on the internet.

 

The plan document did fall under the foia as public tax dollar match is provided by the system. The system provided the original document. Valic should have provided the document as a part of full disclosure which is covered by the S.E.C. I talked to an agent with the S.E.C. and considered filling a complaint.

However, when the system agreed to a change of vendors, I chose to spend my time finding a new vendor. I did not get the ones I wanted ( Vanguard, Fidelity, Creff) what I wanted, but it was an improvement.

 

 

If you got the plan document from the system what are you complaining about? The SEC agent misinfomed you (which is to be expected since the SEC does not regulate disclosure required under retirement plans and knows even less about securites regulation - for 20 years SEC could not figure out that Bernie Madoff was acting as an investment advisor instead of as a broker even though he was invesitgated 9 times). As stated previously plan documents are the responsibility of the plan sponsor since VALIC would not be responsible for adopting and amending the plan document. The only disclosure required of VALIC is the prospectus/disclosure of its investment product. The vendors you desire have withdrawn from the voluntary 403b market place because the cost of compliance with the IRS regs is not worth the effort.

 

Intruder,

I have a 403 B with Vanguard. They are still in the 403 B business. Just read it on their website.

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While VG is still offers its funds to some 403b plans it has drastically reduced the number of insitutions that it services. Since the beginning of this year a number of posters on this board have noted that VG had withdrawn as a provider for their 403b plan because of issues in providing information required under the IRS regs to the plan administrator.

 

Mutual funds are required to provide disclosure of documents that they control such the prospectus. However the Plan sponsor, not the mutual fund family, is responsible for the plan document. Every participant in a plan subject to ERISA is entitled to recieve a copy of the plan doument from the plan administrator, not the mutual fund company. The SEC needs a new umbrella.

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febarnes --

 

Take all those pages of documentation that you presented to the board, copy them,a nd forward them to the attorney who is advertising for clients.

 

I actually got involved (peripherally) in one of those large suits because of posting on this board... you never know who's reading this!! I do believe there are some decent people out there fighting the likes of the annuities firms and the Valics of the world.

 

Go for it... whatcha got to lose?

 

JudyS

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While VG is still offers its funds to some 403b plans it has drastically reduced the number of insitutions that it services. Since the beginning of this year a number of posters on this board have noted that VG had withdrawn as a provider for their 403b plan because of issues in providing information required under the IRS regs to the plan administrator.

 

 

Intruder,

Slight correction, we have been complaining about SD's policies that keep the likes of VG from signing up as a 403b vender for years, not just this year.

Where is the evidence that VG "has drastically reduced the number of institutions?" Do you have a number before this year compared to 2009?

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