California Educator

September 09

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2007 Summary Annual Report This is a summary of the annual report of the For CTA Economic Benefits Trust Member Welfare Benefit Plan Plan expenses were $35,172,414. These expens- 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 Ad- ministration, 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 in- surance, 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 in- formation and well-baby program, a consumer ben- efits 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 as- sets, 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 appre- ciation 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 as- sets 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 em- ployee contributions of $31,773,988, realized gains of $87,415 from the sale of assets and earnings from investments of ($2,768,395). es 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 ac- countant’s report; 2) financial information and information on payments to service providers; 3) assets held for investment; and 4) insurance infor- mation, including sales commissions paid by in- surance 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 Teach- ers 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 in- cluded as part of that report. You also have the legally protected right to examine the annual re- port at the main office of the plan (California Teachers Association, 1705 Murchison Drive, Bur- lingame, 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 Admin- istration, U.S. Department of Labor, 200 Constitu- tion Avenue NW, Washington, DC 20210. b y C t A p r esiden t d A vid A. s A n C hez Continued from page 4 progress that can’t be measured with a single test score. The administration knows this and should be promoting a multiple-measures approach to recognizing student achievement and teacher ef- fectiveness. It will also make it harder to recruit and retain teachers in lower-performing schools, the very schools and students Secretary Duncan claims he wants to help. Supporters of RTTT say they want education re- form to be based on research. Well, I don’t know where they are getting their research, but the reforms contained in RTTT are not proven to work. In fact, numerous studies point out that these reforms don’t work. Secretary Duncan has said that he wants edu- cators to be a part of the process, so we must speak up. This plan is ridiculous in its requirements and disheartening in its nature. Our students deserve re- form that is rooted in proven research and that takes into account their unique abilities and challenges. And educators deserve reform that respects their professional opinions and experience, and that strengthens the integrity of the profession. Unfortunately, in order to comply with RTTT guidelines, Governor Schwarzenegger has convened a special legislative session and is pushing a flawed package of education reforms similar to those rejected by voters in 2005. State lawmakers need to slow down and truly consider the long-term repercussions of their actions. None of these reforms reduce class sizes or restore one art or music program. CTA has already provided feedback to Secretary Duncan on the proposed RTTT guidelines. I’m ask- ing that you contact your state lawmakers and tell them to focus on getting our school the resources they need, rather than pushing more top-down mandates that punish students and educators. Tell them to slow down and be careful with the laws that govern our public schools and safeguard our children. You can see that we have quite a year cut out for us. I want to let you know that CTA will make sure its members’ voices are heard. Together we’re going to create the positive change that will give educa- tors the tools to create an educational system wor- thy of our students. september 2009 | www.cta.org 35

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