A class action lawsuit has been filed alleging the union breached its fiduciary duty by accepting millions of dollars in payments from an investment firm in exchange for endorsing products to plan members. The lawsuit was filed in federal court in Manhattan on behalf of participants of the New York State United Teachers Member Benefits Trust. The lawsuit alleged the teachers' trust exclusively endorsed a high-fee annuity investment offered by ING Life Insurance and Annuity Company. In return, ING reimbursed the trust for salaries of some employees whose jobs were to promote the company's products to plan members. It claims the trust oversaw the retirement plan and had a fiduciary duty of loyalty to the participants, and therefore violated the Employee Retirement Income Security Act, or ERISA.
The New York State United Teachers is a federation of local unions representing 575,000 people who work in or are retired from schools, colleges and health care facilities across the state.
