Unauthorized Tax Sheltered Annuity Products Revealed

The collective bargaining agreement between the Paterson Public Schools and the P.E.A. calls for the parties to mutually agree on tax-deferred programs that may be offered to P.E.A. members in the district.

Recently the Association was advised that an unauthorized program provided by MetLife had found its way into the district and some P.E.A. members had been contacted for 403(b) and 457(b) programs.

P.E.A.'s long standing policy requires that no TSA program will be approved if it is offered by an insurance agent who happens to sell TSA's or if the product being offered is not equal to the products currently provided by approved providers. The Met Life program meets neither of these requirements.

Apparently, one of the many new administrators who have entered the district was allowed to bring their program with them upon their employment. While the MetLife representatives were told that they were not permitted to solicit P.E.A. members, apparently they were not advised as to who were represented by the Association.

The District is in the process of correcting the errors that were made with the assistance of representatives of AIG-VALIC.

Currently five TSA programs have received approval from P.E.A. and the District. They are:

AIG - VALIC Best of America SunAmerica John Hancock The Hartford

For further information about these programs and benefits, go to www.PatersonEA.org, and click on Member Benefits.