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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indiana State Teachers Association and its parent organization, the National Education Association, will pay the long-term disability costs of current beneficiaries despite a previous announcement to the contrary.
About 650 disabled Indiana teachers are receiving monthly benefit payments.
The benefits for teachers who bought long-term disability coverage from the ISTA Insurance Trust had been in doubt since last week, when the ISTA put out a memo saying it would discontinue payments after July.
That decision drew sharp criticism from Indiana Insurance Commissioner Jim Atterholt, who said, “These people on disability – they have nothing after July. How do they pay their bills?”
The teachers union will officially announce the change of heart at a news conference at 1 p.m. today at the ISTA offices.
“As promised, we are working with our national affiliate to make good on our commitment to our members,” ISTA President Nate Schnellenberger said in a statement.
The Indiana Department of Insurance estimates the ISTA Insurance Trust’s liabilities exceed its assets by $67 million, with $40 million of the shortfall stemming from its long-term-disability insurance program.
About 90 school districts provide the trust’s long-term-disability coverage to their teachers.
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