Succeeding Beyond Expectations

By Scott Culver
Communications Specialist
WEA Trust

September 2001

More than 30 years ago, WEAC formed an independent welfare benefit trust to provide a better benefit deal for its members than was available from conventional insurers. In the ensuing three decades, the WEA Trust has succeeded beyond the expectations of its founders, and has set the standard by which public school employee benefits are measured today.

While both WEAC and its Trust take pride in this accomplishment and look forward to continuing in this role, not everyone has embraced our achievement. In the past year, the voices of our detractors have grown louder. Some of you may have heard or read comments in various media reports challenging our way of doing business.

The Trust’s critics see its success as a byproduct of stifling competition, not as a result of the value it provides to school districts. They see the Trust’s success as an example of WEAC imposing its will on the bargaining process.

We disagree with their assessment and believe the reasons for our success are more elementary.

The Trust thrives in the marketplace because it represents the best deal available. School employers and employees share a common trait – they want value for the dollars they spend on benefits. Our programs are designed by members, for members, and with members’ best interests at heart.

Our not-for-profit structure requires that we use all the dollars we receive exclusively for benefit payments and necessary administrative costs. None of the money the Trust collects is spent on ad campaigns, sales commissions, or stockholder dividends. As a result, public school districts get better benefits at a lower cost.

The Trust’s cost of doing business (expense ratio) is one of the lowest in the insurance industry, and it returns a higher percent of every premium dollar in payments on behalf of members.

We also believe all our members should be treated fairly and should receive the benefits to which they are entitled. But we don’t just talk the talk – we back it up. Consider, for example, complaints filed with the Office of the Commissioner of Insurance (OCI). Far fewer complaints are filed against the Trust than against its two main competitors, and even well below the state average.

Financially, the Trust operates independently of WEAC. While the WEAC Board elects the trustees who serve on the various Trust boards, the Trust returns no money to WEAC. All the trustees are active or retired public school employees who serve without compensation. As educators, they understand the needs of public school employees and direct Trust programs to provide quality, comprehensive products and services to members.

Our programs are designed to protect and enhance the economic well-being of the state’s public school employees. While we acknowledge that criticism of our mission comes with the territory, we remain steadfast in our methods and look forward to continued service to our members.

Posted September 14, 2001