The Trust: An Enduring Idea
By Scott Culver
Communications Specialist
WEA Trust
May 2003
Sometimes the simplest idea produces the most remarkable results. The
birth of the WEA Trust illustrates that idea.
More than 30 years ago, WEAC asked a group of leaders to look into finding
a better way to deal with benefits. At that point, WEAC was fed up with
its members having to pay too much for benefits and getting too little
in return.
Then, as now, the problem was to find an effective way to maximize the
use of benefit dollars.
“At that time, the usual method was to sort through the commercial
insurers and their offerings, and then recommend one or two for the members,”
said Trust Executive Director Al Jacobs. “But as long as these companies
put profits before other considerations, members weren’t getting
the best deal possible.”
After two years of extensive research and debate, the WEAC group decided
on the best approach for providing members with insurance benefits: WEAC
should create an independent trust to provide insurance and other benefits
to members on a not-for-profit basis. And so the Trust was born.
In the ensuing three decades, the organizations born out of that original
Trust concept have succeeded beyond the expectations of those who conceived
the idea and have set the standard by which public school employee benefits
are measured today. Whether it’s health insurance, a retirement savings
program, or individual insurance products, the financial welfare of Wisconsin
public education employees is protected or enhanced by some of the best
products and benefits available anywhere.
Trust keeps members at forefront
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
in mind.
Wendy Wellnitz, the chief negotiator for the Mayville Education Association,
appreciated the value of the Trust after her district tried self-funding
for a couple of years only to return to the Trust.
“The Trust was always there for us over the many years that were
part of a self-funded health program – helping us despite no guarantees
that we would be returning to their coverage. I can think of no better
insurance group to put our trust in than the WEA Trust.”
The Trust’s not-for-profit structure requires that we use all dollars
we receive exclusively for benefits payment and necessary administrative
costs. None of the money the Trust collects is spent on 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 our two main competitors.
Trust believes in its mission
Financially, the Trust operates independent 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,” Jacobs said. “We
believe in our mission and look forward to continuing in that role.”
Posted June 11, 2003