FB.06.02
April 24, 2006

UNIVERSITY OF ILLINOIS
URBANA-CHAMPAIGN SENATE

Prefiled Resolution
(Final; Action)

FB.06.02	Resolution Regarding AIG-Sun America:  Safeguarding the Interests of Employees and Retirees of the State of Illinois/University of Illinois

Background
AIG-Sun America has provided annuity calculations which do not comply with the average standard calculations of the industry leaders.  For two sample accounts the calculations appear to be 30% below industry averages.

Last minute calculations by AIG-Sun America pressure account holders to make hasty “take it or leave it” decisions.  In the two sample accounts, hasty decisions to accept AIG-Sun America calculations would have resulted in AIG-Sun America benefiting by thousands of dollars to the detriment of the account holders.

The State of Illinois/University of Illinois needs to have in place expeditious and efficient remedies safeguarding the rights of employees/beneficiaries of its 403 plans. 

Whereas,	In 1999, Sun America (currently AIG-Sun America) finalized its assumption of various retirement accounts from the State of Illinois/University of Illinois; and

Whereas,	AIG-Sun America allegedly provided calculations of benefits of account holders below industry averages, potentially resulting in significantly lower benefits to employees/beneficiaries of the State of Illinois/University of Illinois; and

Whereas,	The goal of the State of Illinois/University of Illinois is to ensure that AIG-Sun America complies with ethical marketing techniques, utilizes ethical standards of customer service, and provides timely and reliable calculations of benefits for the employees and retirees (and their beneficiaries) of the State of Illinois/University of Illinois;

Be it resolved by the UIUC Senate that
	
The University of Illinois Benefits Center and other appropriate administrative authorities in conjunction with the Illinois State Attorney General’s Office should hereby require at the expense of AIG-Sun America the designation and/or de novo establishment of specific State of Illinois officials to:

1.	Check and verify the calculations of AIG-Sun America, and

2.	Review and monitor the marketing of AIG-Sun America, and

3.	Provide for expeditious and efficient remedies safeguarding the interests and rights of employees/beneficiaries of the State of Illinois/University of Illinois.

Senate Committee on Faculty Benefits
Barclay Jones, Chair
Jenny Barrett
Norm Denzin
Joseph Goldberg
Harry Hilton
Jonathan Keeble
Michelle Morganosky
Kenneth Andersen, Ex officio
James Davito, Ex officio
Michael Grossman, Ex officio
Terry Jobin, Observer
Mary Ellen O’Shaughnessey, Ex officio (designee)
Judy Rathgeber, Ex officio (designee)