House Education Committee accuses union of exploiting teachers through retirement scheme

A Congressional committee is investigating the retirement system of the nation’s largest teachers’ union, which is allegedly exploiting member benefits for financial gain.

The U.S. House Education and Workforce Committee, chaired by Rep. Tim Walberg, R-Michigan, sent the National Education Association (NEA) a letter Sept. 29, requesting documentation dating as far back as 2005.

The letter accuses the union of “compromising the integrity of union workers’ retirements,” saying the NEA may be using its affiliate, the NEA MB (Member Benefits), “as a revenue conduit at the expense of teachers’ and other union members’ retirement security.”

The NEA, which has nearly 3 million members as well as a large network of state and local affiliates, gets a financial kickback when its members enroll in sponsored services, according to the letter. 

“NEA MB pays these associations ‘up to $15 for each new participant and up to $0.80 per year for each ongoing participant’ in certain NEA‑sponsored financial service programs,’” the committee explains. 

“Such per‑capita incentives create concerning conflicts of interest and cast doubt on whether union members are receiving impartial advice about their retirement savings.” 

Teachers’ unions often prioritize political agendas over education, committee members note. 

“We’ve seen the NEA repeatedly disregard the interests and concerns of their own members to enrich union leaders or promote political agendas that do nothing to help America’s teachers and students,” said Chairman Walberg. 

“It is unacceptable that America’s largest teachers’ union is choosing to enrich itself at its own members’ expense.” 

The NEA has donated millions to left-wing political activism, including pro-abortion and pro-LGBT groups, and directly to Democrat campaigns. 

Aaron Withe, CEO of the workers’ rights group Freedom Foundation praised Walberg and criticized unions for lining their pockets with teachers’ dollars. 

“If the NEA has been profiting by steering members into high-fee retirement products while paying state associations up to $15 per new participant, that’s a clear conflict of interest and a betrayal of teachers’ trust,” Withe said in a statement. “Teachers deserve fiduciaries who act solely in their best interests, not union officials who may be enriching themselves at members’ expense. 

“We commend Chairman Walberg for demanding transparency and accountability.” 

Earlier this year, Walberg and the Education and Workforce committee also launched an investigation into whether the NEA was encouraging antisemitism among its members and in classrooms.