December 3, 2007
UNIVERSITY OF ILLINOIS
FB.08.01 Resolution III Regarding AIG Sun America: Safeguarding the Interests of Employees and Retirees of the State of Illinois/University of Illinois
In 1999, Sun America (currently AIG Sun America) assumed Mutual Benefit Life retirement accounts from the State of Illinois/University of Illinois. While other universities and state agencies appear to be involved, the number of University of Illinois accounts was reportedly 1,038.
AIG Sun America has provided calculations that do not appear to comply with average standard calculations by industry leaders. Noting that even one complaint is one too many, the Senate Committee on Faculty Benefits has been advised of several complaints and concerns involving AIG Sun America accounts, including three substantive complaints. One complaint was resolved in 2007 by Springfield authorities in favor of the faculty complainant and adverse to AIG Sun America’s interpretation.
There were two unanimously-passed Senate Resolutions at the University of Illinois, expressing concerns regarding practices of AIG Sun America, specifically, FB.06.02 (April 24, 2006) and FB.07.01 (December 4, 2006), “Regarding AIG Sun America: Safeguarding the Interests of Employees and Retirees of the State of Illinois/University of Illinois.”
Whereas, The President of AIG Sun America Retirement Markets Inc. was sent a September 22, 2006 bipartisan letter from five Illinois State Legislators stating that AIG Sun America’s “communiqués to the University of Illinois Faculty Benefits Committee have been insufficient, generally nonresponsive, and unconvincing. We are extremely concerned about the treatment of these employees and that these concerns may be merely indicia of more widespread concerns. … [W]e stand ready to pursue other avenues should a mutually agreeable resolution not be forthcoming.”; and
Whereas, During October of 2007, follow-up bipartisan letters/communiqués were sent by eight Illinois State Legislators expressing additional concerns, paralleling those concerns expressed in the September 22, 2006 bipartisan letter.
Be it resolved by the UIUC Senate that
The UIUC Senate appreciates the bipartisan September 22, 2006 letter by five Illinois State Legislators sent to the President of AIG Sun America Retirement Markets Inc.
The UIUC Senate acknowledges and thanks the following legislators for their October 2007 bipartisan letters and communiqués to AIG Sun America:
The Honorable William B. Black
The Honorable Bill Brady
The Honorable Shane Cultra
The Honorable Michael Frerichs
The Honorable Naomi D. Jakobsson
The Honorable Dale Righter
The Honorable Chapin Rose
The Honorable Dan Rutherford
The UIUC Senate is grateful for the bipartisan efforts and diligence of these Illinois State legislators in safeguarding the retirement concerns of the employees and retirees of the State of Illinois/University of Illinois and their beneficiaries.
Senate Committee on Faculty Benefits
Barclay Jones, Chair
Jan Nederveen Pieterse
H. F. Williamson
Kenneth Andersen, Ex officio
James Davito, Ex officio
Michael Grossman, Ex officio
Rita Hunt, Ex officio (designee)
Terry Jobin, Observer
Judy Parker, Ex officio (designee)
Deb Stone, Ex officio (designee)