EQUITABLE FINANCIAL Life Insurance Co. agreed last month to pay a $50 million fine for engaging in fraud. According to the Securities and Exchange Commission, since at least 2016, Equitable gave the false impression to 1.4 million investors that they were paying $0 in fees and expenses for their variable annuities. The majority of the investors were educators saving for retirement.
The SEC found that Equitable’s statements “listed only certain types of fees that investors infrequently incurred” and that “more often than not the statements had $0.00 listed for fees.” The commission concluded these were “misleading statements and omissions” of the true fees investors actually paid.
ACROSS THE COUNTRY, teachers are losing out on hundreds of thousands of dollars in retirement money because of the fees in their 403(b) plans. When I tell this to most teachers, they look at me with a level of skepticism that should be reserved for the salesperson who signed them up for a 12-year variable annuity contract.
“That can’t be true,” they say. “The district wouldn’t allow this. The union wouldn’t allow this. Everyone I know uses that company.