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Voice: IID inmates running the asylum

March 17, 2001

The inmates were running the asylum when Imperial Irrigation District had three golden handshake programs, i.e.

— Two TRIP programs

— One exit program

The inmates were running the asylum when IID allowed lump-sum pay-outs of its actuarially funded retirement program.

The development and adoption of the new pension plan was a classic, i.e.

— The technical advisory group and the board study group joining forces.

— The proposal being heard and acted on at four consecutive special board meetings where in the open sessions followed two hours of closed sessions (and effectively eliminating public participation).

The new pension plan includes:

— Change to a fully funded 401(a) plan.

— Borrow $75 million.


If the public had been provided the opportunity to participate, these would have been my comments:

(1) Borrowing money to finance the operating budget runs contrary to the principles of budgetary accounting.

(2) Stay with the actuarially funded plan.

(3) Eliminate:

— Golden handshake programs

— Lump-sum pay-outs

(4) change the "last five-year" policy and cap the age at 55.

(5) Establish effective IID management of the retirement plan and develop a plan to eliminate the existing unfunded liability problem (over several years).

(6) Continue the 401(a) retirement plan for new employees.

(7) Do not warrant nor in any other way assure the employees that the 401(a) plan will provide the same benefits as the existing actuarial plan.

(The lady stated on a radio talk show program that her father's IRA plan that was worth $50,000 is now worth $25,000).


El Centro

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