How does the Imperial Imperial District avoid being held accountable for the retirement fund it told its employees would "provide a sound financial foundation in the form of a guaranteed income for life?" — quoted from IID policy and procedure No. 4292.
In 1985 our retirement plan was modified so employees no longer needed to contribute 3 percent of their wages. IID said it would pay our 3 percent plus the 4 percent it was already contributing into our retirement fund. At that time they also said they would repay our 3 percent paid into this account prior to 1985 at 4 percent interest. I never heard another word about our 3 percent (plus 4 percent interest) until I went to discuss my buy-out with a representative of our new provider. There I learned my 3 percent, finally, after 16 years, would be repaid but without interest.
Now I have learned IID never did pay into our retirement account any percentage of payroll. The only money paid into this account was for the projected cost to fund the next year's retirees. I don't believe I'm the only one who thought they were actually going to do as they said they would. Had they contributed as promised I don't believe our fund would be broke today.