"Costly new Retirement Medical Benefits?"

A misrepresentation by Harris and Hood


This web page is http://obri.net/rl/retmed.html
a web page by Jay O'Brien
10/13/02
This message sent to the Rio Linda Net on October 13, 2002, summarizes the issue:

-------- Original Message --------
Subject: [RL] "Costly new Retirement Benefits" (not true)
Date: Sun, 13 Oct 2002 19:07:47 -0700
From: Jay O'Brien <jayobrien@att.net>
To: Rio Linda Elverta Mailing List <riolinda@vrx.net>

Rio Linda Net, RLECWD Ratepayers and constituents,

As I am presently in office as a Water Board Director, it is my fiduciary responsibility to inform constituents of the retirement benefits misrepresentations contained in the recently circulated Mary Harris and Cathy Hood election flyer.

The Rio Linda/Elverta Community Water District Board enacted Resolution 2002-10 at our September 16, 2002 meeting. The Resolution defines the previously unwritten District policy on medical insurance benefits for retirees. These benefits were not specified in the past and our present three retirees retired at different times under different Boards. The Resolution was enacted to guarantee what had been agreed to the present retirees and to close several potentially costly loopholes that existed because there was no written policy.

The Resolution enacted does not create any new benefits or incur any new cost as asserted by Harris and Hood.

The Harris - Hood flyer says,
 "How much do you think this will cost you the ratepayers? As ratepayers are you aware that the current board has implemented costly new Retirement Medical Benefits?"
This misrepresentation of facts by Harris and Hood was covered in detail on the Rio Linda Net community mailing list in September. Harris' assertion on the Net, Board President Doug Cater's response to the Net and my statement of facts that followed on the Net is included below.

The Harris - Hood flyer also asks,
"Did you know that Water District employees can retire at age 50 with only 5 years of service and receive full medical coverage for themselves and their family for the rest of their lives?"
The "age of fifty" statement included in Resolution 2002-10 is included to be in keeping with the California Public Employees Retirement System (PERS). The "five years of service with the District" statement was added to close a loophole. For example, it was possible for someone with 25 years of public sector service, already qualified for a substantial retirement under PERS, to come to work for our District for one day and then immediately decide to retire. Our previous unwritten practice could have qualified that person for retiree medical benefits! The Resolution now requires the person to have at least five years of service with our District before qualifying for medical benefits from our District after retirement.

Resolution 2002-10 itself does not confer the right to retire after five years; the number of years service necessary to qualify for retirement is part of the PERS retirement calculation.

See my statement of facts messages (below) of September 25-26 for details on other loopholes the resolution closed.

As a Water Board Director, I participated in the decision to enact resolution 2002-10. It was a good decision.

Copies of the agenda item, the adopted resolution and related correspondence may be viewed (below) at http://obri.net/rl/retmed.html .

Jay O'Brien

Literally hundreds of flyers were distributed, placed on mailboxes and homes in the Rio Linda/Elverta Community Water District from candidates Mary Harris and Cathy Hood. I received my copy on October 5, 2002, between 8AM and 11AM.

Harris Hood Flyer: Retirement medical benefits

The flyer says "How much do you think this will cost you the ratepayers? As ratepayers are you aware that the current board has implemented costly new Retirement Medical Benefits? Did you know that Water District employees can retire at age 50 with only 5 years of service and receive full medical coverage for themselves and their family for the rest of their lives?"

The action referenced by Hood and Harris was taken at the September 16, 2002, Water Board meeting.
This is the agenda item, as included in the Board meeting agenda:
September 16, 2002 Item #5


This is the resolution that was passed unanimously (Director Blanchard was absent) at the September 16, 2002 Board meeting:


Resolution 2002-10



Mary Harris, in her message below to the Rio Linda Net, misrepresents the action taken by the Water District Board:

-------- Original Message --------
Subject: [RL] Golden 55/ Early Retirement may well be defined in RL
Date: Sun, 22 Sep 2002 20:17:03 -0700
From: "Mary Harris"
To: "Rio Linda/Elverta" <riolinda@vrx.net>

Dear Rio Linda/Elverta Residents,

I attended the Rio Linda / Elverta Community Water Board meeting Monday evening September 16/2002; the Board with the exception of Bob Blanchard (who was not in attendance), implemented a costly new Retirement Medical Plan for current employees, and prior General Manager, who had only six years of service with the District... Board Members please correct me if I am wrong and explain. Can we meet the District financial security if we continue to provide these extravagant benefits listed below?

Ratepayers:
    a.. Did you know that the water district employees could now retire at age 50 with only 5 years of service and receive full medical coverage forthemselves, their spouses plus their dependents?
    a.. How much do you think this will cost you the ratepayers?

Board Members:
    a.. Does this mean that we could have a new group of people come in every 5 years and the District will be responsible to pick up the payments for Medical Benefits?

Sincerely

Mary Harris
>From the Rio Linda mailing list
Water District Board President Doug Cater provides the first response to Harris:

-------- Original Message --------
Subject: Re: [RL] Golden 55/ Early Retirement may well be defined in RL
Date: Mon, 23 Sep 2002 06:35:16 -0700
From: "Doug Cater"
To: <riolinda@vrx.net>

Mary-
As we stated to you in the last board meeting, this is the standard PERS [California Public Employees Retirement System] retirement.  A lot of public agencies and special districts have PERS retirement including Rio Linda Union School District. I am very disturbed at the way you have distorted the facts.  The fact is that we did not "implemented a costly new Retirement Medical  Plan for current employees". The plan already existed.  We simply reviewed the existing plan and made some minor changes that could possibly save the district some money in the future.

All of our meetings are video taped and available at the Water District Office for everyone's viewing. I suggest that anyone who wants to find out the truth,  to take a look at the tape and see for yourself what really took place.  Mary please try to run a truthful campaign. I will be out of town for a couple of days and may not be able to respond to any e-mails.  Please do not beat me up to bad until I get back.

Doug
>From the Rio Linda mailing list
I attempted to summarize the facts. Unfortunately I omitted one, which I added with a follow-up message.
-------- Original Message --------
Subject: [RL] RLECWD retiree policy: Facts
Date: Wed, 25 Sep 2002 15:50:32 -0700
From: Jay O'Brien <jayobrien@att.net>
To: Rio Linda Elverta Mailing List <riolinda@vrx.net>

Facts:
Jay O'Brien
>From the Rio Linda mailing list

-------- Original Message --------
Subject: Re: [RL] RLECWD retiree policy: Facts
Date: Thu, 26 Sep 2002 10:28:23 -0700
From: Jay O'Brien <jayobrien@att.net>
To: Rio Linda Elverta Mailing List <riolinda@vrx.net>

Another fact I have been reminded about that is worth stating: Jay
>From the Rio Linda mailing list