Schools chief pension deal found wrong

BUTTE – The Ennis School District and its superintendent violated state rules when he retired early then worked for the district as a contract employee for a decade while collecting retirement benefits, the Montana Teachers Retirement System alleges.

The district and Doug Walsh owe the system more than $760,000 for retirement benefits Walsh was not eligible to collect and money that should have been paid into the retirement system while he continued to work, the Montana Teachers Retirement System said in an Aug. 1 letter to the school district’s attorney and an attorney for Walsh.

The Montana Standard reported Friday the Montana Teachers Retirement System reviewed Walsh’s retirement plan after several district residents raised questions.

“TRS is entitled to recover the full amount of benefits paid to Mr. Walsh to which he was not legally entitled, plus interest, and the full amount of unpaid employer and employee contributions on the earned compensation paid to Mr. Walsh,” the letter said.

The state agency said Walsh owes $572,125 while the district owes $188,689.

School district attorney Elizabeth Kaleva was not available for comment while Walsh’s attorney, David Dalthorp, declined comment.

Lisa Frye, an Ennis school board member, said the district needs to review the Montana Teachers Retirement System findings and get a second legal opinion on whether the district is at fault. She said the issue is “tearing our community apart and I don’t like that.”

Walsh retired as Ennis superintendent in June 2001. He was immediately rehired by the school board as a contract employee, serving as a one-third-time superintendent and as the bus supervisor. At the same time, he began drawing retirement benefits.

State officials also found that for several years Walsh received a $12,000 performance bonus, without the benefit of a job evaluation.