It is being reported (PlanSponsor.com) that plan administrator, Retirement Services, miscalculated benefit payments for members of IFPTE Local 21, from the Bay Area of California, that may total $1.5 million. The miscalculation was discovered – get this – in 2011, but according to the article beneficiaries continued to receive the over-payments and they were not informed that their benefit may be overstated until April 2018!
Now, the San Jose Retirement Board is considering their options, including the possibility that retired employees and/or their surviving beneficiary will have to repay the excess benefits plus annual interest. Are they kidding? Who was asleep at the switch for the last 7 years?
Not surprisingly, IFPTE Local 21 is not happy about the prospect of having to repay this excees benefits and as a result, they have joined forces with AFSCME Local 101 to protest this possibility. Let’s hope that they are successful.