Pension mistake results in thousands of dollars of overpayments

By: NewsCenter 16 Staff Email
By: NewsCenter 16 Staff Email

BENTON HARBOR Former Benton Harbor city employees have been raking in a lot of extra cash from their pensions.

The Herald Palladium reports that the cash-strapped city had mistakenly been rounding up the pension percent for 98 retired workers.

For example, if a worker who made $55,000 a year was collecting a 2.5 percent pension, that percentage was actually rounded up to 3 percent, resulting in an extra $4,000 each year.

Emergency manager Tony Saunders says the city is legally allowed to recoup that money, but he doesn't plan to do that. He will likely just lower future pension payments to where they are supposed to be.

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