McLaren Bay Region pension error affects hundreds of retirees

McLaren Bay Region is working to fix an error that affected pension benefits for dozens of employees.

According to a McLaren Bay Region news release, an error in calculations resulted in underpayments to some employees and overpayments to others.

70 employees who retired late - after the age of 65 - were underpaid for a total of $1.1 million.

213 employees who retired early â?? before the age of 65 - were overpaid for a total $832,000.

Retirees who were overpaid are being asked to pay back overpayments in a lump sum beginning March 1, or they can choose reductions in monthly payments.

Also beginning March 1, those who were underpaid can choose a lump sum or have their monthly benefit increased until the underpayment is repaid.


Beginning March first retiree's are asked to pay back overpayments in a lump sum, or choose for reductions in monthly payments. Those underpaid can choose a lump some or an increase in monthly benefits. Pension Rights in Washington say itâ??s important to know your rights in a situation like this, especially if retiree's were overpaid. If thousands of dollars are owed back to McLaren there is help and information out there.

"The U.S Department of Labor has issued something called an advisory opinion which says they may consider waiving the payment in certain situations and still be within its judiciary duty. But they can do this in an equitable fashion. Sending someone a bill saying you owe us a lump sum of this many thousands of dollars and we won't pay you your benefit until you pay it is a completely outrageous solution,â?? said Legal Director Rebecca Davis from the Pension Rights Center in Washington D.C.

The pension advisors in Washington say getting all the information is the first step. How were the payments miscalculated, what are your options for payment, and are the new calculations correct?

You can read successful cases here:

Also, the Mid-America Pension Rights Project in Lansing, provides free legal counseling to anyone with a question about their traditional pension, 401(k) plan, or other employer-based retirement plans.