More than 200 McLaren Bay Region retirees who were affected by an error in the calculations of their pension are getting some answers.
The employees were asked to re-pay a total of more than $800,000 beginning March 1 because they were overpaid in pension benefits and 70 retirees were underpaid a total of $1.1 million.
McLaren released the following statement:
" McLaren Bay Region has elected to pursue an alternative to the initial information that was sent to retirees affected by the pension miscalculation.
" McLaren Bay Region will file a proposed amendment with the IRS which, if accepted, would correct the overpayment error.
" No one will be asked to repay any overpayments while this new option is being evaluated by the IRS, which could take 12-18 months. This will not affect any underpaid adjustments.
" On March 1, for the early retirees (before age 65) who were overpaid, the pension benefits will be lowered to comply with the original provisions of the plan.
" McLaren Bay Region regrets the error that occurred in calculations of benefits for late retirements (those who retire after age 65), resulting in under payments.
" For those who retired early (before age 65) the additional subsidy benefit was not being reduced, resulting in over payments. "