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Duluth City Council to pay off retirees’ overpayments | Duluth News Tribune | Duluth, Minnesota

Published December 19, 2012, 05:15 AM

Duluth City Council to pay off retirees’ overpayments

City retirees received a welcome bit of holiday news Monday from the Duluth City Council.

By: News Tribune staff, Duluth News Tribune

City retirees received a welcome bit of holiday news Monday from the Duluth City Council.

The council unanimously voted to support a plan that would pay off about $305,000 in overpayments 108 retired city employees received from the Public Employees Retirement Association.City retirees received a welcome bit of holiday news Monday from the Duluth City Council.

The city is in line to receive about $395,000 from PERA for excess contributions it made to the fund in the past and will apply a portion of those funds to cover the debt. Alternatively, PERA would have sought repayment from the affected retirees.

Retiree Mark Wick said he personally would have been on the hook for $9,000 to $10,000 without help from the city. He said the overpayments were a result of miscalculations that were not the fault of retired workers caught up in the mess.

Current city employees also should receive repayments for excess funds they paid into PERA accounts.

“I think this is a win-win situation,” Councilor Sharla Gardner said. “It makes the retirees whole, it makes current employees whole, and the city still gets $90,000.”

The city instead could have chosen to pocket the entire $395,000, leaving affected retirees to repay the fund on their own.

Duluth City Council to pay off retirees’ overpayments | Duluth News Tribune | Duluth, Minnesota.

One comment on “Duluth City Council to pay off retirees’ overpayments | Duluth News Tribune | Duluth, Minnesota

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