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District Court Finds Pension Plan's $725,000 Refund Request for Overpayment Reasonable
Bloomberg BNA
Jan. 7, 2014
"The plan's third-party administrator initially determined that the participant was owed a lump-sum payment of $782,733 upon reaching retirement age and paid out that benefit. However, the plan later informed him of the mistake, notified him of his recalculated benefit of $57,232 and demanded refund of the $725,501 overpayment. [The U.S. District Court for the Northern District of New York] granted summary judgment to the plan, finding that it didn't abuse its discretion in interpreting the plan terms to discredit 20 years of service that the participant spent employed by a separate company that was merged with the plan sponsor less than two years before the participant left his employment with the sponsor." [Baackes v. Kaiser Found. Health Plan, Inc., No. 1:12-cv-00583-FJS-RFT (N.D.N.Y. Jan. 3, 2014)]
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