Hospital tells retirees to hold off on pension error repayments - KPTV - FOX 12

Hospital tells retirees to hold off on pension error repayments

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McLaren Bay region is telling retirees to hold off on paying back thousands of dollars due to an error with their pensions.

McLaren is filing a proposal with the IRS to correct the overpayment error. If the hospital can strike a deal with the federal government, then retirees won't owe anything. It will take the IRS 12 to 18 months to look at this new option.

About 213 employees were overpaid a total of approximately $832,000. Retirees were initially asked to pay back the money along with interest.

McLaren held a series of three meetings for retirees to explain the situation. The company also apologized for the way the error was handled.

"It's not fair that we should pay for somebody else's mistake and they're charging us quite a bit," said Helga Doan, retiree.

About 70 retirees were underpaid. They will receive checks to make up the difference. A representative with McLaren said the checks will go out March 1.

A hotline is set up to answer any questions. Retirees can call 1-866-238-2419, extension 1.

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