Via The Oakland Press,
By Dustin Blitchok, The Oakland Press
April 6, 2015
Internal Revenue Service rules could allow the 150-percent-funded Pontiac General Employees Retirement System to forgive overpayments made for 16 months to 600 retirees.
The IRS issued a clarification in March that indicates pension funds aren’t required to recover overpayments from retirees, said Nancy Hwa, communications director for the Washington D.C.-based nonprofit Pension Rights Center.
“Most of these retirees are on a fixed income,” Hwa said. “Given how well-funded that plan is, they should just reduce the pension to the correct amount.”
Whether the overpayments could be forgiven would depend on whether any Pontiac pension rules or state laws forbid it, Hwa said.