Nonprofit, nonpartisan journalism. Supported by readers.


Duluth city pension screw-up lowers some benefits, requires repayments

City employees in Duluth are getting some unsettling news this week: an overpayment in pension funds means some workers will see lower pension benefits when they retire, and some retirees will have to pay back some money they’ve already received.

The city will get its money back now that the error was discovered.

About 1,880 city employees unknowingly overpaid into the retirement system since at least 1997, city officials said. Those employees who overpaid will be reimbursed, too, but their future retirement benefits will be lower than they’d anticipated.

And those retired workers who have been getting too much in their checks, will have the overage deducted from their checks over time.

The Duluth News Tribune has the story.

You can also learn about all our free newsletter options.

Comments (1)

  1. Anonymous Submitted by Anonymous on 10/24/2008 - 11:09 am.

    If there is any accountability in the system, somebody ought to be fired!

Leave a Reply