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Betty had been receiving an ongoing survivor benefit and Health Insurance Allowance from a public pension plan for over 10 years, ever since her husband passed away. She contacted the Western States Pension Assistance Project (WSPAP) after receiving an overpayment letter, which said that Betty’s husband was not due the Health Insurance Allowance, and his work history was erroneously stated in his pension calculation. This error caused an overpayment of nearly $15,000 in survivor benefits, and the plan demanded Betty return the full amount or have her monthly benefit reduced by more than 40%.
Facing the rising cost of living and poor health, Betty did not have the ability to fully repay the $15,000. The WSPAP attorney assigned to her case submitted a request for waiver due to the financial hardship and Betty’s lack of knowledge of the overpayment. The plan would not completely waive the overpayment, but they agreed to limit their recoupment from the total overpayment period to just the past three years of overpayments, and they reduced the total amount due to $4,000.
The plan also agreed to a five year repayment option where only $67 would be deducted each month. Betty was fully advised and agreed to these terms, and appreciated that her full amount would be restored after 60 months of this modest recoupment.
