DAK files federal suit to get back pension overpayments

By Wayne Faulkner
Wayne.Faulkner@StarNewsOnline.com

DAK Americas' pension plan overpaid 15 former employees of its shuttered Navassa plant and now wants that money back, according to a suit filed Thursday in federal court.

DAK's Retirement Committee, which administers the plan, said in the suit that a miscalculation of benefits caused it to pay too much to the employees, all of whom elected to receive lump-sum payments rather than an annuity. The manufacturer of PET resins closed its Brunswick County plant last year and 350 company employees lost their jobs.

Individual overpayments ranged from $8,640 to $215,922 and totaled $1.851 million, according to the suit filed in US District Court for Eastern North Carolina.

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Don't think for 1 minute that big corporations won't do their damndest to screw employee's out of their benefits in other situations as well. (AKA... (i.e.) Disability Retirement Benefits). They most certainly will and have been known to...and in a New York minute. Then, the X-employee has to hire a Labor Attorney, and so forth and so on, to get what's rightfully theirs. Big corporations bank on the employees giving up due to lawyer fees involved...so now they know how it feels. But will they learn from their mistakes? I seriously doubt it.

Now that a lot of Huge Corporations have the "30 Something" crowd running the show in the Human Relations Management departments...let those corporations deal with (and suffer) with the fiasco they've created...putting into place inexperienced labor...in the name of "Saving a Dollar" in salaries. I'm sure there is a lot of directing from the upper HR class on how to twist and turn legal issues to save $$$.
Sooner or later it's bound to backfire...and looks like it just did. Somewhere, and some place, there are Documents signed by both parties stating those retirement benefits prior to this "Over-payment".
Computers don't miscalculate...but those humans at the helm in HR do.

the money is probably spent already-how is the company going to recoup that money? these people were laid off and most probably are enjoying their retirement.

Sorry. If the company made the mistake, it is the company's problem. The money paid should stay with those that received it.

about the miscalculation...Baker & Slaughter started advertising about how they can help.