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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 117370
Experience:  20+ Years of Employment Law Experience
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Counsel, 27 years ago I retired from a civil service job in

Customer Question

Hello Counsel, 27 years ago I retired from a civil service job in NY after 25 years, I decided to retire, I took out what they call a pension loan for 6000.00 just before retirement, for the first time in 27 years, the city now says that they made an error in my monthly check, and they want me to repay them almost 14,000.00, is there a statute on that amount of time?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am afraid that under federal laws, ERISA, the plan administrators owe a duty to the plan to recoup any money that has been paid out in error. There is no statute of limitations on a recoupment action in this type of case, because the money continues to be due and owed to the plan and it is for this reason there are many recoupment actions that go back many years. The plan has a continuing legal duty to recover money owed to the plan that may have been paid out in error and as such the courts hold that based on that fiduciary duty and the continuing nature of the debt, there is no statute of limitations and the NY 6 year statute of limitations for normal breach of contract actions has been found to not apply. The plan administrator DOES have the ability to waive interest or penalties if the participant from whom recoupment is sought can prove significant financial hardship but that is up to the plan and you have to file an appeal of the recoupment amount to the pension board and ask them to reduce the amount you owe in over payment, but legally that is your only recourse and you would need to hire a pension law (ERISA) attorney in NY to assist you in filing that appeal.