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BATON ROUGE, La. (AP) - More than 30,000 retired state employees
erroneously got their January pension checks in December, creating
a big headache for them and the pension system.
The Louisiana State Employees Retirement System sent some $40
million in electronic checks to 34,866 retiree accounts Dec. 22 a
month early.
“Somebody clicked the wrong button,” said LASERS spokeswoman
Robyn Ekings.
Retirees have begun getting postcard notices from LASERS
Executive Director Cindy Rougeou notifying them they would be
required to pay 2009 income taxes on the benefit should they choose
to keep their check.
“Alternatively, should you request that LASERS reclaim these
funds, we will make every effort to do so and reissue your check in
2010,” wrote Rougeou. If retirees choose that option, Rougeou said
LASERS must be notified by this coming Friday, she said.
Ekings said the process of reclaiming and reissuing checks is
not complicated. But, she said, it takes about six to seven
business days to complete because of verifications that must take
place involving retirees’ bank accounts.
New checks may not be issued until Jan. 21, Ekings said.
“This is something that was strictly human error. We are
putting in place safety mechanics, such as making it more
automatic,” said Ekings.
The mistake could not have happened “at a more difficult time
of the year with tax issues,” Ekings said. “We are really upset
about it.”
LASERS does not know how much money the pension system may have
lost in investment earnings by the pension checks going out early,
she said.
The mistake only affected electronic transfers, LASERS said.
Paper checks for retirees who do not receive their benefits
electronically were mailed Dec. 31 and dated Jan. 1.
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Information from: The Advocate, http://www.2theadvocate.com
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