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Some Port Hawkesbury pensioners have to repay money received in error

A decision has been reached in a case involving two pension administration firms responsible for the pensions of former employees of the Port Hawkesbury, N.S., paper mill when it was owned by NewPage. Details of the settlement were not…

A decision has been reached in a case involving two pension administration firms responsible for the pensions of former employees of the Port Hawkesbury, N.S., paper mill when it was owned by NewPage. Details of the settlement were not revealed, but the result is that pensioners who were overpaid due to miscalculation by the pension administrator will have to pay back 70% of the monies received in error.

According to a CBC News story posted on Dec. 19, Morneau Shepell, which took over the pension in 2012, accused the previous pension administrator, Aon Hewitt, of miscalculating the pensions of about 200 pensioners by roughly $5 million.

Paul Chang, speaking for Morneau Shepell, told CBC News: “The affected people received monies — they were overpaid, and they got more prior to 65 than they should have. What we’re asking back from those people is 70 per cent of those overpayments,” he says.

The money owed will be repaid over several years, by reducing the monthly pension payments to the affected pensioners.

According to a local newspaper, The Chronicle Herald, the repayment plan will affect 150 people and will result in the reimbursement of $2 million.

The NewPage Port Hawkesbury mill went into receivership and was purchased by Pacific West Commercial Corp. in 2012. It now operates as Port Hawkesbury Paper.