Q: My husband worked at a steel company for 37 years and retired in 2000. He was receiving a pension of approximately $1,800 a month. About two or three years ago he was sent a letter saying that they had overpaid him and were cutting his pension to $1,104.30 a month. Can this be done?
He went to see our council representative, but they could not help him. He has called the pension office, but only gets the answering machine. The company went bankrupt and another steel company took over.
Recently, we spoke to his nephew, who also worked at the previous company and retired with 30 years of service. He received a check from the pension office for $10,000 claiming he was underpaid. His pension now is $1,450 a month.
We have a son who is on disability who has the same name as my husband, but a different Social Security number, and we thought maybe they got him mixed up with my husband. To me, this does not seem right, but we don’t know where to go to get answers. Can you help us out? Is there a time frame in pursuing this situation? This has truly made a hardship on our family. — Shirley, via email
A: I certainly can sympathize with your situation, and I don’t understand why you are being stonewalled. When you say your “council representative,” I assume you mean your union representative. He or she should be able to help you.
The pension office approach is complicated by the fact that your company went bankrupt and its business has been transferred to another entity. The situation with your nephew doesn’t have anything to do with you and your circumstance. As to your son who is on disability, it’s very unlikely but possible that he’s been mixed up with your husband, particularly if he resides at the same address.
Unfortunately, there is no way I can sort this out. Given the numbers and the time period, which is not going to help because two or three years have passed, you should seek counsel. There are a number of attorneys who specialize in matters of this kind and know how to straighten them out. You shouldn’t have to pay unless the matter is resolved in your favor. That’s not always the case; some attorneys will insist upon a retainer, but you should be able to find one who will handle the matter on a contingency basis.
Q: I have just inherited $300,000 from my brother who recently passed away. I am 72 years old. I don’t have any use for the money. Where should I put this money? How do I avoid paying taxes on this amount? What do you suggest I do with it? — S.W., via email
A: One thing you might want to consider is tax-free bonds. There are two types — general obligation and revenue bonds.
General obligation bonds are repaid by the community that issued the bond, including raising the money through taxation if need be. Revenue bonds will be paid for not from the general purse, but from the revenue generated by the hospital, stadium or whatever project the bonds funded. Revenue bonds, by and large, are not as safe as general obligation bonds.
You are going to have to do your homework before you decide which of these, if either, you want to consider. Personally, I believe that properly purchased and insured tax-free bonds still can represent a very good investment.
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