The struggles and frustration have just begun for retired Bethlehem Steel workers.
“I really don?t think this is going to end soon,” said Kenneth Carroll Sr., a 73-year-old White Marsh resident who retired from the steel mill in 2001 after more than 44 years of service.
Carroll and about 3,000 other Bethlehem Steel retirees are receiving letters saying their pensions are being cut because the Pension Benefit Guaranty Corp. mistakenly overpaid them. About 1,100 of the retirees have been told they have to pay back money they have already received.
After Bethlehem Steel filed for bankruptcy in 2001, thousands of retirees had their pensions folded into the government-funded PBGC, with many seeing their monthly payments cut. The agency admits it made mistakes in calculating the payments of some, paying either the full amount they would have received from Bethlehem Steel, or more than should have under the federal plan.
“It was a hard, hot job, but I did the job and I earned my money,” Carroll said. “It?s a shame the way we?re being treated.”
Carroll said the PBGC informed him his pension will be lowered by $57.69 beginning in January for the next 10 years to make up for overpayments he received in 2003.
“Some people still haven?t gotten the letters or the bad news,” Carroll said.
Those who receive letters have 45 days to appeal, and their benefits will not be changed until any appeal has been resolved. To appeal, retirees must write PBGC a letter explaining why he or she feels the payment was miscalculated, said LeRoy R. McClelland Sr., who worked at Bethlehem Steel for 42 years and retired in 2001.
“If they don?t appeal, they?re out of luck, and that?s sad,” said the 69-year-old McClelland, who was told he owed the PBGC $6,000. “It?s a frightening thing.”
Charles E.F. Millard, acting director of the PBGC, said last week the payment-collection process will be fair and respectful.
“We understand very well that we are dealing with individuals and families who have worked hard for their pension and count on the insurance program for their retirement security,” Millard said in a statement.
The Associated Press contributed to this article.
