Dispute with AK Steel may cost widow home
RELATED: Widow one of 5,000 in suit against AK Steel over benefits
Thursday, May 08, 2008
A possible miscalculation by AK Steel involving a widow's pension benefits could cost her more than $5,500 a year.
Hamilton resident Mary Clifton said after her husband Doug — a retiree from Armco Steel Corp. — passed away in March, she received communication from the company and the Social Security office indicating she was entitled to $676.16 a month in AK widow pension benefits.
Extras
Mary Clifton, the widow of a retired Armco employee, has been trying to get what she thinks is the correct amount of pension benefits due to her though AK Steel from her late husband. She says AK miscalculated her spouse benefits by around $600. Latest headlines
Get latest headlines via RSS feedsHowever, she said the last letter she received from the company stated she would receive $217.26 a month — a decrease of $458.90.
Clifton said if the issue is not corrected within the next three months, she will be forced to sell her home.
"If they made a mistake, it's a purposeful one," Clifton said. "(They should have been) honest up front. I don't think most of us are idiots and we prepare for retirement in a manner which would leave us our homes and our dignity — not like this."
AK Steel is involved in lawsuit with the firm Ruppert, Bronson & Ruppert Co., L.P.A. over the possible reduction of benefits of almost 5,000 widows and widowers of company employees.
Rupert Ruppert, the lawyer representing the widows in the case, said AK is required to pay widows half of their deceased spouse's pension benefit minus one half of their Social Security widow's benefit.
However, Ruppert said the company has been reducing the payment by one half of a spouse's entire Social Security benefit, including benefits earned from the widow or widower's own employment.
AK spokesman Alan McCoy said because Clifton may now be involved in the lawsuit which is ongoing, it would be inappropriate to comment on her pension issue or the case in general.
McCoy added the company maintains its calculation of the widow's benefit is fair and accurate.
Contact this reporter at (513) 705-2843 or jlander@coxohio.com.
