Legal Question in Business Law in Minnesota

Repaying $300,000 of lump sum retirement

My husband retired in Jan 2002 and got a lump sum payment of +$289,000 from the company headquarters located in Cleveland, OH. Now almost five years later, he got a certified letter stating he need to repay this money with interest minus the amount of his monthly annuity because under IRS rules, he was a highly compensated employee and should have gotten a monthly check instead of a lump sum. He filed all the forms provided by the company which provided an option of getting a lump sum or monthly amount. Nothing in the retirement package from the company refers to highly compensated employee. Does this also constitute extortion, and since it is crossing state lines, is this a federal crime by the company? The company states in the letter that he ''at this point, did nothing wrong.'' Does the company have to correct the situation (if need be) between them and the IRS. We know that a couple high level employees have recently been fired and at least one negotiated a lump sum settlement. We believe that they want this money of my husband's back to help fund the retirement fund and should be return the money, the monthly amount would end soon because of ''triggering events'' that the mention in the letter.


Asked on 12/11/06, 1:23 am

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Repaying $300,000 of lump sum retirement

I would need to undertake document review to fully assess this legal matter, but at first impression, almost 5 years have passed and any rights the company may have had or ability to rescind their action may be waived or lapsed.

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Answered on 12/11/06, 7:27 am


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