Resolving Pension Puzzles

The Western States Pension Assistance Project (WSPAP) is a project of Legal Services of Northern California and the California Senior Legal Hotline. WSPAP has helped clients recover more than $3.7 million in retirement benefits since opening its doors in 2007.

“We help people file claims after they’ve been denied benefits, find lost pensions, deal with divorce and survivor issues, and generally understand their rights related to retirement benefits,” said attorney Justin Freeborn, who directs the project. “Pension plans can be very complex and difficult to understand without knowledgeable assistance. Resolving issues and tracking down benefits has become even more difficult in this age of corporate mergers and bankruptcies.”

A 71-year-old woman, for instance, called because her pension plan had denied her access to her 401(k) account. The plan representatives told her they were going to use the funds to offset a $32,000 overpayment that had been mistakenly paid her as part of the small pension she earned during a long career in the retail industry. The company told the woman – much to her surprise – that she had been overpaid for the last 15 years. The woman had a very modest income and needed the funds in her 401(k) account for basic living expenses.

Freeborn intervened on her behalf, submitting an administrative claim to waive the overpayments and allow her access to the 401(k) account. He successfully argued that it was not proper to require the woman to repay funds she had unknowingly received due to the plan’s mistake. He also argued that pension plan representatives could not deny her access to a completely separate account.

The Western States Pension Assistance Project (WSPAP) is a project of Legal Services of Northern California and the California Senior Legal Hotline. WSPAP has helped clients recover more than $3.7 million in retirement benefits since opening its doors in 2007.

“We help people file claims after they’ve been denied benefits, find lost pensions, deal with divorce and survivor issues, and generally understand their rights related to retirement benefits,” said attorney Justin Freeborn, who directs the project. “Pension plans can be very complex and difficult to understand without knowledgeable assistance. Resolving issues and tracking down benefits has become even more difficult in this age of corporate mergers and bankruptcies.”

A 71-year-old woman, for instance, called because her pension plan had denied her access to her 401(k) account. The plan representatives told her they were going to use the funds to offset a $32,000 overpayment that had been mistakenly paid her as part of the small pension she earned during a long career in the retail industry. The company told the woman – much to her surprise – that she had been overpaid for the last 15 years. The woman had a very modest income and needed the funds in her 401(k) account for basic living expenses.

Freeborn intervened on her behalf, submitting an administrative claim to waive the overpayments and allow her access to the 401(k) account. He successfully argued that it was not proper to require the woman to repay funds she had unknowingly received due to the plan’s mistake. He also argued that pension plan representatives could not deny her access to a completely separate account.

After extensive negotiations, the company agreed to waive the entire $32,000 in overpayments, and our client was given access to the full balance in her 401(k) account.

WSPAP is part of a nationwide network of pension counseling projects. It is primarily funded by a grant from the federal Administration on Aging and serves callers of all ages and income levels in four states – California, Arizona, Nevada and Hawaii.

The project can assist clients with issues related to retirement benefits – including traditional pensions, 401(k) accounts and other benefits – sponsored by private companies, unions, railroads and government agencies.

For assistance, call the project toll-free at 866-413-4911. In Sacramento, call 916-930-4911. Questions can also be submitted by email through the Senior Legal Hotline’s website: www.seniorlegalhotline.org.

The Faces of Social Security

In the last few months LSNC advocates have worked diligently to secure benefits for several indigent clients with disabilities who previously relied on General Assistance as their only source of income. Often these clients have very severe mental and/or physical limitations and little or no job skills. LSNC Advocates regularly represent such clients at admin hearings and on appeals in federal court, securing benefits for clients like: Gregory*, a man in his late 50’s who has a history of serious heart disease and cancer, Mary* is a woman in her late 40’s who suffers from both physical and mental impairments, and Bill*, also in his late 50’s with a variety of orthopedic impairments, and Annie* who is in her late 50’s and has a variety of mental impairments, including major depression. As an Administrative Law Judge wrote in one decision, “…the occupational base for unskilled work has been substantially eroded to such an extent that there would not be a significant number of jobs remaining in the national economy that the claimant is capable of performing.” An interesting finding that speaks to the jobs outlook of many of our clients.

Positive Outcome in Predatory Lending Case

Our client, Archie*, came to LSNC when his home was foreclosed upon and he needed assistance defending an eviction action. Due to serious disabilities Archie lives on SSI. He lives in his childhood home, in Del Paso Heights, which he owned outright until 2007. That year, with his home in need of repairs, our client was sold a loan with 12% interest, a $60,000 balloon payment, and $8,000 in fees. He told the lender that the loan amount was much more than he required, but the broker arranged an $80,000 loan anyway. The lender promised that the repairs would be made and that Archie would be given the balance of the loan proceeds. The repairs were made but he never received the surplus. The house was in foreclosure and Archie was facing eviction.

After nearly a year of litigation and with the aid of LSNC advocates, Archie was offered a favorable settlement including the return of the title to his house. He also got help stabilizing his income. Archie can now afford to stay in his childhood home for a long time to come.

Employee Spotlight

Herb Whitaker comes from the Cajun Country of south Louisiana. Shortly after obtaining his law degree from the Louisiana State University Law Center in 1977 he began a career in legal services. He worked for Acadiana Legal Services for six years before transferring to Micronesian Legal Services Corporation, where he worked for five years at the office in Truk Lagoon and on the island of Saipan in the Commonwealth of the Northern Mariana Islands. Herb then moved to Auburn, California in 1989, and he has worked as a Managing Attorney for LSNC ever since. In addition to his regular legal services work, Herb serves as the co-chair of the Rural Task Force of the California Access to Justice Commission, which helps promote education regarding the challenges of providing legal services in the rural areas of the state. Herb also teaches Tai Chi at the Canyon Spirit Yoga Center in Auburn and Business Law at Sierra College. Herb is now second only to Gary Smith, our Executive Director, in LSNC tenure among the attorney managers!

Congratulations goes to…

Legal Services of Northern California’s Executive Director, Gary Smith, has been selected as the 2010 recipient of the Loren Miller Legal Services Award from the State Bar of California! The Loren Miller Award is given annually to a lawyer who has demonstrated long-term commitment to legal services and who has personally done significant work in extending legal services to the poor.

As California Assembly Member Dave Jones wrote in his letter of support for Gary’s nomination, “Gary Smith stands out among all the rest. His tremendous talent and skill as a lawyer coupled with his deep and abiding commitment to helping low income families and individuals make this a well deserved award.”

One of Gary’s fellow legal services program directors, Neal Dudovitz of Neighborhood Legal Services of LA County, wrote, “Deep down at his core what drives Gary is that he cares passionately about people – his family, his friends, his co-workers, his neighbors, his clients and his community. He has dedicated his life to them and they are always at the heart of everything he does; it is a trait that I suspect he shares with Loren Miller and the many community leaders that have been previous recipients of this award.”