By Jeff Waters
The Suwannee Democrat
LIVE OAK, Fla. — The widow of a former Live Oak firefighter is responsible for returning more than $13,000 in pension payments, according to Live Oak City Attorney Erny Sellers.
Sellers wrote in a letter dated Oct. 26 that Sue Cundiff received $13,405 by “endorsing her deceased husband’s name” to retirement checks issued to Tommy Cundiff over a period of 36 months.
Former firefighter and Live Oak Publics Works Director Tommy Cundiff passed away on Oct. 31, 2006. He had begun drawing retirement benefits in March 1999 and chose a 50 percent joint and survivor annuity option for his wife, Sue. Tommy Cundiff was to receive $812.49 a month. Upon his death, Sue Cundiff was to receive $406.25 a month for the rest of her life.
The company administering the plan was never notified of Tommy Cundiff’s death, said city officials, and Sue Cundiff continued to receive $812.49 per month.
Now, the board of trustees for the Live Oak Firefighter’s Pension Fund wants the money returned.
“Ms. Cundiff is obligated to return (the money) and the trustees are obligated to collect the overpayment,” Sellers said in the letter. “Ms. Cundiff should have returned checks made payable to her deceased husband.”
Sellers said the city is not responsible for the debt since the city has no authority over the pension fund.
“It is my opinion that the board of trustees has the authority to withhold from Ms. Cundiff all future monthly payments until the overpayment and accrued interest ... is repaid,” said Sellers. “My initial thoughts are that the city has no responsibility for Ms. Cundiff’s problems and has no authority to spend city funds on her behalf to repay moneys she owes the retirement plan.”
Councilman John Hale stands by his previous assertion that Sue Cundiff is not responsible for the mistake and shouldn’t have to repay the money.
“It’s an opinion, it’s not law,” said Hale of Sellers’ letter. “I don’t think she should have to pay it back. I still feel like the council can still do what they want with it.”
Copyright 2009