Thousands of retired teachers have pensions involuntarily withdrawn

A banking error led to thousands of teachers union retirees having money withdrawn from their pensions last night without their knowledge.

According to United Federation of Teachers president Michael Mulgrew, the Bank of New York Mellon deposited money in over 60,000 retired teachers’ accounts and then overnight and without explanation, withdrew the money. A spokesman from the Comptroller’s Office said the total came to almost $189 million.

The UFT is, to put it lightly, furious.

“All day we’ve been working with them. We’re not happy, we’re outraged, it’s unacceptable, this not the way you treat people who’ve worked for you,” Mulgrew said.

“Our priority right now is to get our members made whole right now. Then we have to make sure this will never happen again.”

A statement on the bank’s website apologizes for the error:

“BNY Mellon is returning to participant accounts the funds that were incorrectly withdrawn, and will fully reimburse participants for any costs they incur as a result of this error.”