County accidentally paid out millions in benefits to dependents of retirees

CHARLOTTE — Mecklenburg County has paid out millions of dollars in benefits to people who should’ve never received them.

County officials told Channel 9 investigative reporter Madison Carter they’ve been accidentally providing benefits to the dependents of retirees.

Carter asked county officials, “How did that amount of money fly under the radar for so long and what are family members of retirees supposed to do now?”

Stan McGee started his career with the Mecklenburg County Sheriff’s Office in 1988 when he was 23.

He retired exactly 30 years later in 2018.

“Every county retiree has contributed to the success of Mecklenburg County,” McGee said.

Former county workers say they’ve enjoyed a comfortable retirement for decades because of that.

However, a letter came in the mail last Saturday that stunned many.

“My jaw dropped,” McGee said.

The county told at least 396 families it made a mistake.

Dependents would no longer be covered by benefits after June 1.

For a retiree to cover their spouse, it now costs them $991 a month.

“I mean, that’s a huge increase,” McGee said.

McGee said it’s going to cost tens of thousands to cover his wife each year.

It would cost him nearly $25,000 a year to continue covering the whole family.

The county sent Channel 9 a statement saying in part, “Human Resources recently discovered that some retirees were getting subsidized dependent coverage despite the fact that the policy does not allow it. Once discovered, we took steps to rectify the issue ...”

McGee said he’s talked to colleagues, and this has been going on for four decades -- at least since 1981.

After enjoying just five years of retirement, McGee said this means those days are over.

“We’ll have to continue working, you know, to get this covered,” McGee said.

Channel 9 sent questions to county officials about how they became aware of the payment error and how much taxpayer money has been spent over the past few decades on the policy loophole.

When we asked, a county spokesperson said they wouldn’t be answering any more of our questions.

However, that is public information. Channel 9 plans to file a records request to get those answers.

Officials with Mecklenburg County said:

“Mecklenburg County recently communicated to 396 County retirees that medical premiums for their dependents are not covered by the County’s health plan.

“County policy is clear that those retirees that were eligible for retiree medical insurance from the County would only get subsidized coverage for themselves, not their dependents.

“This policy has been in place for decades. Human Resources recently discovered that some retirees were getting subsidized dependent coverage despite the fact that the policy does not allow it. Once discovered, we took steps to rectify the issue by informing these retirees that their dependent coverage would no longer be paid for by the County. The County sent letters of this change late last week. Retirees will need to pay for benefits for their dependents starting on June 1, 2023.”

©2023 Cox Media Group