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Zilberberg v. Bd. of Tr.

New Jersey Appellate Division

July 2, 2021

A teacher took out a loan against her pension. The pension fund was directed to withdraw payments from her paycheck to satisfy the loan automatically. The teacher resigned months later, and the regulations required the pension fund to automatically withdraw payments from her pension payouts to satisfy the loan. But through a glitch, the pension fund failed to do so. Over 15 years, nothing happened. A routine audit uncovered the outstanding loan, and the pension fund reinstated payments to cover the loan, including 15 years of interest. The teacher claimed she should not be required to pay that interest, but the New Jersey Appellate Division disagreed, ordering her to make full payment, including interest for the dormant period.

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