Now Retired, Company wants some of the lump sum pension back.

What is the name of your state?What is the name of your state? Pennsylvania

I retired about 2 years ago after 37 yrs with the same fortune 500 company. At that time I received a lump sum amount of money representing what I was entitled to from the company paid pension plan.

About 6 months ago they sent me a letter stating that a mistake in the calculation of the pension was made and that they over paid me by $25K.

I'm suspicious about that since before I retired, every time I asked for an estimate of what I was to get the amount was different. How do I know if they really made a mistake or not?

They have sent me several more letters demanding repayment which I have ignored. They have threatened to send the matter to their legal department and to contact my IRA custodian that the $25K is not eligible for roll over. In the last 3 months I haven't heard anything further and they have not contacted my IRA custodian. The IRA custodian told me that the company could not touch my money.

Do you think I have to, or I should give the money back?
Should I wait to hear from their legal dept before contacting a lawyer or let them take the next step (if they ever do)?

I think that you should talk to an attorney about your options. However, IF they actually did overpay you, you do have to return it.

Should I wait to hear from their legal dept before contacting a lawyer or let them take the next step (if they ever do)? The next step will probably be for the employer's legal counsel to file suit. I don't think you should wait around for that to happen.

Speak to an attorney who is experienced with employer-sponsored retirement plans. By the way, this doesn't sound like a "pension" plan as those proceeds are not paid out in a lump sum distribution. I expect you're referring to funds from a 401(k) retirement plan or similar.

Company Paid Pension Plan as Lump Sum instead of Annuity

Thanks for the advice. I will contact a lawyer. It is a company paid pension plan. I had a choice to take it as an annuity or a lump sum. I also have a 401k plan.