MISHAWAKA, Ind. – A northern Indiana city that paid a former city employee $10,000 too much from its pension fund has reached a settlement in the case.

Former Mishawaka city worker Pat Oliva has agreed to pay back $7,500 of the money to the city.

But the South Bend Tribune reports (http://bit.ly/YzpRKG) that Mishawaka spent more than $12,500 in legal fees trying to get the money back.

Oliva had worked for Mishawaka Utilities for seven years until he lost his job in 2009 in a staff reduction. The city released about $12,500 from its pension fund for him in October 2011, leaving him with about $10,000 after taxes.

Seven months later city auditors discovered that Oliva should have gotten only about $2,500 and asked for the rest of the money back.