That money belongs to her. As for her pension? If she IS still getting a pension it's a disgrace! Don't be surprised if that is the case however...if you're a public sector employee it's hard to lose your benefits. I remember when a bunch of Building Inspectors in Boston were exposed by one of the local papers for literally clocking in and then going to a social club in the North End and playing cards all day before going back to clock out. You know what their "punishment" was? Suspension with pay. Hard to believe, I know but that's the unfortunate reality we live under.