A method for the correction of systematic errors generated by large orientational and retardance errors in the polarization optics in the dual rotating retarder polarimeter is presented. Small orientational and retardance errors (<1°) can lead to large errors in the measured Mueller matrix (> 10% in some matrix elements). We incorporate correction terms for large orientation and retardance errors into the dual rotating retarder data reduction algorithm. Using these data reduction algorithms and a calibration step, the associated systematic errors are calculated and removed from the measured Mueller matrix. This procedure is especially useful for spectral and multi-wavelength systems in which the retardance and often the orientation of the retarders are wavelength dependent. The equations, the procedure to calculate the orientations of the polarization elements and the retardances of the retardation elements, and the method to correct for any errors are presented here. The effect of these errors on the calculated Mueller matrix elements and their correction is shown analytically and through experimental data taken on an infrared spectropolarimeter.