PERAC Memo #6 - 1999: Recouping Underpayments to Boards or Overpayments by Boards

Recouping Underpayments to Boards or Overpayments by Boards

Summary

PERAC Memo #6/1999 clarifies that pending legislation which would allow boards to waive recoupment of unintentional member underpayments or board overpayments has not yet been enacted, and therefore no waiver authority currently exists. Until such legislation passes, boards must continue to pursue full repayment of all outstanding amounts, working with affected members to arrange prompt repayment.

Full Text

PERAC MEMO #6/1999 M E M O R A N D U M TO: All Retirement Boards FROM: Robert F. Stalnaker, Executive Director RE: Recouping Underpayments to Boards or Overpayments by Boards DATE: January 26, 1999 The Commission has received inquiries on the status of the legislation that would allow retirement boards to waive the recoupment of unintentional underpayments by members or repayments of overpayments by retirement boards in certain circumstances. As of this date, this legislation has not passed the Legislature. Until such time as a bill is approved and takes effect, neither the Commission nor any retirement board has the authority to waive any repayment by any member. While the Commission agrees with this legislation in concept, the Commission cannot allow underpayments or overpayments to remain outstanding. Retirement boards should work with such members to allow prompt repayments of all amounts currently due. We trust the foregoing is of assistance. If you have further questions or concerns, please contact this office.