(a) It is the intent of the general assembly to recover amounts that have been overpaid in error to members, beneficiaries, or persons who are not entitled to receive the payment or payments.
(b) These overpayments may be recovered through any one (1) or more methods, including, but are not limited to, the following:(1) A bank reclamation of the overpaid amount;(2) A benefit reduction from a member's or beneficiary's benefit, which amount must be determined based on facts and circumstances. The benefit reduction may occur by:(A) Reducing the monthly benefit payment to the member or beneficiary for as many months as necessary to recover the overpayment; or(B) Reducing the monthly benefit payment to the member or beneficiary by an amount actuarially determined to be adequate to recover the overpayment during the period the monthly benefit payment will be made to the member or beneficiary;(3) A payroll deduction in the event the member returns to service with an employer participating in the retirement system. The employer shall comply with the retirement system's request for a payroll deduction;(4) A promissory note or other documentation obligating the repayment of the overpaid amount;(5) A collection agency;(6) Filing a claim against the estate of the person overpaid;(7) Legal action; or(8) Any other methods approved by the state treasurer.
(1) A bank reclamation of the overpaid amount;
(2) A benefit reduction from a member's or beneficiary's benefit, which amount must be determined based on facts and circumstances. The benefit reduction may occur by:(A) Reducing the monthly benefit payment to the member or beneficiary for as many months as necessary to recover the overpayment; or(B) Reducing the monthly benefit payment to the member or beneficiary by an amount actuarially determined to be adequate to recover the overpayment during the period the monthly benefit payment will be made to the member or beneficiary;
(A) Reducing the monthly benefit payment to the member or beneficiary for as many months as necessary to recover the overpayment; or
(B) Reducing the monthly benefit payment to the member or beneficiary by an amount actuarially determined to be adequate to recover the overpayment during the period the monthly benefit payment will be made to the member or beneficiary;
(3) A payroll deduction in the event the member returns to service with an employer participating in the retirement system. The employer shall comply with the retirement system's request for a payroll deduction;
(4) A promissory note or other documentation obligating the repayment of the overpaid amount;
(5) A collection agency;
(6) Filing a claim against the estate of the person overpaid;
(7) Legal action; or
(8) Any other methods approved by the state treasurer.
(c) Consistent with the board's duty as a fiduciary to the fund and guidance issued by the United States treasury, and notwithstanding this section or another law or rule to the contrary, including the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, the retirement system may establish and implement policies and procedures to waive recovery of the overpayment, with the exception of an overpayment caused by a failure to observe any limitation imposed by 26 U.S.C. §§ 401(a)(17) and 415.