§ 24-51-409 — Refund of erroneous member contribution

(1) It is the intent of
the general assembly that the association consider the payment of interest on any
erroneous contribution made to a member contribution account and later refunded
to the member. It is the further intent of the general assembly that, if the member
was intentionally and actively involved in an erroneous contribution with an intent
to increase a retirement benefit by including contributions to the member
contribution account that were not based on salary, then interest may be withheld
by the association as provided in this section.

(2) The association shall refund to an employer, for payment to a member,
any erroneous contribution, as defined in section 24-51-101 (21.5), that was made by
the employer to a member contribution account. The association shall refund to the
employer for payment to such member, in addition to the amount of the erroneous
contribution, interest in the amount specified in section 24-51-101 (28)(c) for the
period beginning on the date of the contribution and ending on the date of the
refund; except that, if the member was intentionally and actively involved in the
erroneous contribution made to his or her member contribution account, the refund
of interest on that amount may be withheld by the association.

Legislative History

Source: L. 95: Entire section added, p. 518, � 2, effective May 19.