§ 11:1589 — Overpayment of benefits; corrections; repayment

§1589. Overpayment of benefits; corrections; repayment
A. The director may correct any administrative error and make all adjustments
relative to such correction as provided in Subsection C of this Section. The director shall
correct such error based solely on sufficient documentation, which shall be submitted to the
board of trustees for approval at the next board meeting after receipt of such documentation,
whether such administrative error was committed by the system or otherwise.
B. If an underpayment of benefits is due to an administrative error committed by
system staff, the correction of the error pursuant to Subsection A of this Section may include
the payment of interest at a rate not to exceed the system's valuation interest rate or the
judicial interest rate, whichever is lower.
C. If an amount is paid to a retiree, beneficiary, or survivor which is not due him, the
board of trustees shall adjust the amount payable to the correct amount, and the board may
recover any overpayment by reducing the corrected benefit such that the overpayment will
be repaid within twelve months. The director or board of trustees shall notify the retiree,
beneficiary, or survivor of the amount of overpayment in benefits and the amount of the
adjustment in benefits at least thirty days prior to any reduction from the benefit amount
without the overpayment.
D. The right to collect any benefit paid to a retiree, beneficiary, or survivor which
is not due him, due to administrative error by the system, applies only to amounts paid during
the thirty-six month period immediately preceding the date on which notice of such error is
sent to the member, except in the case of fraud. This right to collect is subject to a liberative
prescription of ten years. This prescription commences to run from the date the system has
actual knowledge of the error in payment.
E. Notwithstanding the provisions of Subsection D of this Section, if the individual
received a payment because of a fraud against the system, the right to collect such fraudulent
payment shall extend to the entire amount of overpayment obtained through fraud. This right
to collect is subject to a liberative prescription of ten years. This prescription commences
to run from the date the system has actual knowledge of the error in payment.

Legislative History

Acts 2021, No. 139, §1, eff. July 1, 2021.