Adjustments

(a)When an error is made in the records maintained by the Fund or by the government, or in the contributions made on behalf of a member, or in computing a benefit, and, as a result, a member or beneficiary is entitled to receive from the Fund more or less than the member or beneficiary would have been entitled to receive had the records or contributions been correct or had the error not been made, then

(1)the records, contributions, or error shall be corrected, and

(2)as far as practicable, future payments or benefit entitlement shall be adjusted so that the actuarial equivalent of the annuity or benefit to which the member or beneficiary was correctly entitled shall be paid. If no future payment is due, a person who was paid any amount to which the person was not entitled is liable for repayment of that amount, and a person who was not paid the full amount to which the person was entitle shall be paid the balance of that amount.

(b)An adjustment that requires the recovery of benefits may not be made under this section if: CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(1)the error was not the result of erroneous information supplied by the member of beneficiary;

(2)the member or beneficiary did not have reasonable grounds to believe that the amount of the benefit was in error; and

(3)the incorrect benefit was first paid four years or more before the member or beneficiary was notified or the error.

(c)At every regularly scheduled meeting of the Board of Trustees of the Fund, the Director shall report to the Board on all situation since the Director’s last report in which an adjustment has been prohibited under

(b)of this section. If the Board finds that there is reason to believe that one or more of the conditions set out in

(b)of that section have not been met, the Director shall notify the member or beneficiary that an adjustment will be made to recover the overpayment.

(d)Notice of the adjustment under this Subsection shall include a statement that the affected member or beneficiary may appeal the adjustment to the record by notifying the Director, in writing, within thirty

(30)days after receipt of notice that the records will be adjusted. A member or beneficiary who receives notice of adjustment under this subsection may appeal to the Board for a waiver of the adjustment in accordance with Section 8122.2(b). An adjustment shall not be required while the appeal is pending.

(e)The Fund shall pay regular interest on amounts owed to a member or beneficiary.

(f)Interest shall be charged on amounts owed to the Fund by a member or beneficiary if the amount owed is the result of erroneous information supplied by the member or beneficiary, or if the member or beneficiary had reasonable grounds to believe the amount of the benefit was in error. The interest paid under this subsection shall be equal to the rate established in § 8137(c) for which the correct payment was due and shall continue until an actuarial adjustment to the benefit is effective or the amount owed is paid.