| (a) Service Credit and Contribution Errors.
(1) A participating municipality is responsible for
the correction of an error arising from an act or omission of the
municipality that results in a person contributing more or less than
the correct amount to the system or receiving more or less credited
service, prior service credit, current service credit, or benefits
than the person is rightfully entitled to receive under the system.
(2) If the error involves member contributions, the
participating municipality may initiate the correction process in
a manner determined by the system.
(A) The municipality will need to provide identifying
information for the affected member or members, the time period during
which the error occurred, and the amount of the correction to member
contributions submitted by the municipality. The member contributions
are determined according to the employee deposit rate in effect at
the time that the error occurred.
(B) The municipality will also need to submit its municipal
contribution based on the sum total of the member contributions made
in connection with the correction and the municipal contribution rate
in effect at the time that the correction is made by the municipality.
(3) Corrections to service credits or benefits shall
be considered as part of, and funded in the same manner as, any other
pension liabilities of the participating municipality; however, corrections
will not include an adjustment for any missed annual interest credits
or an adjustment or recalculation for updated service credits unless
otherwise authorized under the Act.
(4) The processing and authorization of all service
credit and contribution errors will be administered in accordance
with applicable system policies and procedures as adopted and amended
from time to time.
(b) For purposes of §802.1024 of the Government
Code, if an overpayment is received because a person intentionally
or knowingly provided inaccurate information or withheld accurate
information from the system, that overpayment shall be deemed to be
one that a reasonable person should have known the person is not entitled
to receive.
(c) The system may correct other errors caused by an
act or an omission by appropriate means to ensure that the system
complies with the terms set forth in the Act and maintains its qualified-plan
status.
(d) The system may adopt and amend policies and procedures
to implement corrections of errors under the Act, Government Code §§802.1024
and 802.1025, and this Chapter of Part 6 of Title 34, Administrative
Code. To the extent that the system has existing policies and procedures
relating to correction of errors, the adoption of this section of
Part 6 of Title 34, Administrative Code, will not invalidate, supplant,
replace, or void such policy or procedure and they shall remain in
full force and effect until further amended or revised by the system.
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