Correction of Errors

PURPOSE: The purpose of this rule is to make express the implied authority of the board of trustees to assure that payments in the correct amount are made to former members and their beneficiaries. (1) Should any change in records or error result in any person EMPLOYEES’ RETIREMENT SYSTEM (LAGERS) receiving from the system more or less than s/he would have been entitled to receive had the records been correct or the error not been made, the executive secretary shall make corrections to the records and as far as is practicable shall adjust the amount of the benefit in such a manner that the correct amount of the benefit to which the person is entitled shall be paid. (2) In the event that an error, oversight, or miscalculation of benefits results in an active or former member, retirant, or beneficiary being paid less than the amount which s/he was entitled to receive, the amount of retroactive benefits payable, if any, shall be calculated, and the system shall pay such amount in a lump-sum payment, in addition to adjusting the amount of the current benefit, as otherwise provided in this section. (3) In the event that an error, oversight, or miscalculation of benefits results in an active or former member, retirant, or beneficiary being paid more than the amount which s/he was entitled to receive, the executive secretary shall notify the individual of the amount of the overpayment, which shall be recovered by the system in accordance with the following policy: (A) If the active or former member, retirant, or beneficiary is receiving a monthly benefit or other type of recurring payment from the system, the Missouri Local Government Employees’ Retirement System (LAGERS) will recover the overpayment by making an adjustment to the recurring payment using an actuarially determined reduction over the individual’s estimated lifespan to recover the full amount of the overpayment to the particular active or former member, retirant, or beneficiary who received the overpayment. Such overpayment recovery shall not exceed the actual dollar amount of the overpayment. The particular active or former member or retirant or beneficiary who received the overpayment may also opt to repay the overpayment to the system in one lump sum payment. (B) In the event that an active or former member, retirant, or beneficiary received an overpayment of a lump sum or other type of nonrecurring payment from the system, LAGERS will take reasonable steps to have the overpayment amount returned to the system by the active or former member, retirant, or beneficiary who received the overpayment. (4) Any correction of errors to member records concerning, but not limited to, name, remuneration, contributions, marriage, dates of employment, termination or birth, Social Security number, tax status, address or service credit adjustments must be certified to the system in writing. AUTHORITY: section 70.605.21, RSMo Supp. 2013.* Original rule filed June 25, 1976, effective Oct. 11, 1976. Amended: Filed Oct. 6, 1983, effective Jan. 11, 1984. Amended: Filed Feb. 16, 1999, effective July 30, 1999. Amended: Filed Aug. 30, 2000, effective Feb. 28, 2001. Emergency amendment filed Dec. 23, 2013, effective Jan. 2, 2014, expired June 30, 2014. Amended: Filed Dec. 23, 2013, effective June 30, 2014. *Original authority: 70.605, RSMo 1967, amended 1974, 1992, 2000, 2003, 2013.