Current through Reg. 49, No. 38; September 20, 2024
(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.
