A bill that would make changes to the way the state retirement plan addresses overpayment or underpayment of those benefits has the support of the state treasurer.
State Treasurer Dale Folwell said both overpayments and underpayments happen in the administering of retirement plans, and can be caused by things like system errors, manual calculation errors, incorrect information submitted or other causes.
Current state law says overpayments cannot be forgiven and state officials must pursue repayment “by all lawful means available.”
House Bill 201 would allow some flexibility for RSD to adjust retiree payments if the overpayment was a result of an administrative error by RSD, and work out what Folwell called a “reasonable schedule” for repayment rather than demanding the money back immediately.
