By law, PERS is required to recover any erroneous payment, including overpayment of benefits. Should you receive an erroneous payment or overpayment, PERS will first determine the amount you owe. If you are entitled to a lump-sum payment, PERS will reduce the payment by an amount necessary to recover any overpayment or erroneous payment. If the reduction of your lump-sum payment is insufficient to recover the full amount of the overpayment or erroneous payment, recovery of the remaining amount will be in the form of either a lump-sum recovery or monthly recovery. The method of recovery is determined, as shown in the following table, based on whether or not an agreement exists between PERS and the payee. PERS, at its discretion, may revise the repayment schedule or continue on the established payment schedule until the amount owed is fully recovered.
Recovery types and the method of collection
| Agreement | Type of recovery | Method of collection | |
|---|---|---|---|
| Voluntary | Lump-sum | You agree to repay PERS for any remaining unpaid balance by making a lump-sum payment. | |
| Monthly | You agree to reimburse PERS through monthly collections, which may occur one of three ways: | ||
| 1. | A deduction of an agreed upon percentage or fixed dollar amount from future monthly payments for a period not to exceed two years that will fully repay the amount owed. | ||
| 2. | A fixed monthly dollar amount to be agreed upon between the payee and PERS that will fully repay the amount owed | ||
| 3. | A deduction of an agreed upon percentage or fixed dollar amount from future monthly payments for a specified period greater than two years that will fully repay the amount owed. PERS must deem that the payee's personal financial circumstances warrant a longer repayment period. | ||
| Involuntary | Monthly | If you do not agree to reimburse PERS for any overpayment or erroneous payment, PERS will initiate monthly collections one of four ways: | |
| 1. | A deduction of a specific amount of not more than 10 percent from current and future monthly payments from PERS until the amount owed is recovered. | ||
| 2. | An actuarially determined reduction (not to exceed 10 percent) to current and future payments from PERS. | ||
| 3. | A recovery using any means available to the PERS Board under applicable law. | ||
| 4. |
Employing outside collection agencies. |
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The Board may waive the recovery of any overpayment or erroneous payment if the total amount owed is less than $50.
The recovery must be initiated within six years after the date payment was made. Initiation of the recovery starts on the date PERS mails the overpayment/erroneous payment notification. The Board may use any other collection method available under applicable law.