| Recap of Board agenda |
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Recap of Board agenda item: Strunk/City of Eugene Policy Direction and Implementation memo (September 23, 2005 Board meeting)
PERS staff presented its recommendations to the PERS Board for consideration in implementing the Strunk and City of Eugene cases at the Board’s September 23, 2005 meeting.
The Board discussed the staff’s report as well as comments received prior to and during the meeting. Staff will return to the Board at its October 21, 2005 meeting with an implementation plan to recover overpaid benefit amounts and adjust the benefit amount going forward.
PERS will:
- Pursue collection of overpaid amounts from those Tier One members who received the direct benefit of the 1999 earnings overcrediting. This will correct past benefit overpayments and prevent future overpayments by adjusting benefits going forward.
- Utilize a recovery process that minimizes the effect on current monthly benefits and provides the longest possible repayment period.
- Monthly benefit payments will be adjusted going forward to reflect the 11.33% earnings allocation for 1999 going forward, and to recover any overpayments that had occurred as of the date of adjustment. Any lump-sum payment owed to the member from the cost-of-living adjustment (COLA) freeze will be offset against the sum of overpaid benefits owed, as of a date certain. Then, for those recipients who still owe a balance to the PERS Fund, PERS will calculate, based on each member’s projected longevity and retirement option, how much the benefit needs to be reduced to repay the balance over the remaining lifetime stream of payments. Benefit payments may be reduced in the short term, but would increase at the next (and subsequent) COLA date(s).
- Instead of this option, a recipient can choose to pay the entire amount owed in a lump-sum payment. The recipient’s monthly payments will then only be adjusted going forward based on the 11.33% earnings reallocation for 1999.
- For benefit recipients who no longer have existing PERS accounts (members, beneficiaries, or alternate payees who retired, withdrew, or are receiving a death benefit), staff will calculate the lump-sum amount of their overpayment and pursue normal collection efforts and repayment plans to recover that amount.
- Waive collection of any overpayment that is less than $50 on an aggregate basis, as allowed by statute.
- Not charge interest or costs on the recovery of overpaid amounts.
Read the Strunk/City of Eugene implementation memo
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