Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 7 - RETIREMENT OF EMPLOYEES OF SCHOOLS AND EDUCATIONAL INSTITUTIONS (§§ 24-7-101 — 24-7-1607) › Subchapter 2 - ARKANSAS TEACHER RETIREMENT SYSTEM - GENERAL PROVISIONS (§§ 24-7-201 — 24-7-211) › Section 24-7-205 - Correction of errors

(a)
(1)
If a change, omission, or error in the records of the Arkansas Teacher Retirement System results in a benefit participant, employer, or the system having received an overpayment or underpayment of any obligation, liability, contribution, or other right to payment more or less than what would have been paid or received if the records had been correct, the system or its designee shall correct the record and, as far as practicable, shall adjust the obligation, liability, contribution, or other right to payment.
(2)
A refund payable to a benefit participant shall be paid based on the corrected record.
(3)
The system may withhold an amount owed to the system from a benefit participant to correct an overpayment made to the benefit participant.
(b)
(1)
If a benefit participant has a balance due to the system or receives any benefit or other distribution by the system to which the benefit participant is not entitled or the benefit participant or employer has an unpaid obligation to the system, the system or its designee, under rules adopted by the Board of Trustees of the Arkansas Teacher Retirement System, may:
(A)
Withhold the amount due from any benefit or payment due the benefit participant;
(B)
Collect the amount in any other manner provided by law; or
(C)
(i)
Convert contributory service credit to noncontributory service credit for the fiscal year for which there is a member contribution balance due to the system, if the member that owes the member contribution balance elects to have the system convert the contributory service credit rather than pay the balance due.
(ii)
If contributory service credit is converted to noncontributory service credit under subdivision (b)(1)(C)(i) of this section, the system shall return any member contributions for the affected portion of that fiscal year without interest.
(2)
Withheld amounts shall be used to effect repayment until the total amount withheld equals all amounts payable by the benefit participant to the system.
(3)
(A)
Before making an adjustment of benefits or pursuing any other collection action under this section, the system or its designee shall provide notice to the benefit participant or employer.
(B)
The notice shall describe the process for disputing an adjustment of benefits.
(4)
The board or its designee may waive adjustment or repayment due to the system, including interest, if:
(A)
The error was not the result of the benefit participant's or employer's intentional nondisclosure, fraud, misrepresentation, or other fault; and
(B)
The board or its designee finds in his or her or its sole discretion that recovery of the amount owed to the system will result in a manifest injustice.
(c)
A determination, review, administrative action, cause of action, request to enforce, change, or modify an obligation, duty, benefit calculation, designation, refund, contribution, service credit, or other right arising under this subchapter shall not be valid unless commenced within the look-back period unless the system determines that the justification to commence the process is due to intentional nondisclosure, fraud, misrepresentation, criminal act, or an obvious or documented error by an employer or the system that understated the service credit or salary of a member.
(d)
The board or its designee may make adjustments to the employer, member, and system records beyond the look-back period if the board determines that the time limitation imposed by the look-back period will result in a manifest injustice in a specific case.
(e)
The board or its designee may waive or modify the impact of a rule, provision, or law that does not violate federal law or jeopardize the tax-qualified status of the system to correct or prevent a manifest injustice that would affect the system, benefit participant, or employer in a particular instance.
Amended by Act 2021, No. 190,§ 2, eff. 7/1/2021.
Amended by Act 2021, No. 190,§ 1, eff. 7/1/2021.
Amended by Act 2019, No. 85,§ 1, eff. 7/24/2019.
Amended by Act 2017, No. 241,§ 1, eff. 2/21/2017.
Amended by Act 2013, No. 303,§ 2, eff. 8/16/2013.
Acts 1973, No. 427, § 10; A.S.A. 1947, § 80-1444; Acts 2005, No. 1026, § 1; 2009, No. 465, § 1; 2009, No. 468, § 2; 2011, No. 138, § 2.