Iowa Administrative Code › Agency 661 - Public Safety Department › Chapter 402 - Peace Officers- Retirement, Accident, and Disability System- Eligibility, Benefits, and Payments › Rule 661-402.202 - Errors in Payments

Current through Register Vol. 47, No. 3, July 24, 2024
If an error in payments already made to a member or beneficiary
				is discovered, arrangements shall be made to correct the error, either through
				recovery of overpayments from the member or beneficiary or through additional
				compensation paid to the member or beneficiary to adjust for underpayments.
				Schedules referenced in this rule shall commence only after presentation to and
				approval by the board of trustees.
(1)
			 As soon as practical after being discovered, underpayments shall be corrected
			 through a lump-sum payment to the member or beneficiary in an amount equal to
			 the total amount of underpayments to date and an amount of interest such that
			 the total lump-sum payment is actuarially equivalent to the total amount of
			 underpayments. The member or beneficiary may request a method of repayment
			 other than a lump-sum payment, in which case a repayment schedule may be
			 mutually agreed upon between the board and the member or beneficiary.
(2) Overpayments other than those which
			 resulted from fraudulent acts on the part of the member or beneficiary
			 receiving the payments shall be recovered from the member or beneficiary. The
			 preferred method of recovery, if the member or beneficiary is continuing to
			 receive payments from the system, shall be withholding monthly an amount
			 equivalent to the monthly average of the amount of overpayments during the
			 period in which the overpayments were made, until total repayments equal a sum
			 actuarially equivalent to the total amount of overpayment. If the member or
			 beneficiary is not receiving payments from the system, the board may seek
			 repayment in a lump sum including the amount of overpayments and interest in an
			 amount such that the total repayment is actuarially equivalent to the total
			 amount of overpayments, although the member or beneficiary may request a
			 repayment schedule be established and the board may agree to do so.
(3) An overpayment which resulted in whole or
			 in part from a fraudulent act or acts on the part of the member or beneficiary
			 receiving the payments shall be repaid to the system in an amount which is
			 actuarially equivalent to the amount of the overpayment plus a reasonable
			 assessment of the administrative costs to the system and the department to
			 recover the overpayment. The preferred method of repayment is a lump-sum
			 payment collected as soon as practical after the overpayment and the fraudulent
			 act are discovered, although the board shall accept a repayment schedule
			 established by a court which orders restitution in relation to a conviction
			 stemming from the fraudulent act or acts. The board may agree to an alternative
			 payment schedule at the request of the member or beneficiary if there is no
			 applicable order of restitution.
The board may find, on the basis of clear and convincing
				evidence, that an overpayment resulted from a fraudulent act or acts on the
				part of a member or beneficiary. A conviction based upon a fraudulent act or
				acts committed in relation to the receipt of benefits from the system shall be
				prima facie evidence of fraud for purposes of this subrule.