North Dakota Administrative Code › Title 71 - Retirement Board › Article 71-02 - Public Employees Retirement System › Chapter 71-02-04 - Retirement Benefits › Section 71-02-04-10 - Erroneous payment of benefits - Overpayments

Current through Supplement No. 393, July, 2024
1. An
				"overpayment" means a payment of money by the public employees retirement
				system that results in a person receiving a higher payment than the person is
				entitled to under the provision of the retirement plan of membership.
2. A person who receives an overpayment is
				liable to refund those payments upon receiving a written explanation and
				request for the amount to be refunded. All overpayments must be collected using
				the care, skill, prudence, and diligence under the circumstances then
				prevailing that a prudent person acting in like capacity and familiar with such
				matters would use in the conduct of an enterprise of like character and with
				like gains. If the cost of recovering the amount of the overpayment is
				estimated to exceed the overpayment, the repayment is considered to be
				unrecoverable.
3. If the
				overpayment of benefits was not the result of any wrongdoing, negligence,
				misrepresentation, or omission by the recipient, the recipient may make
				repayment arrangements subject to the executive director's approval within
				sixty days of the written notice of overpayment with the minimum repayment
				amount no less than fifty dollars per month. If repayment arrangements are not
				in place within sixty days of the date of the written notice of overpayment,
				the executive director shall offset the amount of the overpayment from the
				amount of future retirement benefit payments so that the actuarial equivalent
				of the overpayment is spread over the benefit payment period.
4. If the overpayment of benefits was the
				result, in whole or in part, of the wrongdoing, negligence, misrepresentation,
				or omission of the recipient, the recipient is liable to pay simple interest
				charges at the rate of six percent on the outstanding balance to compensate the
				fund for lost earnings, from the time the erroneous benefit was paid through
				the time it has been refunded in full. Recovered funds are first applied to
				interest and, if any amount is left over, that amount is applied to principal.
				The recipient may make repayment arrangements, subject to the executive
				director's approval, within sixty days of the written request for refund with
				the minimum repayment amount no less than fifty dollars per month. If repayment
				arrangements are not in place within sixty days of the date of the written
				notice of overpayment, the executive director shall offset the amount of the
				overpayment from the amount of future retirement benefit payments so that the
				actuarial equivalent of the overpayment is spread over the benefit payment
				period.
5. If an individual dies
				prior to fully refunding an erroneous overpayment of benefits, the public
				employees retirement system must make application to the estate of the deceased
				to recover the remaining balance.
General Authority:
NDCC 54-52-04,
					 54-52-17
Law Implemented:
NDCC 39-03.1-25,
					 54-52-17