North Dakota Administrative Code › Title 71 - Retirement Board › Article 71-05 - Highway Patrol Retirement System › Chapter 71-05-05 - Normal and Early Retirement Benefits › Section 71-05-05-10 - 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 an explanation and a written request for the amount to be refunded
				from the executive director. 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 an 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
				individual's benefit payment period.
4. If the overpayment was the result, in
				whole or in part, of the wrongdoing, negligence, misrepresentation, or omission
				of the recipient, the recipient is liable to pay 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
					 32-03-04,
					 39-03.1-06,
					 54-52-04(12),
					 54-52-14.2
Law
					 Implemented: NDCC
					 39-03.1-25