(a) General rule: If any change or employer error in the records of any employer or the retirement system results in any member, retirant or beneficiary receiving from the plan more or less than he or she would have been entitled to receive had the records been correct, the retirement board shall correct the error. If correction of the error occurs after the effective retirement date of a retirant, and as far as is practicable, the retirement board shall adjust the payment of the benefit in a manner that the actuarial equivalent of the benefit to which the retirant was correctly entitled shall be paid.
(b) Underpayments: Any error resulting in an underpayment to the retirement system of required contributions may be corrected by the member or retirant remitting the required member contribution and the employer remitting the required employer contribution. Interest shall accumulate in accordance with the Legislative Rule 162 CSR 7 concerning retirement board refund, reinstatement, retroactive service, loan and employer error interest factors and any accumulating interest owed on the member and employer contributions resulting from an employer error shall be the responsibility of the employer. The employer may remit total payment and the member reimburse the employer through payroll deduction over a period equivalent to the time period during which the employer error occurred. If the correction of an error involving an underpayment of required contributions to the retirement system will result in increased payments to a retirant, including increases to payments already made, any adjustments shall be made only after the retirement board receives full payment of all required member and employer contributions, including interest.
(c) Overpayments: (1) When mistaken or excess employer contributions, including any overpayments, have been made to the retirement system by an employer, due to error or other reason, the retirement board shall credit the employer with an amount equal to the erroneous contributions, to be offset against the employer's future liability for employer contributions to the retirement system. Earnings or interest shall not be credited to the employer.
(2) When mistaken or excess member contributions, including
any overpayments, have been made to the retirement system, due to
error or other reason, the retirement board shall have sole
authority for determining the means of return, offset or credit to
or for the benefit of the member of the amounts, and may use any
means authorized or permitted under the provisions of Section
401(a), et seq. of the Internal Revenue Code and guidance issued
thereunder applicable to governmental plans. Alternatively, in its
full and complete discretion, the retirement board may require the
employer to pay the member the amounts as wages, with the
retirement board crediting the employer with a corresponding amount
to offset against its future contributions to the retirement
system: Provided, That the wages paid to the member shall not be
considered compensation for any purposes under this article. Earnings or interest shall not be returned, offset, or credited
under any of the means used by the retirement board for returning
mistaken or excess member contributions, including any
overpayments, to a member.
Note: WV Code updated with legislation passed through the 2015 Regular Session
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