(a) A benefit overpayment by the defined
benefit plan of the Teachers' Retirement System (AS
14.25.009-14.25.220), other than one
described in
AS
14.25.173(b) or waived under
AS
14.25.175, must be recovered by applying a
lifetime actuarial reduction to the benefit recipient's future monthly
benefits, unless the benefit recipient elects to pay the overpayment in a lump
sum.
(b) A benefit underpayment by
the defined benefit plan of the Teachers' Retirement System (
AS
14.25.009-
14.25.220) must be paid to the
recipient
(1) by applying a lifetime actuarial
increase to the recipient's future monthly benefits if the underpayment exceeds
$3,500, unless the recipient elects to receive a lump sum payment; or
(2) by lump sum if the underpayment is $3,500
or less.
(c) The
division will notify the recipient by certified mail of the overpayment or
underpayment amount. The recipient must irrevocably elect a payment option
under (a) or (b)(1) of this section within 60 days after receipt of the
division's notice. Failure of the recipient to notify the division of a payment
option election and to pay the lump sum overpayment, if applicable, by either
hand delivering or mailing written notification and payment, which must be
received or postmarked within 60 days after the recipient's receipt of the
division's notice, will result in a lifetime actuarial reduction or increase to
the recipient's monthly benefit.
(d) The lifetime actuarial monthly benefit
reduction or increase is calculated by multiplying the amount of the
overpayment or underpayment, including interest if applicable, by the
appropriate actuarial factor for the recipient's age at the time of the
adjustment. The most advantageous table of factors adopted during the member's
TRS employment will be used to calculate the actuarial reduction or increase to
the recipient's future monthly benefits.
(e) The administrator will require a member
or beneficiary to submit evidence to support the claim of hardship, including a
copy of the member's or beneficiary's most recent federal tax return in
addition to the spouse's most recent federal tax return if filed separately, if
the member or beneficiary requests a waiver of overpayment under
AS
14.25.175(a)(1) because of
undue hardship.
(f) An actuarial
adjustment to benefits that have been corrected due to an error or change in
the record ceases on the first of the month following the date the member dies.
If the member dies on the first of a month, the actuarial adjustment ceases on
the date of the member's death. Survivor benefits calculated under
AS
14.25.162,
14.25.164 or
14.25.167 do not include the
actuarial adjustment.
