By: Pickett, et al. (Senate Sponsor - Madla) H.B. No. 258
(In the Senate - Received from the House April 7, 2003;
April 9, 2003, read first time and referred to Committee on
Intergovernmental Relations; May 7, 2003, reported favorably by
the following vote: Yeas 4, Nays 0; May 7, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to correcting errors in the distribution of benefits by a
public retirement system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 802, Government Code, is
amended by adding Section 802.1024 to read as follows:
Sec. 802.1024. CORRECTION OF ERRORS. (a) Except as
provided by Subsection (b), if an error in the records of a public
retirement system results in a person receiving more or less money
than the person is entitled to receive under this subtitle, the
governing body of the retirement system shall correct the error and
so far as practicable adjust any future payments so that the
actuarial equivalent of the benefit to which the person is entitled
is paid. If no future payments are due, the governing body of the
retirement system may recover the overpayment in any manner that
would be permitted for the collection of any other debt.
(b) Except as provided by Subsection (c), a public
retirement system:
(1) may correct the overpayment of benefits to a
person entitled to receive payments from the system by the method
described by Subsection (a) only for an overpayment made during the
three years preceding the date the governing body of the system
discovers or discovered the overpayment; and
(2) may not recover from the recipient any overpayment
made more than three years before the discovery of the overpayment.
(c) Subsection (b) does not apply to an overpayment a
reasonable person should know the person is not entitled to
receive.
SECTION 2. Section 12(b), Chapter 451, Acts of the 72nd
Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
Civil Statutes), is amended to read as follows:
(b) If any change or error in the records of the retirement
system is discovered or results in any member, surviving spouse, or
beneficiary receiving from the retirement system more or less than
the member, surviving spouse, or beneficiary would have been
entitled to receive had the records been correct, the retirement
board shall have the power to correct such error. Except as
provided by Section 802.1024, Government Code, the retirement
system shall, [and] as far as possible, [to] adjust the payments in
such a manner that the actuarial equivalent of the benefits to which
the member, surviving spouse, or beneficiary was correctly entitled
shall be paid.
SECTION 3. Section 10.02, Chapter 452, Acts of the 72nd
Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's
Texas Civil Statutes), is amended to read as follows:
Sec. 10.02. CORRECTION OF ERRORS. If any change or error in
the records of the police retirement system should be discovered or
should result in any member, retired member, surviving spouse, or
beneficiary receiving from the police retirement system more or
less than such member, retired member, surviving spouse, or
beneficiary would have been entitled to receive had the records
been correct, the police retirement board shall have the power to
correct such error. Except as provided by Section 802.1024,
Government Code, the retirement system shall, [and] as far as
possible, [to] adjust the payments so that the actuarial equivalent
of the benefits to which the member, retired member, surviving
spouse, or beneficiary was correctly entitled shall be paid.
SECTION 4. Section 3.03(d), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
(d) Except as provided by Section 802.1024, Government
Code, the [The] board may reduce the amount of a benefit to which a
retiree or beneficiary is otherwise entitled in order to reimburse
the fund for an overpayment or incorrect payment of benefits to the
retiree or beneficiary.
SECTION 5. This Act applies to an underpayment or
overpayment of benefits by a public retirement system made by the
governing body of the system regardless of whether the underpayment
or overpayment was made before the effective date of this Act,
except that it does not apply to an overpayment that has been
resolved by agreement made before the effective date of this Act
between the governing body of a public retirement system and the
recipient of the overpayment.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
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