80R1150 KFF-D

By: Pickett H.B. No. 155

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. Section 802.1024, Government Code, is amended by adding Subsections (a-1) and (a-2) and amending Subsection (b) to read as follows:

(a-1) On discovery of an error described by Subsection (a), the governing body of the public retirement system shall immediately give written notice of the error to the person receiving an incorrect amount of money. The notice must include:

(1) the amount of the correction in overpayment or underpayment;

(2) how the amount of the correction was calculated;

(3) a brief explanation of the reason for the correction;

(4) a statement that the notice recipient may file a written complaint with the governing body if the recipient does not agree with the correction;

(5) instructions for filing a written complaint; and

(6) a payment plan option if no future payments are due.

(a-2) Except as provided by Section 802.1025, the governing body of the public retirement system shall adjust future payments or, if no future payments are due, recover an overpayment of benefits under Subsection (a) not later than the 90th day after the date the notice required by Subsection (a-1) is delivered by certified mail, return receipt requested.

(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; and

(3) may not correct or recover an overpayment if the governing body of the system did not adjust future payments or, if no future payments are due, recover the overpayment within the time prescribed by Subsection (a-2).

SECTION 2. Subchapter B, Chapter 802, Government Code, is amended by adding Section 802.1025 to read as follows:

Sec. 802.1025. COMPLAINT PROCEDURE. (a) Not later than the 20th day after the date of receiving notice under Section 802.1024(a-1), the notice recipient may file a written complaint with the governing body of the retirement system. The recipient shall include any available supporting documentation with the complaint.

(b) Not later than the 10th day after the date of receiving a complaint under Subsection (a), the governing body of the retirement system shall respond in writing to the complaint by confirming the amount of the proposed correction or, if the governing body determines the amount of the proposed correction is incorrect, by modifying the amount of the correction. If the governing body modifies the amount of the correction, the response must include:

(1) how the modified correction was calculated;

(2) a brief explanation of the reason for the modification; and

(3) a payment plan option if no future payments are due.

(c) The governing body of the retirement system may not adjust future payments or recover an overpayment under Section 802.1024 until the complaint under this section is resolved.

(d) A person whose complaint is not resolved under this section must exhaust any complaint procedure provided by the retirement system before filing a civil claim concerning the subject of the complaint.

SECTION 3. (a) Except as provided by Subsection (b) of this section, the change in law made by this Act applies to an underpayment or overpayment of benefits by a public retirement system regardless of whether the underpayment or overpayment was made before, on, or after the effective date of this Act.

(b) The change in law made by this Act does not apply to an overpayment that was resolved by an 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 4. 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, 2007.