FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Retired Member Overpayment Recapture Arising From Implementation of Alameda Supreme Court Decision
RECOMMENDATION:
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Report on recapture of retired member overpayments arising from implementation of Alameda Supreme Court decision.
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BACKGROUND:
At the Board meeting on July 1, 2021, Trustee Newcomer requested that staff report on its activities related to the recoupment of overpayments of retirement benefits as directed by the Board in August and September of 2020.
There are two groups of overpayment recaptures. All affected retirees were defaulted into a 12-month repayment plan, but were encouraged to contact staff to make alternate arrangements if they desired.
Group 1: Standby, On-Call and Third Party Payments
531 people
Average repayment: $43/month, or 0.48% of their monthly benefit allowance
Group 2: Straddling Cashouts
29 people
Average repayment: $85/month, or 0.87% of their monthly benefit allowance
One retiree was in both group 1 and group 2. Staff pro-actively offered that member a 5-year repayment plan, which amounted to $163/month, or 1.2% of their monthly benefit allowance, and the member accepted that repayment plan.
Of the total affected population, 30 contacted staff to discuss the overpayment and/or payment arrangements. Of those, 25 wished to pay off their obligation in one lump sum, and two requested to pay off their obligation over two months instead of 12. No members requested a longer payment plan than was initially offered.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Superior Service Experience
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
None.