Section 125.9 - Correction of Errors(a) Service Credit and Contribution Errors. (1) A participating municipality is responsible for the correction of an error arising from an act or omission of the municipality that results in a person contributing more or less than the correct amount to the system or receiving more or less credited service, prior service credit, current service credit, or benefits than the person is rightfully entitled to receive under the system. (2) If the error involves member contributions, the participating municipality may initiate the correction process in a manner determined by the system. (A) The municipality will need to provide identifying information for the affected member or members, the time period during which the error occurred, and the amount of the correction to member contributions submitted by the municipality. The member contributions are determined according to the employee deposit rate in effect at the time that the error occurred. (B) The municipality will also need to submit its municipal contribution based on the sum total of the member contributions made in connection with the correction and the municipal contribution rate in effect at the time that the correction is made by the municipality. (3) Corrections to service credits or benefits shall be considered as part of, and funded in the same manner as, any other pension liabilities of the participating municipality; however, corrections will not include an adjustment for any missed annual interest credits or an adjustment or recalculation for updated service credits unless otherwise authorized under the Act. (4) The processing and authorization of all service credit and contribution errors will be administered in accordance with applicable system policies and procedures as adopted and amended from time to time. (b) For purposes of § 802.1024 of the Government Code, if an overpayment is received because a person intentionally or knowingly provided inaccurate information or withheld accurate information from the system, that overpayment shall be deemed to be one that a reasonable person should have known the person is not entitled to receive. (c) The system may correct other errors caused by an act or an omission by appropriate means to ensure that the system complies with the terms set forth in the Act and maintains its qualified-plan status. (d) The system may adopt and amend policies and procedures to implement corrections of errors under the Act, Government Code §§ 802.1024 and 802.1025, and this Chapter of Part 6 of Title 34, Administrative Code. To the extent that the system has existing policies and procedures relating to correction of errors, the adoption of this section of Part 6 of Title 34, Administrative Code, will not invalidate, supplant, replace, or void such policy or procedure and they shall remain in full force and effect until further amended or revised by the system.34 Tex. Admin. Code § 125.9
Adopted by Texas Register, Volume 46, Number 16, April 16, 2021, TexReg 2588, eff. 4/25/2021