SENATE BILL REPORT

                                    SB 6242

                            AS OF JANUARY 29, 1992

Brief Description:  Prohibiting the department of retirement systems from recovering certain pension overpayments.

SPONSORS: Senators Nelson, Rasmussen, Johnson and von Reichbauer

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Denise Graham (786‑7715)

Hearing Dates:

BACKGROUND:

Current law requires the Department of Retirement Systems (DRS) to correct overpayments of retirement benefits by either reducing future payments or accepting a lump sum payment from the member.

DRS recently discovered an error in the calculation of Teachers' Retirement System and Public Employees' Retirement System Plan I cost-of-living adjustments.  The error has resulted in overpayments to 7,700 retirees totaling $175,000 during the period from July 1, 1990 to January 1992.

SUMMARY:

DRS is directed not to recover any overpayments of retirement benefits made between July 1, 1990, and February 1, 1992.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested January 29, 1992