(1) If an overpayment for a law enforcement officers' and firefighters' retirement system plan 2 retiree was due to an employer erroneously reporting law enforcement officers' and firefighters' retirement system plan 2 member information to the department, and the erroneous reporting was not the result of the member's nondisclosure, fraud, misrepresentation, or other fault, the employer is liable for the resulting overpayment.
(2) Upon receipt of a billing from the department, the employer shall pay into the Washington law enforcement officers' and firefighters' system plan 2 retirement fund the amount of the overpayment plus interest as determined by the director. The employer's liability under this section shall not exceed the amount of overpayments plus interest received by the retiree within one year of the date of discovery, except in the case of fraud committed by the employer. In the case of fraud committed by the employer, the employer is liable for the entire overpayment plus interest.