Sec. 802.1024.  CORRECTION OF ERRORS.  (a)  Except as provided by Subsection (b), if an error in the records of a public retirement system results in a person receiving more or less money than the person is entitled to receive under this subtitle, the retirement system shall correct the error and so far as practicable adjust any future payments so that the actuarial equivalent of the benefit to which the person is entitled is paid.  If no future payments are due, the retirement system may recover the overpayment in any manner that would be permitted for the collection of any other debt.
(a-1)  On discovery of an error described by Subsection (a), the public retirement system shall as soon as practicable, but not later than the 90th day after the date of discovery, 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 retirement system 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 this subsection and Section 802.1025, the public retirement system shall begin to adjust future payments or, if no future payments are due, institute recovery of 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.  If the system does not receive a signed receipt evidencing delivery of the notice on or before the 30th day after the date the notice is mailed, the system shall mail the notice a second time by certified mail, return receipt requested.  Except as provided by Section 802.1025, not later than the 90th day after the date the second notice is mailed, the system shall begin to adjust future payments or, if no future payments are due, institute recovery of an overpayment of benefits.
(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 system discovers or discovered the overpayment;
(2)  may not recover from the recipient any overpayment made more than three years before the discovery of the overpayment; and
(3)  may not recover an overpayment if the system did not adjust future payments or, if no future payments are due, institute recovery of the overpayment within the time prescribed by Subsection (a-2) or Section 802.1025.
(c)  Subsection (b) does not apply to an overpayment a reasonable person should know the person is not entitled to receive.
Added by Acts 2003, 78th Leg., ch. 416, Sec. 1, eff. June 20, 2003.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 1164 (H.B. 155), Sec. 1, eff. June 15, 2007.