Sec. 22.01.11.05. Offset if Earnings Exceed Limit

A. On or before January 31, 1996, and on or before January 31 of each year after that, a participating employer shall submit to the Retirement Agency the following information for the preceding calendar year:

(1) The participating employer's tax identification numbers;

(2) The name and Social Security number of all employees on payroll during the preceding calendar year; and

(3) The actual earnings paid to each employee during the preceding calendar year.

B. The participating employer shall submit the information to the Retirement Agency in a format acceptable to the Retirement Agency.

C. On or before May 31, 1996, and on or before May 31 of each year after that, the Retirement Agency shall review the records received from each participating employer, its retirement records, and any other relevant records to determine whether a retiree has received earnings from a participating employer that exceed the retiree's earnings limit. If the records reflect that a retiree has received earnings that exceed the limit, the Retirement Agency shall send a notice to the retiree that conforms to the requirements of §D of this regulation.

D. The notice shall:

(1) Be in writing;

(2) Reflect the earnings:

(a) Reported by the participating employer for a retiree; and

(b) Limitation applicable to the retiree;

(3) Advise the retiree of the amount of the reduction in the retiree's service retirement allowance to recover the portion of the retiree's service retirement allowance paid during the preceding calendar year that exceeded the earnings limit;

(4) State that the reduction in the retiree's allowance will begin on July 1 and shall continue until the overpayment is recovered to the extent permitted by law; and

(5) Notify the retiree of the procedures for obtaining relief from the offset provisions.

E. On July 1, 1996, and on July 1 of each fiscal year after that, the Retirement Agency shall reduce the service retirement allowance for each retiree who has received earnings during the preceding calendar year that exceed the applicable earnings limitation in order to recover the amount of the overpayment. The Retirement Agency may not recover more than the retirement allowance paid to the retiree.