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File #: 19-880    Version: 1 Name: Overpayment Update_20191111
Type: Informational Report Status: Placed on File
File created: 11/12/2019 In control: Finance and Audit Committee
On agenda: Final action: 12/19/2019
Title: From the Interim Director, Retirement Plan Services, Department of Human Resources, providing an informational report regarding the status of the pension overpayments for Quarter 2 of 2019. (Considered by the Committees on Personnel, and Finance and Audit) (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
Attachments: 1. 19-880 Overpayment Update_20191111.pdf, 2. 19-880 COUNTY BOARD RESOLUTION, 3. 19-880 REFERRAL RESPONSE (12/17/19), 4. 19-880 OVERPAYMENT PACKET SAMPLE (12/17/19)
Related files: 19-516, 18-802
Title
From the Interim Director, Retirement Plan Services, Department of Human Resources, providing an informational report regarding the status of the pension overpayments for Quarter 2 of 2019. (Considered by the Committees on Personnel, and Finance and Audit) (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)

Body
At its March 2019 meeting, the Milwaukee County Board of Supervisors voted to approve a resolution that provided procedures to resolve payment errors. This resolution included the creation of Chapter 201.24 (8.24). Retirement Plan Services has implemented these changes and is providing an informational report on the status of the overpayments for Quarter 2 of 2019. For reference, this resolution is associated with File number 18-802.
In accordance with Chapter 201.24 (8.24) of the Milwaukee County General Ordinance, Retirement Plan Services provided "Notices of Overpayment" to 68 payees as of July 31, 2019. These payees have two repayment options and three repayment methods as described below.
Two Repayment Options
Each payee with an overpayment may elect one of two repayment options. These payment options are distinguished by the responsibility of payment of interest that has been applied to the overpayment.
Repayment Option 1: Pursuant to Milwaukee County Ordinance Chapter 201.24 (8.24), the payee agrees "...to waive any and all claims and rights to challenge the benefit correction and recoupment..." and is responsible for repaying the Principal Amount Owed. Milwaukee County is responsible for the interest applied to the overpayment.
Repayment Option 2: The payee is responsible for repaying the Total Amount Owed which includes both the principal overpayment and the interest applied to the overpayment.
Two Repayment Methods
Repayment Method 1 Voluntary Lump Sum (VLS): Payee may elect Option 1 or 2 and repay their amount owed as a lump sum.
Repayment Method 2 Voluntary Repayment/Offset Plan: Payee may elect Option 1 or 2 and r...

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