KRS 161.680: Mistake in payment -- Correction of error -- Collection of overpayments.

(1) If any change or error in a record results in any individual receiving from the

retirement system more or less than the individual was entitled to receive as

determined by the board of trustees or staff of the Teachers' Retirement System, the

board of trustees or staff shall, when the error is discovered, correct the error, and as

far as practicable adjust the payments so that the actuarial equivalent of the benefit

to which the individual was entitled shall be paid.

(2) The Teachers' Retirement System shall take all practicable and cost -effective steps

to collect overpayments from a member's or retiree's account. Methods of

correction of overpayments from any member's or retiree's account shall include but

are not limited to reclamation of the overpayment from the member's or retiree's

account at the depository bank, the deduction of moneys from account refunds,

deduction from the retirement allowance or joint and su rvivor annuity payable from

the account, and deduction of moneys from the life insurance benefit. Collection of

overpayments shall be initiated regardless of the designated beneficiary for any

amounts payable from the account.