Okla. Admin. Code § 715:10-11-4

Current through Vol. 42, No. 7, December 16, 2024

Section 715:10-11-4 - Correcting mistakenly paid contributions

(a) TRS shall correct employer contributions and employee contributions if the payment of contributions was made in error.

(b) The amount to be returned to the employer and the employee is excess employer contributions or excess employee contributions. These contributions are defined as the excess of the amount contributed or paid over the amount that would have been contributed or paid had no mistake of law or fact been made.

(c) Excess employer contributions shall be returned as follows:

(1) When the return of employer contributions occurs within 12 months of the payment of excess contributions, TRS may provide a refund or credit to the employer provided, a refund shall only be given to the requesting employer when such refund occurs within 12 months of the overpaid contribution. No interest shall be paid by TRS on refunds or credits for this purpose.

(2) When the return of employer contributions occurs after 12 months of the payment of excess contributions, TRS shall only provide a credit to the employer against future employer contributions due with appropriate interest under OAC 715:10-11-1 consistent with the interest factor applied to the corresponding excess employee contributions.

(d) Excess employee contributions shall be returned as follows:

(1) When the return of employee contributions occurs in the current calendar year, TRS shall credit the employer for the excess employee contributions against future employee contributions due. No interest shall be paid by TRS on the credited amount. The employer shall then provide a corresponding refund to the employee through its payroll ensuring the employee's W-2 pay is correct for the calendar year.

(2) When there are multiple calendar years' worth of employee contributions being corrected or when the excess contributions are attributable to other than the current calendar year, TRS will distribute the excess employee contributions to the member or individual in a refund as soon as practical through a lump sum payment for all past overpayments with appropriate interest under OAC 715:10-11-1. The distribution shall be reported on IRS Form 1099-R for the year of the distribution.

Okla. Admin. Code § 715:10-11-4

Amended by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022

Amended by Oklahoma Register, Volume 40, Issue 22, August 1, 2023, eff. 9/11/2023

Amended by Oklahoma Register, Volume 41, Issue 23, August 15, 2024, eff. 9/1/2024