(a)

1. (1) If a change or error in the records of the Arkansas Teacher Retirement System is discovered during the look-back period and results in either an overpayment or underpayment to the system, the Board of Trustees of the Arkansas Teacher Retirement System shall authorize the system’s staff to:

   1. (A) Correct the error in the records;
   2. (B) Adjust a benefit or any other amount payable to the corrected amount as far as practicable; and
   3. (C) Take all necessary and appropriate action, including without limitation the options allowed under Arkansas Code § 24-7-205(b).

2. (2)

   1. (A) The board or its designee may adjust the records of the system, a covered employer, and a member beyond the look-back period if the board determines that the time limitation imposed by the look-back period will result in a manifest injustice in a specific case.
   2. (B) Before making an adjustment of benefits that causes a reduction of the benefits or pursuing any other collection action, the system shall provide notice to the person who is the subject of the adjustment and the notice shall:

(i) State the amount determined to be a receivable;

1. (ii) State the reasons underlying the determination;

   1. (iii) Describe the process for disputing an adjustment of benefits; and

      1. (iv) Suggest alternate methods for payment of the receivable.

(b)

1. (1) The manifest injustice process shall not be used to address a change, omission, or error in the records of the system that may be corrected within the look-back period.

2. (2) The manifest injustice process may be used to correct a change, omission, or error in the records of the system discovered after the look-back period if the board determines that the time limitation imposed by the look-back period would cause a manifest injustice.

   1. (c) If a member is subject to a qualified domestic relations order and is paid a benefit or payment by the system to which the member is not entitled, and it is discovered during the look-back period, then a receivable is created and the board or its designee, may collect the amount due to the system.

      1. (d)
3. (1) Appeals to dispute collections shall be made according to the procedures in 24 CAR § 10-1001 et seq.
4. (2) During the appeal process, retirement benefits may continue to be paid.
5. (3) Actions that affect benefit rights shall not be corrected or adjusted further than a five-year look-back period unless a manifest injustice has occurred or an exception exists under Arkansas Code § 24-7-205(c).
6. (4) A determination by the system of a manifest injustice in a particular instance due to a technical error or error in judgment is discretionary and governed by Arkansas Code § 24-7-205.

(e)

1. (1) The Executive Director of the Arkansas Teacher Retirement System may waive interest on required contributions in an amount not to exceed five thousand dollars ($5,000).
2. (2) A request to excuse an interest amount exceeding five thousand dollars ($5,000) shall be submitted to the board for review.
3. (3) The executive director shall report any amounts excused under this section to the board.

(f)

1. (1) The executive director may approve the correction of a change, omission, or error in the records of the system and implement a resolution that has a direct financial impact to the system of up to five thousand dollars ($5,000) without obtaining board approval.
2. (2) Board approval shall be required to implement a resolution that has a direct financial impact to the system in excess of five thousand dollars ($5,000).