1. (a) If any error in the records results in any member, beneficiary, or alternate payee under Gov't Code Section 804.005 receiving more or less than the recipient would have been entitled to receive had the records been correct, the Teacher Retirement System of Texas (TRS) shall correct such error and so far as practicable shall adjust any future payment in such a manner that the actuarial equivalent of the benefit to which the recipient was correctly entitled will be paid.
2. (b) If no future payments are due, TRS may recover an overpayment in any manner that would be permitted for the collection of any other debt.
3. (c) TRS may correct an overpayment of benefits to a person entitled to receive payments from TRS by the method described in subsection (a) of this section only for an overpayment made during the three years preceding the date TRS discovers or discovered the overpayment.
4. (d) TRS may not recover from a person entitled to receive payments from TRS any overpayment made more than three years before the discovery of the overpayment. This subsection does not apply to recovery of any payments made after the death of a retiree or beneficiary if such payments were not due because of the death of the recipient but were paid because TRS did not receive notice of the recipient's death.
5. (e) The limitations in subsections (c) and (d) of this section do not apply to an overpayment that a reasonable person should know the person is not entitled to receive.

Source Note:The provisions of this §35.1 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110; amended to be effective April 28, 2004, 29 TexReg 3969.