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Overpayment Recovery (updated 8/20/12)

FAQ's

Email the Overpayment Recovery Team

Resolution of recent Oregon Supreme Court Cases (Arken/Robinson and White) enables PERS to begin recovery of overpayments made to approximately 29,000 PERS benefit recipients.

Overpayments were a result of 20 percent earnings crediting in 1999 instead of 11.33 percent that was later determined to be the proper amount.

Members or their beneficiaries who received overpayments were notified in January 2006 that an overpayment occurred. Subsequent court challenges prevented further recovery efforts until now.

Everyone who received an overpayment will be mailed a first notice explaining the recovery process, and a second notice will be mailed that details the amount of their overpayment. We anticipate beginning the recovery process in summer 2012.

Benefit recipients with an ongoing monthly benefit (updated 8/02/12)

Those who have an ongoing monthly benefit will receive a letter showing the overpayment amount and the repayment options:

1) Pay the entire amount in a lump sum,

2) Take no action and PERS will default to deducting a set percentage (most likely between 2 to 5 percent) from your ongoing benefit to recover the overpayment within a reasonable period (up to 10 years), or

3) Contact PERS to arrange a larger deduction from your ongoing benefit to return the overpayment more quickly.

Once you receive the letter from PERS noting your options, you will have 30 days to contact us to indicate which option you select. As stated above, PERS will default to deducting the set percentage of your ongoing benefit payment if you do not contact us. Once the overpayment has been fully recovered through deductions from your ongoing monthly benefit payment, the deductions will stop. Regardless of the option chosen, no interest will be charged on the overpayment.

No ongoing monthly benefit (updated 8/02/12)

Those with no ongoing monthly benefit will receive a letter showing the overpayment amount and the repayment options:

1) Pay the entire amount in a lump sum, or

2) Contact PERS to make payment arrangements.

This group will need to contact PERS within 30 days of receipt of the letter to arrange to make a lump-sum payment or to set up a payment plan. Regardless of the option chosen, no interest will be charged on the overpayment.

Oregon residents who do not respond within that time will be referred to the Department of Revenue (DOR), in conformance with the state’s debt collection policies and procedures. Non-Oregon residents who do not respond within 30 days of receipt of the letter will be referred to an outside agency in conformance with accounting policies and procedures.

View the Estimated Schedule to Mail Individual Letters (1/10/13)

Sample Individual Letter: Monthly Benefit Payment (8/20/2012)

Sample Individual Letter: Lump-Sum Payment (8/20/2012)

Read the Overpayment Recovery Frequently Asked Questions (updated 8/02/12)

View Overpayment Recovery Examples

Repayment Categories and Amounts

Read the Arken/Robinson Supreme Court decision

Read the Goodson Supreme Court decision