Montana Code 19-20-1206. Interest on overpayments and unpaid contributions
19-20-1206. Interest on overpayments and unpaid contributions. (1) Except as provided in subsection (2), overpaid benefits and unpaid contributions accrue interest at the retirement system’s actuarially assumed annual rate of return, compounded monthly. Interest accrues beginning on the date that the first erroneous payment was made or that the contributions were first due and continues to accrue until the amount owed to the retirement system is fully paid.
Terms Used In Montana Code 19-20-1206
- Amount owed: means the total amount of overpaid benefits or unpaid contributions plus accrued interest as provided in 19-20-1206 and costs and fees awarded as provided in 19-20-1214. See Montana Code 19-20-1201
- Error: means any of the following, whether or not intended, that has resulted in or may result in the retirement system paying more or less on behalf of a member than is authorized to be paid or in the retirement system receiving more or less in contributions than is required to be paid to the retirement system pursuant to plan terms:
(a)a clerical mistake;
(b)a failure to fully and correctly perform a required act or provide required information;
(c)an assertion or other representation of fact or circumstance that is not complete and accurate; or
(d)an incorrect understanding, construction, or application of plan terms or other applicable law or policy. See Montana Code 19-20-1201
- Unpaid contributions: means the total amount of all monthly contributions or other contribution amounts not received by the retirement system due to an error. See Montana Code 19-20-1201
(2)If overpaid benefits or unpaid contributions resulted solely from an error made by the retirement system, the amount owed may not include interest.