Collection of Overpayments from Retirement Bene-

R2-8-805. Collection of Overpayments from Retirement Bene- A. Notwithstanding A.R.S. § 38-768, the ASRS may reduce a person’s benefit pursuant to this Section. B. Upon retirement, the ASRS shall reduce the amount of a member’s retirement benefit by the amount of any overpayment s that have not been reimbursed to the ASRS, pursuant to R2-8- 803 as follows: 1. If the member elects to receive a lump sum or partial lump sum benefit, the amount of the lump sum or partial lump sum shall be reduced by the amount of the overpayment to no less than $5.00 and the ASRS shall pursu e overpayment collections for any remaining overpayment amount pursuant to this Article; 2. If the member elects to receive retirement benefits as a monthly annuity and the amount of the overpayment i s equal to or less than the amount of the member’s first annuity disbursement minus $5.00, the ASRS shall reduce the amount of the first annuity disbursement b y the amount of any overpayment to no less than $5.00; 3. If the member elects to receive retirement benefits as a monthly annuity and the amount of the overpayment exceeds the amount of the member’s first annuity disbursement plus $5.00, the ASRS shall reduce the amount of the first annuity disbursement by the amount of th e overpayment to no less than $5.00 and pursue collectio n pursuant to subsection (C). C. The ASRS shall reduce a member’s or alternate payee’ s monthly annuity as follows in order to offset any overpayments which have not been reimbursed or collected pursuant to this Article: 1. The ASRS shall reduce the member’s monthly annuity b y up to 10% for 36 months, if the amount of the overpayment can be collected by the ASRS within that time. 2. If the amount of the overpayment cannot be collecte d pursuant to subsection (C)(1), the ASRS will notify th e arrange- member that the member must make payment ments within 60 days of the date on the notice. If th e member does not make payment arrangements within 6 0 days of the date on the notice, the ASRS shall actuariall y reduce the amount of the member’s monthly annuity. D. Notwithstanding subsection (B), the ASRS shall not reduce a esti- member’s or alternate payee’s monthly annuity by an mated Social Security disability income amount while th e member is pursuing a Social Security disability income deterdocu- mination pursuant to R2-8-305, if the member submits mentation to the ASRS every six months informing the ASR S of the status of the member’s Social Security disability incom e request until a determination is made regarding the amount of Social Security disability income. Historical Note New Section made by final rulemaking at 23 A.A.R. 2750, effective November 13, 2017 (Supp. 17-3). 26-1 Page 49 2 A.A.C. 8 Arizona CHAPTER 8. STATE