STATE EMPLOYEE RETIREMENT COMMISSION
SUBCOMMITTEE ON REGULATIONS AND OVERPAYMENTS

MINUTES OF SEPTEMBER 28, 2011 MEETING

TRUSTEES PRESENT

Charles Casella, Robert Coffey, Thomas Culley, Linda Yelmini.

OTHERS PRESENT

Helen M. Kemp, Assistant Director, Retirement Services Division
Peggy Gray, Executive Assistant
Brenda Halpin, Director, Retirement Services Division

The meeting started at 1:04 p.m.

The Subcommittee discussed the following requests for waivers of the repayment of an overpayment.

Donna Bray (SERS) - (member) - Overpayment due to receiving a social security disability benefit

Action: Ms. Yelmini moved; Mr. Casella seconded to recommend to the Commission to deny the request for a waiver of repayment of an overpayment as Ms. Bray did not meet all the statutory and regulatory requirements required for approval and to further recommend to the Commission that overpayment should be recovered by keeping all of her retirement benefit until the money has been paid back. Unanimous decision. The Subcommittee noted that the record indicated Ms. Bray intentionally failed to disclose receipt of her social security disability payments to the Division by checking off "no" on her annual surveys (2005, 2006, 2007 and 2008) which asked if she received such benefits during the year.

Karen Heilweil (MERS) - (member) Overpayment due to receiving a workers compensation award and not reporting it to MERS.

Action: Ms. Yelmini moved; Mr. Culley seconded to recommend to the Commission to deny the request for a waiver of repayment of an overpayment as Ms. Heilweil did not all the statutory and regulatory requirements required for approval and to further recommend to the Commission that overpayment should be recovered by keeping all of her retirement benefit until the money has been paid back. Unanimous decision. The Subcommittee noted that the record indicated Ms. Heilweil and/or her counsel knew that her workers compensation payments were offset to her benefit and did not inform MERS of the payments.

Paul Hughes (SERS) - (member) - Overpayment due to outside earnings.

Action: Ms. Yelmini moved, Mr. Coffey seconded, that if Mr. Hughes does not submit his tax returns and financial affidavit to the Division as requested by October 28, 2011 (date stated in the letter he was sent), that his request for waiver be denied the and that the Division utilize any means possible to obtain repayment. Unanimous Decision

Dennis Martin (MERS) - (member) -Overpayment due to receiving a social security disability benefit

Action: Mr. Casella moved; Mr. Coffey second to recommend to the Commission to deny the request for a waiver of repayment of an overpayment as Mr. Martin did not meet all the statutory and regulatory requirements required for approval. Unanimous Decision

After discussion, Ms. Yelmini moved, seconded by Mr. Coffey to have Division Counsel Helen Kemp explore any means possible with the AG's Office, DAS, Stipulated agreements or through statutory changes in which collection of all amounts owed, and interest be paid going forward in respect to overpayments, especially when fraud or intentional inaction is involved. Unanimous Decision

The meeting was adjourned at 1:55 p.m.

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