DISCHARGE CANCELLATIONS

The following conditions apply in situations where an employee is reinstated after being discharged:

  • Employee is reinstated based on a settlement agreement
  • No service credit is earned or purchasable for any period of suspension for which no retroactive pay is issued
  • Contributions for retroactive pay are mandatory
    • Member receives no additional interest
    • LACERA notifies the Auditor-Controller
    • Owed contributions are first deducted from retroactive pay; further deductions if necessary, are recovered through payroll deductions

A member who withdrew his or her contributions at the time of suspension must redeposit those contributions within 30 days of reinstatement to restore his or her previous service credit and LACERA entry age. A member who chooses to redeposit his or her contributions at a later date can restore previous service credit, but will lose his or her original entry date.

LACERA PROCEDURE AND FORM FOR TERMINATED MEMBERS WHO RECEIVE AN EXTRA CHECK IN ERROR

LACERA has developed a form to assist Human Resources departments in advising us how the department chooses to collect the money paid in error.

When a member of a contributory plan who terminates County service receives an invalid overpayment, LACERA receives a deduction. As soon as we become aware of such a situation, we will send the form to the member’s department.

The form includes the member’s:

  • Name
  • Termination date
  • Deduction accrual date
  • Overpayment Amount

The form also asks the department to indicate which method it intends to use to collect the overpayment:

  • Instruct the Auditor-Controller to reverse the LACERA deduction
  • Charge the member directly

Excess Deduction - Sample FormLearning this information as quickly as possible will enable us to process the member’s account accordingly. If the department chooses to charge the member directly, LACERA will have to reimburse the funds to the member. If the department has the LACERA deduction reversed, LACERA will not refund the member.

When you receive an “Extra Check in Error” form, please complete and return it to us at your earliest convenience. (2-25-08)


3/26/14