But not necessarily PERS. The PERS Strunk/Eugene recovery is in full swing now. I got my repayment letter while I was gone on vacation. Both the amount owed and the repayment amount were correct (good news), but that's not the story with many people I've heard from. We have instances of people being asked to repay more than the law compels (10%), and people asked to repay amounts they claim not to owe. I trust that PERS will get these issues sorted out.
Unfortunately, a much larger problem remains. The new method compels retirees to repay ONLY what they owe, not a penny more. Since the payment amount adjusts annually with any COLA, there is no simple way for individuals to track their cumulative payments as PERS does not send out monthly statements. Consequently, there is no easy way for an individual to determine how much he/she has repaid, much less what the remaining balance is. Retirees have asked PERS if this information will show on the 1099R - nope; on the irregular statements - not really. This means that although we have an obligation to repay a specific amount, PERS does not feel any obligation to provide us with a periodic statement of our residual balance. For many people this is very disquieting. PERS has not been a paragon of accuracy over the years, yet they expect us to believe them that they will stop the payments when all our required payments have been made. It seems to me that PERS should be sending out annual statements of balances remaining. It isn't as if this information isn't available. PERS is calculating it in real time, every month, and there is no reason except the small financial hit required to send out an extra piece of paper - possibly with the 1099R - at the beginning of each year. Supposedly, there are 20,000 retirees paying back amounts monthly under the current plan. Suppose that the cost of adding one piece of paper to the envelope that already includes the 1099R is 20 cents (that's probably an overestimate, but), we are talking an additional $4000 per year. Contrast that with the $164 million that PERS is supposed to be collecting. If everyone pays up in 10 years, PERS will spend an additional $40,000 in ten years to recover $164 million. That represents 0.002% of the amount collected. How would that compare with a single piece of litigation to challenge PERS if an individual thinks PERS has miscollected, misapplied payments, or overcharged an individual? This strikes me as penny wise and pound foolish.
If you think PERS should be required to send you an annual statement of the amount you've repaid and what you still owe for a mistake YOU DIDN'T MAKE, please let them know.