Johnetta Bond with the DC Retirement Board is requesting the following information. How does your defined contribution plan refund members when you have determined they have over-contributed to the plan. DC Teachers hired before 11/1/1996 contribute 7% of their base pay towards retirement, members hired on or after 11/1/1996 contribute 8%. Situation: A member contributes 8% when they should have contributed 7% due to an incorrect hire date. Member Contributions were forwarded to the Plan each pay period during entire employment. How does your defined contribution plan refund the member the excess if not detected until after retirement. Do you send overpaid contributions back to the employer to refund member? Or, do you refund member directly from the Plan assets? Or, not at all?
Note: NPEA respectfully requests respondents share as much as they can via the blog so everyone can learn from those experiences. If an issue is overly technical, we would greatly appreciate respondents who are willing to be contacted include their contact information within their blog post. Thank you!
