Recovery of Overpayment

Purpose

To outline the procedure for recovery of overpayments to District employees.

Procedure:

1. When an overpayment is discovered, the employee shall be notified in writing by the Payroll Clerk, using the form letter shown in attachment A. This notification will include:
   1. amount of the overpayment;
   2. when and why the overpayment occurred; and
   3. a referral to the Payroll & Benefits Manager to arrange a repayment schedule.
2. The Payroll & Benefits Manager will attempt to obtain written consent to a repayment schedule from the employee. Any agreement reached will be confirmed in writing, including a "Statement of Understanding" as shown in attachment B.
3. If the employee refuses to consent to a repayment schedule, an opportunity will be provided to give reasons therefore, by arranging an appointment with the Payroll & Benefits Manager.
4. If the employee does not consent to a repayment schedule as indicated in paragraph 3, the matter will be referred to the Assistant Chancellor - Human Resources.

ATTACHMENT A

TO:
FROM: ____________ ,  Payroll Clerk 
SUBJECT: PAY ADJUSTMENTS

An audit reveals that an error has been made for one or more of the reasons given below, and your pay needs to be adjusted. Please respond, either orally or in writing, to the Payroll/Records Supervisor within five (5) working days after receipt of this notice. My supervisor's name is __________ and may be reached at 619-388-6586.

_____ The State Teachers' Retirement System (STRS) notified the District that you have been a member of the retirement system since_________.  This means that retroactive contributions must be taken from your pay to correct your account with STRS for service credit purposes. The total amount you owe is $_______.  For large sums, if your assignment is continuous, we will prorate the amount over several months.

_____ Payroll calculation error.

_____ You were erroneously placed on the wrong range/step. You may wish to discuss this with the Human Resources Technician in the Classification and Compensation Office (Telephone: 619-388-6576).

_____OTHER: ____________________________________________________________________________

________________________________________________________________________________________

REMARKS: ______________________________________________________________________________

________________________________________________________________________________________

 

ATTACHMENT B
STATEMENT OF UNDERSTANDING

I understand the explanation of an overpayment made to me. I hereby authorize the District to deduct $_________; from my monthly pay to offset this indebtedness. I further understand that should I terminate before liquidating this overpayment fully the balance is due and payable at the time of termination

_____________________________Signature            __________________Date