In by ombudsman

Two State of Alaska retirees complained that the Division of Retirement and Benefits is pursuing reimbursement of COLA benefits the agency overpaid to the complainants after they moved out of state and provided proper notice of their address changes. The Ombudsman learned that DRB is required by statute to recover overpayments plus interest, regardless of fault, if the complainant does not qualify for waiver of the adjustment as provided for in statute. It is the agency’s position that the complainants do not qualify for a waiver because they had reason to know that their monthly benefit payments were in error when the amount did not change with the cessation of COLA payments after they notified the agency of their changes in address. In one case, the complainant failed to file a timely appeal requesting a waiver of the repayment requirement. The complainant may appeal up to the Department commissioner and then if denied to the Office of Administrative Hearings. While this complaint was open, the agency agreed to accept a late-filed appeal from the complainant and provided the complainant with the proper appeal paperwork. In the other case, the complainant is filing an appeal requesting a waiver of the repayment requirement, making the complaint premature for further Ombudsman review. (A2017-0403 & A2017-0460)