Section 38.50. Retirement allowance; underpayment.

(1) If the retirement system pays a retirant or beneficiary less in a retirement allowance than he or she is entitled to receive, then the retirement system shall do both of the following:

(a)     Pursuant to MCL 38.41, immediately correct the error, notify the retirant or beneficiary of the correction of the error  and  provide   the retirant or beneficiary with his or her correct retirement allowance.

(b)      At the election of the retirant or beneficiary, pay the underpayment in a lump sum or the actuarial equivalent.

(2) For purposes of determining the actuarial equivalent, the actuarially assumed interest rate shall be 8% with utilization of the 1983 group annuity and mortality table.

History: 2008 AACS.