Code of Alabama
Division 4 - Eligibility to Participate.
Section 45-37A-51.169 - Correction of Errors.

(a) The system shall have the authority to recalculate benefits if a mistake in payments has occurred. If the system mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as practicable after the mistake is discovered.
(b) If the benefit was mistakenly set too low, the system shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate of five percent compounded annually per annum from the date the unpaid amounts accrued to the date of payment.
(c) If the benefit was mistakenly set too high, the system may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if the amount of benefits was mistakenly set too high; and the error was undiscovered for three years or longer; and the error was not the result of incorrect information supplied by the affected member or beneficiary; then upon discovery of the mistake, the benefit shall be adjusted to the correct level; but the recipient of the benefit need not repay the system the excess amount received in error for the period exceeding the past 36 months. The recipient shall repay the overage for the immediate 36 months, unless otherwise provided herein.

Structure Code of Alabama