Why not charge off the overpayments made to retirees to administrative expenses or reserves?
A. Charging the overpayments and overcrediting to administrative expenses raises legal and fiscal questions and shifts the burden entirely to current Tier One/Tier Two members and employers. It is also not justifiable from a fiduciary standpoint because the direct recovery method equitably aligns the burden of recovery with the benefit received. Charging the overpayments and overcrediting to reserves raises similar legal, fiscal, and fiduciary concerns. This approach would also create a benefit/burden mismatch between former and current members and employers.
