[§88-106.5]  Compromise and settlement. The board may compromise or settle any claim for benefits under this chapter;provided that, if the compromise or settlement would result in a personreceiving benefits that the person would not otherwise, as a matter of law, beentitled to receive, the compromise or settlement shall be subject to theapproval of the attorney general and may be made only if:

(1)  The settlement or compromise relates to or arisesout of a representation made to a member concerning the member's eligibilityfor benefits under this chapter;

(2)  The representation:

(A)  Was made in writing by an employee of thesystem with authority to make representations on behalf of the system as toamounts of and eligibility for benefits under this chapter; and

(B)  Was erroneous as to the amount or class ofcredited service to which the member was entitled;

(3)  The member, in good faith and reasonable relianceon the representation, retired or terminated the member's status as an employeeor the member's membership in the system; and

(4)  The settlement or compromise will preventmanifest injustice. [L 2005, c 57, §1]

 

Note

 

  Applies to claims arising on or after May 17, 2005.  L 2005,c 57, §3.