HB 1056 Summary: Financial Accountability, Integrity, and Recovery Act of 2018

• Allows plans and retirement systems to offset overpayments and erroneous benefit payments against members' net wages, with employers required to withhold at least 10% of wages until amounts are repaid, following 14-30 days' written notice.

• Prohibits employers and employing units from settling employee disputes regarding health benefits without written authorization from the Plan's Executive Administrator, and voids any settlement provisions that retroactively reinstate coverage more than one year prior to settlement.

• Grants the State Health Plan for Teachers and State Employees priority lien status over all nongovernmental liens on damages recovered from liable third parties, with lien amounts capped at 50% of total damages exclusive of collection costs.

• Authorizes retirement systems and the State Health Plan to attach or garnish credit card receipts and third-party payments from providers and employers to collect overpayments and amounts owed, with direct receipt constituting sufficient discharge.

• Prohibits members whose retirement benefits were forfeited from subsequently purchasing or repurchasing those forfeited benefits or associated creditable service, and restricts reciprocal service credit eligibility for members first hired on or after January 1, 2021.