By Sean Forbes, Bna.com
June 16, 2015
Pension overpayments result in a host of tough questions when plan fiduciaries attempt to recoup losses, such as the rights of the administrator to a full recovery and the rights of the participants to retain the full monthly payment to which they’re entitled, attorneys said in a webinar.
The first step is to adjust the payments to the correct amount, but after that, the situation “gets murky,” said Brian J. Dougherty, a partner in the Philadelphia office of Morgan Lewis & Bockius LLP, during a June 11 webinar on overpayments held by the American Bar Association’s Joint Committee on Employee Benefits.
The fiduciary of a plan covered under the Employee Retirement Income Security Act can invoke administrative claims procedure on its behalf, and then adjudicate its own claim, but “that’s sort of awkward,” Dougherty said.