Pension Overpayments Raise Tough Questions About How to Recoup Losses, Attorneys Say

Via Bna.com,

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.

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