To Recoup or Not to Recoup – What Happens When a Participant or Beneficiary is OverpaidWednesday, April 10, 2019 (3pm - 4pm US/Eastern) |
This is a member-only webinar. *
In order to retain its qualification status, a retirement plan must provide a written plan document that complies with ERISA and the Code. In addition, the plan must operate in compliance with those written plan documents. Therefore, when a plan makes an overpayment to a participant or beneficiary, this could be considered an “operational failure” which arises solely from the failure to follow plan provisions. In such a case, it seems that the plan must try to recoup the overpayment. However, many plan sponsors are concerned about the negative impact to participants and may temper recoupment efforts. Therefore, there is a conundrum for plan sponsors… Are plan sponsors required to engage in all recoupment efforts possible – regardless of harm to the participant/beneficiary? Or, if the plan sponsor decides to forego recoupment efforts, is it breaching a fiduciary obligation to the plan?
Recently, the Hill has taken interest in this topic with proposed legislation stating that it will not be a breach of fiduciary duty if a plan sponsor decides not to attempt recoupment of an overpayment. However, this legislation raises the issue of whether there are instances when the plan sponsor should still attempt recoupment or is even allowed to attempt recoupment.
Please join us for a discussion of current recoupment practices and possible legislative changes that we might see. We will be joined by Peter Hunt of Pillsbury Winthrop Shaw Pittman, LLP to lead our discussion.
To register for the webinar, click on the "Register Now" link at the top of this page (you will need your username and password to register).
*If you are not a member and would like to participate in the webinar, please contact ERIC at 202-789-1400 or e-mail: memberservices@eric.org. .