I have a client who has a small Defined Benefit plan. Recently, he discovered that an employee had embezzled funds. He wants to know how he can get the embezzled fund out of the pension plan. I have already told him that the pension assets cannot to “attached” but that he will need to payout the money and hope the employee pays he back. Does anyone else have a suggestion?

Try a Search, using various words, such as embezzle, embezzlement, etc.

Were the funds embezzled from the PLAN, or from the EMPLOYER? If against the plan, then it's possible that there could be a judgement that provides for recovery from the participant's benefit. See IRC 401(a)(13)© and ERISA 206(d)(4). But I'd certainly rely on legal counsel - the requirements are quite specific.