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Suspension/resumption of benefits


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Unique situation - would appreciate any thoughts/insights.

Background: Participant worked in disqualifying employment for more than a decade while receiving pension benefit. Administrator found out and suspended benefits several years ago. During suspension (and continued DE), participant reached age such that benefits should have resumed at 75% rate, but didn't. Consequently participant has received a large overpayment, but also didn't receive 75% benefits for a several-year period during which they should have been paid. We're now trying to set things straight.

Question: Must the fund repay several years' worth of unpaid 75% benefits in a lump sum, and then resume monthly reduced benefits? Or can the fund simply offset that unpaid amount against the participant's overpayment, arrive at a net overpayment, and then resume monthly reduced benefits? This is apart from any separate action the fund may take relative to the overpayment - just want to get the resumption of benefits right.

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Is this a multiemployer fund?

What do you mean by "reached age such that benefits should have resumed at 75% rate"?  

Either way, I would say this is a job for the lawyers to handle.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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