Collection of Overpaid Benefits

[Guest AuditZ]

As an administrator of a newly acquired pension plan, we were asked by the Trustees to continue to make monthly pension payments on behalf of the participants, even though we had not received all the retiree files regarding payment records from the prior administrator.

Our concern was that we might be issuing payments to retirees that were in excess of what they were obligated to receive. For example, continued montly payments to a surviving spouse whose five year monthly payment option has expired.

Subsequently, to our misfortune, when records from the prior administrator arrived, this exact scenario played out and we realized that certain individuals had been overpaid. Also, to our misfortune the initial group of Trustees encountered some legal issues that forced their ouster and the new group of Trustees indicated that the overpayments would have to be paid out of our coffers.

We have requested overpayment refunds from participants and some of them have complied. Others have indicated that they will not repay anything.

Does anyone have some thoughts or strategies on how to pursue individuals who have received overpayments, yet refuse to make reimbursement?

[Guest b2kates]

did you get written direction from the prior trustees to continue the payments? with your concern did you get an indemnification for the payments?