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Multiemployer pension plan. Participant files an application for benefits. States he is not married and chooses a non-spousal, 60 sum certain form of payment. Lists son as his beneficiary. Participant received payments for about a year and dies. Just to complicate matters, participant never cashed his payments. Son began receiving the payments that participant was entitled to before his death, along with the remaining payments for over a year now (and continues to do so). The Fund has now learned that participant was married at his effective date and at his death. Spouse now wants her pension benefit. Not that we are obligated to follow it, but the probate court has awarded her spousal benefits. No idea if it is applicable, but our plan document does include a statement that if a participant, beneficiary, ect makes a false statement/furnishes fraudulent information relevant to a claim for benefits, then benefits not vested shall be denied, suspended, or discontinued. But the fact that we are dealing with vested benefits, I'm not sure we could have the participant's actions effect the wife's entitlement to benefits. Any suggestions on how to handle this situation? Just spitballing here, but it seems like we need to stop the son's payment ASAP. With SECURE Act 2.0, its likely gonna prove difficult to seek an overpayment from son, unless we have on record some fraudulent statement made by him, which I doubt. Once the wife applies, we should adjust the form of payment to a spousal pension, and give her the payments participant was entitled to prior to his death, and spousal payments until her death. I don't like the thought of having to pay out some benefit periods twice, but I'm not sure there is any way around it. We probably should also set the record straight with the probate court about federal preemption. Any and all guidance is appreciated.

An employee of a sponsor of a 401(k) plan fraudulently caused deposits, in excess of what was deferred, to be made for the employee and several others in a 401(k) plan. Now that this has been discovered, the question arises whether these additional contribution could be returned to the sponsor under ERISA §403(c)(2), mistake of fact. This occurred in 2017 so we are within the one-year time constraint. Thoughts?

An unprecedented number of deaths are going unreported by the SSA. In fact, almost 50% less deaths! This is due a re-interpretation of Section 205® of the Social Security Act that took place in November of 2011 that prohibits the SSA from reporting "State Death Records" in the Public Death Master File (DMF). The SSA is still reporting deaths from every State in the country but these deaths were reported by a "First Party Source" (Family, Friends, Funeral Homes, Hospitals, Coroners, etc.) Below are the annual totals of deaths reported by the SSA from 2010 to 2015: Annual Deaths Reported by the SSA DMF: 2010 to 2015 *2010: 2,450,902 *2011: 2,318,302 (5.4% Decrease - SSA changes took place in NOV 2011) *2012: 1,150,663 (35.5% Decrease) *2013: 1,474,973 (39.9% Decrease) *2014: 1,284,624 (47.6% Decrease) *2015: 1,259,106 (48.6% Decrease) This has led to million of pension overpayments to deceased participants (fraud) and crippled many already underfunded pension plans. This is compounded by the fact that many Defined Benefit plan sponsors use direct deposit and these accounts are shared with a spouse, relative, and/or caretaker. It's the easiest fraud to get away with! What's funny (or not funny) is that the Federal Government IS using these "State Death Records" for government agencies such as the IRS and Medicare but they won't share deaths with the Public including Local and State Government. For more information, please contact Kyle McDonald at PBI at 415-299-8249 or at kylem@pbinfo.com.