rocknrolls2 Posted February 13, 2020 Posted February 13, 2020 A situation has arisen where a plan has determined that a participant had been overpaid in her pension benefit payments. The plan intends to recoup the overpayment by asking the participant to agree to have amounts deducted from prospective pension payments over several months. Is there a specified percentage limit of pension benefit payment that must be applied in determining the maximum amount that may be deducted from the participant's prospective pension payments? If so, what is it and what is the statutory or regulatory citation where such limitation can be found?
david rigby Posted February 13, 2020 Posted February 13, 2020 Have you reviewed the most recent EPCRS document(s)? https://www.irs.gov/retirement-plans/correcting-plan-errors I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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