Special rules applicable to benefit overpayments
(1) In general
(1)In general#
A plan shall not fail to be treated as described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (and shall not fail to be treated as satisfying the requirements of section 401(a) or 403) merely because—
(A) the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or
(B) the plan sponsor amends the plan to increase past, or decrease future, benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments.
(1)(A)#
the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or
(1)(B)#
the plan sponsor amends the plan to increase past, or decrease future, benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments.
(2)Reduction in future benefit payments and recovery from responsible party#
Paragraph (1) shall not fail to apply to a plan merely because, after discovering a benefit overpayment, such plan—
(A) reduces future benefit payments to the correct amount provided for under the terms of the plan, or
(B) seeks recovery from the person or persons responsible for such overpayment.
(2)(A)#
reduces future benefit payments to the correct amount provided for under the terms of the plan, or
(2)(B)#
seeks recovery from the person or persons responsible for such overpayment.
(3)Employer funding obligations#
Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under sections 412 and 430 or to prevent or restore an impermissible forfeiture in accordance with section 411.
(4)Observance of benefit limitations#
Notwithstanding paragraph (1), a plan to which paragraph (1) applies shall observe any limitations imposed on it by section 401(a)(17) or 415. The plan may enforce such limitations using any method approved by the Secretary for recouping benefits previously paid or allocations previously made in excess of such limitations.
(5)Coordination with other qualification requirements#
The Secretary may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph (1) applies.