Federal Register #RIN 1212AB47

PBGC Proposed Rule: Improvements to Recoupment of Benefit Overpayments

This notice announces a proposed regulatory change by the Pension Benefit Guaranty Corporation (PBGC) regarding the recoupment of benefit overpayments in single-employer terminated pension plans. - Government Buyer: - Pension Benefit Guaranty Corporation (PBGC) - No OEMs or vendors are involved, as this is not a procurement action. - No products or services are requested; this is a regulatory proposal. - Key Proposed Rule Changes: - Recoupment of overpayments would be set at a flat rate of 5% of a participant's monthly benefit. - Recoupment from a participant's surviving beneficiary would be eliminated. - PBGC would not seek recoupment for net overpayments of $250 or less. - Recoupment would generally not be pursued on revised benefit determinations. - The notice is a request for public comment on these proposed regulatory changes, not a solicitation for goods or services.

Description

The Pension Benefit Guaranty Corporation (PBGC) is proposing to improve its rules on recoupment of benefit overpayments under PBGC's insurance program for single-employer terminated plans trusteed by PBGC. These proposed improvements include changing the recoupment methodology to a flat rate of 5 percent of a participant's monthly benefit and eliminating recoupment from a participant's surviving beneficiary. The proposal also includes provisions to not seek recoupment of net overpayments of $250 or less and to avoid recoupment on revised benefit determinations in most cases. Comments on the proposed rule must be submitted by September 4, 2026.

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