[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4022.82]

[Page 790-791]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4022_BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
--Table of Contents
 
Subpart E_PBGC Recoupment and Reimbursement of Benefit Overpayments and 
                              Underpayments
 
Sec. 4022.82  Method of recoupment.

    (a) Future benefit reduction. The PBGC will recoup net overpayments 
of benefits by reducing the amount of each future benefit payment to 
which the participant or any beneficiary is entitled by the fraction 
determined under paragraphs (a)(1) and (a)(2) of this section, except 
that benefit reduction will cease when the amount (without interest) of 
the net overpayment is recouped. Notwithstanding the preceding sentence, 
the PBGC may accept repayment ahead of the recoupment schedule.
    (1) Computation. The PBGC will determine the fractional multiplier 
by dividing the amount of the net overpayment by the present value of 
the benefit payable with respect to the participant under title IV of 
ERISA. The PBGC will determine the present value of the benefit to which 
a participant or beneficiary is entitled under title IV of ERISA as of 
the termination date, using the PBGC interest rates and factors in 
effect on that date. The PBGC may, however, utilize a different date of 
determination if warranted by the facts and circumstances of a 
particular case.
    (2) Limitation on benefit reduction. Except as provided in paragraph 
(a)(1) of this section, the PBGC will reduce benefits with respect to a 
participant or beneficiary by no more than the greater of--
    (i) Ten percent per month; or
    (ii) The amount of benefit per month in excess of the maximum 
guaranteeable benefit payable under section 4022(b)(3)(B) of ERISA, 
determined without adjustment for age and benefit form.
    (3) PBGC notice to participant or beneficiary. Before effecting a 
benefit reduction pursuant to this paragraph, the PBGC will notify the 
participant or beneficiary in writing of the amount of

[[Page 791]]

the net overpayment and of the amount of the reduced benefit computed 
under this section.
    (4) Waiver of de minimis amounts. The PBGC may, in its discretion, 
decide not to recoup net overpayments that it determines to be de 
minimis.
    (5) Final installment. The PBGC will cease recoupment one month 
early if the amount remaining to be recouped in the final month is less 
than the amount of the monthly reduction.
    (b) Full repayment through recoupment. Recoupment under this section 
constitutes full repayment of the net overpayment.

[63 FR 29354, May 29, 1998]