The Restoring Pension Promises to Workers Act of 2007 would impose limitations on a pension plan’s ability to collect money from pension recipients for overpayments.
Under current law, if a pension plan discovers that it made a mistake in a retiree’s pension benefit, the plan can recover the amount of the overpayment regardless of whether the retiree will incur a financial hardship.
The bill would prohibit a recovery by a plan in situations where it would cause a financial hardship to the retiree or where the amount involved is insignificant in relation to the plan’s overall assets and liabilities. The bill also provides that plans would only be able to recover overpayments made within three years prior to the discovery of the overpayment. Finally, the bill would require plans to notify retirees and any eligible beneficiaries of the right to appeal a decision to recover overpayments.
Read section 102 of the Restoring Pension Promises to Workers Act of 2007 [PDF]