31 Mar SECURE 2.0 Act Overpayment Collections
Occasionally a mistake happens in the administration of an employee benefit plan that results in an overpayment to a plan participant or beneficiary.
On December 29, 2022, Congress passed the SECURE 2.0 Act, revising the Employee Retirement Income Security Act (“ERISA”) and accompanying Internal Revenue Code (“IRC”) provisions regarding plan collection of inadvertent overpayments.
Under the new provisions, if a plan attempts to recover the overpayment from the participant, there are increased limitations to the method and amount of recovery.
If you have any questions, contact SWB for more information.