PBGC Provides Guidance on Recoupment of Overpayments

The Pension Benefit Guarantee 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 among other things, changing the recoupment methodology to a flat rate of 5 percent of a participant’s monthly benefit (with exceptions) and eliminating recoupment from a participant’s surviving beneficiary. Comments must be submitted on or before September 4, 2026.