(a) Recoupment of benefit overpayments. If at any time the PBGC determines that net benefits paid with respect to any participant in a PBGC-trusteed plan exceed the total amount to which the participant or his or her beneficiary is entitled up to that time under title IV of ERISA, and the participant or beneficiary is entitled to receive future benefit payments, the PBGC shall recoup the overpayment in accordance with paragraph (c) of this section and § 4022.82. Notwithstanding the previous sentence, the PBGC may, in its discretion, recover overpayments by methods other than recouping in accordance with the rules in this subpart. The PBGC will not normally exercise this right unless net benefits paid after the termination date exceed those to which a participant or beneficiary is entitled under the terms of the plan before any reductions under subpart D.

(b) Reimbursement of benefit underpayments. If at any time the PBGC determines that net benefits paid with respect to a participant in a PBGC-trusteed plan are less than the amount to which the participant or his or her beneficiary is entitled up to that time under title IV of ERISA, the PBGC shall reimburse the participant or beneficiary for the net underpayment in accordance with paragraphs (c) and (d) of this section and § 4022.83.

(c) Payments subject to recoupment or reimbursement. The PBGC shall recoup net overpayments and reimburse net underpayments made on or after the latest of the proposed termination date, the termination date, or, if no notice of intent to terminate was issued, the date on which proceedings to terminate the plan are instituted pursuant to section 4042 of ERISA.

(d) Interest. The PBGC will compute interest on overpayments and underpayments using the interest rate established for valuing immediate annuities as set forth in part 4044, appendix B, of this chapter according to the following rules: