29 C.F.R. § 4022.81 — General rules.

(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:

(1) Overpayments before recoupment begins. Except as provided in paragraph (d)(2), no interest is charged on overpayments from the date of the payment to the date on which recoupment begins.

(2) Receipt of both overpayments and underpayments. If both benefit overpayments and benefit underpayments are made with respect to a participant, the PBGC will determine the amount of the net overpayment or underpayment by charging or crediting interest on each payment from the first day of the month after the date of payment to the first day of the month in which recoupment begins. If the net overpayment thus computed is greater than the sum of the actual overpayments (unadjusted for interest to the date on which recoupment begins), computations under § 4022.82 will be based upon the sum of the actual overpayments.

Pension Law Library · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4022.81&asof=1997-07-01 · printed October 16, 2026. Unofficial copy compiled from official federal sources; verify against the official text before relying on it.