PBGC Benefit Overpayment Recoupment

Current understanding

The PBGC has proposed to simplify how it recoups benefit overpayments from participants in single-employer terminated plans by adopting a flat 5% monthly benefit reduction rate and eliminating recoupment from surviving beneficiaries. Status: proposed rule. The change is procedural/administrative and would replace the current age- and amount-based recoupment schedule.

Evidence log

• 2026-07-06 — Improvements to Rules on Recoupment of Benefit Overpayments: cross-connection with pbgc-single-employer-interest-assumptions: Both are PBGC rulemakings governing single-employer terminated plans — one sets valuation interest assumptions, the other governs recoupment of resulting overpayments. (novelty: 2)

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