Groom principal Brigen Winters, chair of the firm’s Policy group, joined the American Society for Pension Professionals & Actuaries (“ASPPA”) for their webinar, “Overpayments: Regulations, Response, Ramifications.” Winters’ statements from the webinar were featured in the ASPPA article, “Overpayments: Tips for Avoiding and Addressing Them.”
ASPPA reported that, according to Winters, “Before the enactment of the SECURE 2.0 Act, treatment of overpayments focused on trying to balance fiduciary needs of plans with administrative requirements and technicalities.”
The platform further reported that Winters said that “With the enactment of SECURE 2.0, additional protections were put in place. Plan fiduciaries generally would not violate ERISA if they did not pursue overpayments, although there are some caveats.”
ASPPA also noted that Winters shared steps employers and plan sponsors can take in handling overpayments, to include:
- Revisit the ERISA and tax environment that existed before SECURE 2.0 was enacted and overlay the rules in place since enactment in order to take into account changes that have taken place.
- Come up with rules that are administrable, and look at procedures, especially those in place and followed within the last three years.
- Look at how interest is calculated on overpayments.
- Remember that it is a fiduciary responsibility to find missing participants.
- Remember the importance of communication.
- Keep records up to date.
To read the article, click here.
