29 U.S.C. § 1345 : US Code - Section 1345: Recapture of payments

Search 29 U.S.C. § 1345 : US Code - Section 1345: Recapture of payments

(a) Authorization to recover benefits
Except as provided in subsection (c) of this section, the trustee
is authorized to recover for the benefit of a plan from a
participant the recoverable amount (as defined in subsection (b) of
this section) of all payments from the plan to him which commenced
within the 3-year period immediately preceding the time the plan is
terminated.
(b) Recoverable amount
For purposes of subsection (a) of this section the recoverable
amount is the excess of the amount determined under paragraph (1)
over the amount determined under paragraph (2).
(1) The amount determined under this paragraph is the sum of
the amount of the actual payments received by the participant
within the 3-year period.
(2) The amount determined under this paragraph is the sum of -
(A) the sum of the amount such participant would have
received during each consecutive 12-month period within the 3
years if the participant received the benefit in the form
described in paragraph (3),
(B) the sum for each of the consecutive 12-month periods of
the lesser of -
(i) the excess, if any, of $10,000 over the benefit in the
form described in paragraph (3), or
(ii) the excess of the actual payment, if any, over the
benefit in the form described in paragraph (3), and
(C) the present value at the time of termination of the
participant's future benefits guaranteed under this subchapter
as if the benefits commenced in the form described in paragraph
(3).
(3) The form of benefit for purposes of this subsection shall
be the monthly benefit the participant would have received during
the consecutive 12-month period, if he had elected at the time of
the first payment made during the 3-year period, to receive his
interest in the plan as a monthly benefit in the form of a life
annuity commencing at the time of such first payment.
(c) Payments made on or after death or disability of participant;
waiver of recovery in case of hardship
(1) In the event of a distribution described in section
1343(b)(7) (!1) of this title the 3-year period referred to in
subsection (b) of this section shall not end sooner than the date
on which the corporation is notified of the distribution.
(2) The trustee shall not recover any payment made from a plan
after or on account of the death of a participant, or to a
participant who is disabled (within the meaning of section 72(m)(7)
of title 26).
(3) The corporation is authorized to waive, in whole or in part,
the recovery of any amount which the trustee is authorized to
recover for the benefit of a plan under this section in any case in
which it determines that substantial economic hardship would result
to the participant or his beneficiaries from whom such amount is
recoverable.