Just curious if anyone knew of any court cases in which a plan sponsor tried to recover an overpayment to a participant in a defined contribution plan?

I know that there have been a number. Generally, any action would have to be brought under 502(a)(3) of ERISA which provides for equitable relief. You would be seeking a remedy of "restitution" and a participant would have "equitable" defenses. In other words, just proving an overpayment might not be enough.

The following may be DB cases, but I think the same analysis would apply:

In sum circumstances Courts have refused to allow a Plan to recover where "in reliance on the correctness of the amount of benefits, [the Particpant] changes his position so that it would be inequitable to compel him to make restitution. Wells v. Unites States Steel & Carnegie Pension Fund 950 F.2d 1244,1251 f.n. 3 (6th Cir. 1992); Gallagher v. Park West Bank & Trust Co. 11 F.Supp. 2d 136, 140 (D. Mass. 1998) citing Restatement (Second) of Trusts §254.

Other Courts have analyzed recovery of overpayments under an "unjust enrichment" theory or similar nuances of "restitution." However, these Courts have noted that one factor which must be considered is whether the participant should have "reasonably expected" to repay the Plan. Harris Trust and Sav. Bank v. Provident Life and Acc. Ins. Co. 57 F.3d. 608, 615-617 (7th Cir. 1995), Health Cost Controls v. Harlow 825 F.Supp. 152, 157-158 (W.D. Ky. 1993). See also Provident Life & Accident Ins. Clo. v. Waller 906 F.2d 985 (4th Cir.) cert. denied 498 U.S. 982 (1990).

[This message has been edited by KJohnson (edited 12-06-1999).]