an individual retired and took a lump sum. several years later it was determined that the amount was 5k too little. however the person has now deceased. can the spouse or estate get the make up payment or is there any recourse to anyone's knowledge. A reference would be appreciated.

thanks

You can't be faulted for trying to correct a mistake.

Because of the time involved, I suggest a thorough analysis of what happened, and if possible, why. The purpose is not to point fingers but to identify facts. Also, it is possible that a mistake was not made, or that the amount paid was thought to be correct because someone simply did not have all the correct information.

Only after you are satisfied that the facts are all in should you consider an additional payment. It would be prudent to have the plan's administrative committee review all information and make a formal decision. The primary purpose of this is to make sure the process is well documented.

It would also be appropriate to get legal advice (competent ERISA attorney) as to who should get any such payment. The amount of any payment should be determined as of the original date of payment, and then adjusted by some reasonable interest rate. Again, the committee is probably the appropriate vehicle for determining what is a reasonable rate of interest.