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Unfair Pension Takebacks: What Can Be Done to Protect Retirees

Date Published: 
Wednesday, August 31, 2011
(Pension Rights Center)

Recoupment occurs when a pension plan administrator erroneously overpays pension benefits to retirees. Often these overpayments are made for many years before anyone realizes that a mistake has been made. When a plan finally realizes it has made a mistake, it corrects future payments and recoups the overpaid amounts either by reducing future payments or demanding a lump sum. These reductions are typically done with little or no warning to retirees and with no formal process for challenging the plan’s action.