Unfair Pension Takebacks: What Can Be Done to Protect Retirees
Date Published:
Wednesday, August 31, 2011 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.
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Spotlight
Wondering how much you can contribute to your retirement plan this year? Read our helpful fact sheet to find out. The fact sheet also includes contribution limits for previous years. Read the fact sheet.
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Did You Know?
A joint-and-survivor annuity is an annuity that pays a monthly benefit over the lives of the participant and his or her surviving spouse. This is the default form of benefit for married participants in most defined benefit pension plans. Because it lasts for the life of both the worker and the spouse, a joint-and-survivor annuity typically results in a lower monthly benefit payment than a single-life annuity.
