Benefit calculation

Pensions used to be a reliable stream of retirement income, but these twists and turns could put a pension benefit in jeopardy.

CNBC's Sharon Epperson answers a viewer's question about a pension.

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.

A Mars, Inc. retiree can pursue fiduciary breach claims against the Mars Benefit Plans Committee, but not against the company, for misrepresenting the monthly retirement benefit amount to which she was entitled.