"Separate question - can your pension payout be reduced AFTER you start receiving the benefit? "
your friend should talk to the benefits department and yes, there are situations where pension could be cut/reduced (even after you have been collecting it for a while). if plan is terminated, if employee fails and plan is transferred to pension benefit guarantee corporation (insurance plan for pensions), the benefits will be recalculated and capped at the top . check out pbgc as others mentioned .