Integration With Social Security

Integration With Social Security means:
a method of reducing an employee pension according to U.S. Internal Revenue Service (IRS) procedures:

1. Offset method. This is restricted to a defined-benefit plan under which a mandatory percentage of the monthly Social Security benefit payable to a retired employee is subtracted from the monthly retirement benefit payable to that employee under a business firm's qualified retirement plan.

2. Integration method. This is used with a defined-benefit plan or a defined-contri- bution plan under which a basic level of compensation is established for a retired employee so that (a) for compensation above this level, the employee receives a greater retirement benefit, or (b) for compensation below this level, a smaller benefit.