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.
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