Integrated Pension Plan

Integrated Pension Plan

An employer-based pension in which the employer counts the employee's social security benefits as part of the pension, and therefore reduces the pension's benefits by some or all of the employee's social security check. Since 1988, however, employers have been required to pay at least 50% of the pension's defined benefit.

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Integrated pension plan. In an integrated pension plan, your employer counts part of your Social Security benefit in the defined benefit pension you're entitled to and takes that amount out of your income.

You still collect from both sources, but you receive less from your employer than you would if your plan wasn't integrated.

There is some protection, though. By law, an employer using an integrated pension plan can't reduce your private pension by more than 50%.