Integrated pension plan

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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.

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%.

References in periodicals archive ?
The contract covers software licences, and implementation, support, maintenance and operating services for an integrated pensions and insurance system based on Softronic's ITM platform.
Furthermore, integrated pensions are estimated to have higher replacement rates than those of nonintegrated pension plans at high earnings levels and lower rates at low earnings levels.(13)
When all of the restrictions on the data are taken into account, there are 2,197 worker-pension observations, 1,375 of which are covered by a non, integrated pension and 822 by an integrated pension.(20) Of those with integrated pensions, 502 have excess-rate provisions, while 387 have offset provisions.(21)
Separate weighted regressions are run for-the samples of workers with nonintegrated and integrated pensions wherein the dependent variable is the replacement rate or annual benefits.
The tenure effect, conversely, is smaller than for nonintegrated plans, with a year's increase in tenure resulting in an increase of 0.67 percentage point in the replacement rate for all integrated pensions.
Integrated pensions have higher replacement rates only at the lowest tenure level (10 years).
Bender, "Characteristics of Individuals with Integrated Pensions," Social Security Bulletin, vol.
(5) See Bender, "Individuals with Integrated Pensions."
(14) See Slusher, "Pension Integration," and Bender, "Individuals with Integrated Pensions."
(28) One of the findings from Bender, "Individuals with Integrated Pensions," is that a worker is more likely to have an integrated pension if he or she has more than one pension.
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