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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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%.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Under such circumstances, a nonintegrated pension with an accrual rate of 1 percent, based on final earnings of $100,000, would generate a replacement rate of 30 percent, compared with 34 percent for the integrated pension plan.
First, given the very different way that excess-rate and offset integrated plans are structured, they need to be treated differently in the examination of replacement rates of integrated pension plans. Indeed, offset plans are generally estimated to have higher replacement rates than excess-rate plans have, and the difference grows as earnings increase.
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