Pension Plan Integration With Social Security
Definition of "Pension plan integration with social security"
Offset or subtraction of Social Security benefits from earned benefits in a qualified pension plan to reduce a pension benefit. Many business firms offset their pension payments by the amount of a retiree's Social Security benefit. For example, John Smith has earned a monthly pension benefit of $950. His monthly Social Security payment is $688. If his employer applies 100% integration, his pension is reduced by the entire Social Security benefit; he will receive $950 minus $688, or $262 monthly. More commonly, integration is based on a percentage of Social Security. With 50% integration, 50% of the Social Security benefit ($344) would be subtracted from the $950 pension for a monthly benefit of $606. Offsets were limited by the tax reform act OF 1986.
Popular Insurance Terms
Hospital insurance program that provides medical professional liability insurance coverage to non employed hospital physicians. The objective of this means of insurance coverage is to ...
Coverage for negligent acts or omissions of an operator of a motel or hotel resulting in bodily injury to guests and damage or destruction of a guest's property. ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
Income paid under a disability policy that is not covered under workers compensation benefits. It is usually expressed as a percentage of the insured's income prior to the disability, but ...
Bureau insurer that files its statistical and underwriting experience with a rating bureau. ...
Coverage if an insured is legally liable for bodily injury or property damage caused by an automobile. The personal automobile policy (PAP) and the business automobile policy (BAP) cover ...
Sums payable to the winning plaintiff by the losing defendant in a court of law; can take any or all of these forms: general, punitive, and special. ...
Purchasing bond investments that mature at different time intervals. ...
Describing the time of payment of face amount (face of policy) upon the death of the insured, or when the cash value in an endowment insurance policy equals the face amount. ...
Have a question or comment?
We're here to help.