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
Person who is expressly or by implication asked to visit property in the possession, care, or control of another person. The inviter has the obligation to render his or her property safe ...
Liquid property that can be converted easily to cash. For example, a policyowner can borrow readily against the cash value of a life insurance policy. ...
Bond that provides additional security for a loan. ...
Loss of a key person due to death, disability, sickness, resignation, incarceration, or retirement. Because of the expertise of such an individual, there could be a loss of income, market ...
Acquisition and employment of assets in order to maximize the return on these assets through: establishment of financial planning objectives; development of financial plans by which these ...
Business income coverage form that covers an insured business in the event that a manufacturer's operations are interrupted or suspended, thereby resulting in a monetary loss because a ...
General: net premium, plus operating and miscellaneous expenses, and agent's commissions. Life insurance: premium before dividends are subtracted. ...
Wrong against the government or society as a whole. An individual representing the state (usually the district attorney) brings an action on behalf of the state against an individual (s) or ...
Clause found in a marine insurance policy that states that the policy will not pay any claims less than a given amount but will pay claims in excess of that amount. The purpose of this ...
Have a question or comment?
We're here to help.