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
Offer made by the insurance company to insure an applicant, provided the applicant is insurable according to the underwriting standards of the company, and the applicant accepts the offer ...
Commitment that a lending institution makes to offer a loan at a stipulated interest rate at a predetermined future time, usually limited to 90 days. ...
Combination of the federal estate tax and the federal gift tax. ...
Investment risk associated with the changes in government policies that may have a dramatic effect on financial instruments. For example, if federal legislation is passed removing the ...
Same as term Coinsurance: ...
Legislation that makes insurance fraud a federal crime. This act is part of the Omnibus Crime Bill. Under the act, it is a federal crime to embezzle or misappropriate funds, money, or ...
Common law rule of negligence that imposes liability on an individual who had one last opportunity to avoid an accident but did not take it. An example is a driver who could have avoided ...
(Formerly the American College of Life Underwriters) accrediting body for the CLU (Chartered Life Underwriter) and the ChFC (Chartered Financial Consultant) designations. Provides ...
Same as term Compulsory Insurance: coverage required by the laws of a particular state. For example, many states stipulate minimum amounts of automobile liability insurance that must be ...
Have a question or comment?
We're here to help.