As Social Security slants benefits in favor of lower-paid workers,the Internal Revenue Service permits employers to adjust pension contributions so that the overall contributions (pension plus Social Security)are nondiscriminatory.This adjustment permits employers to increase pension contributions for highly-compensated employees.Adjusting contributions to consider Social Security contributions is called

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Adjusting contributions to consider Social Security contributions is called integration. This adjustment allows employers to increase pension contributions for highly-compensated employees while still ensuring overall contributions (pension plus Social Security) are nondiscriminatory. This is because Social Security benefits disproportionately favor lower-paid workers, so integration allows for a more balanced approach to retirement benefits for all employees.

As Social Security Slants Benefits in Favor of Lower-Paid Workers,the