Social Security is common within many benefits plan. What type is/are the method(s) used for Social Security integration?

Question

Quizplus · Accepted Answer

The methods used to determine Social Security integration for benefits plan is excess and offset. The goal of the integration is to correct the disparity in retirement benefits for higher income workers versus lower-income workers. The excess method of integration defines a compensation level called the integration level. The plan then provides a higher rate of benefits for compensation above the integration level. The maximum permitted disparity is 26.25 percent. The offset method has no integration level. The plan formula is reduced by a fixed amount or some formula amount designed to represent the existence of Social Security. No more than half of the benefit provided under the formula without the offset may be taken away by an offset.

Social Security Is Common Within Many Benefits Plan