NCR detailed the payout in a booklet that Sinkoff had and later showed me. The company disclosed an initial monthly payout. But then it factored Social Security into the equation. But when Sinkoff withdrew those company contributions in a lump sum, after retirement, his monthly pension was reduced. You start seeing minus this and minus that.
Employers say pension integration plans are valid.
But the programs are confusing. But Social Security taxes buy proportionately more generous benefits for lower-income workers. By reducing the pension payout, companies can create a retirement package that evens the score. NCR said it eliminated the Social Security offset for future retirees effective Jan. 1, 1995. NCR had used a Social Security integration formula from 1971 through 1994.