Rev. Rul. 68-315

The Internal Revenue Service has formulated the additional guides set forth below for determining whether disability benefits under an employees' pension or annuity plan, intended to qualify under section 401(a) of the Internal Revenue Code of 1954, are properly integrated with disability benefits under the Social Security Act.

An employees' pension plan provides for a normal retirement benefits integrated with social security benefits in accordance with the guides set forth in Mimeograph 6641, C.B. 1951-1, 41, as modified by Revenue Ruling 61-75, C.B. 1961-1, 140. Besides the normal retirement benefit, the plan provides for a benefit payable in the event of `total and permanent disability' occurring before normal retirement age. The disability benefit is payable only after normal retirement age under eligibility conditions that satisfy the provisions of paragraph 3 of Revenue Ruling 62-152, C.B. 1962-2, 126. The employer does not also have in existence another qualified pension, annuity, profit-sharing, or stock bonus plan that involves integration with the Social Security Act and covers employees included in the subject plan.

In an excess plan of either the fixed benefit or unit credit type that does not provide for payment of any disability benefits involving integration prior to normal retirement age, the plan disability benefit described above will be considered properly integrated with disability benefits provided by the Social Security Act if the amount of such plan benefit does not exceed the maximum normal retirement benefit that would be permitted, if the employee's service had continued to his normal retirement date, in accordance with Mimeograph 6641, as modified by Revenue Ruling 61-75.

Revenue Ruling 62-152 is hereby amplified.