FICA Alternative Plan
(This plan only applies to substitute, temporary, and some part-time employees)
What is a 457 FICA Alternative Plan?
The 457 FICA Alternative Plan is a savings program for employees who are not eligible to participate in the State Employees’
Retirement System. These individuals are normally your part-time, seasonal, and temporary employees.
How much is contributed?
You contribute 7.5% of your wages on a pre-tax basis (for income tax purposes) instead of paying Social Security taxes that otherwise would be determined and paid by you on an after-tax basis. You will see your plan contribution amount reflected on your paycheck stub. Contributions are credited to an individual account in your name under the plan.
A 403(b) plan, also known as a tax-sheltered annuity, is a tax-advantaged retirement savings plan available for public education organizations. Contributions are made on a pre-tax basis and investment earnings grow tax deferred until withdrawal, assumed to be retirement.
INFO 403 & 457
More information on 403(b) & 457 (b) Plans, including a list of Approved Vendors can be found below.
We are excited to offer this valuable benefit to our employees, and encourage everyone to participate. Once you have established an account with a Vendor, please complete the Salary Reduction Agreement form indicating how much you would like to contribute. After that, please return it to the address or fax # provided on the bottom of the form and they will take care of the rest.