Special Pay & FICA Alternative Plans
Retirement planning often benefits from custom strategies and a specialized approach for both employers and employees. You can count on our in-depth experience with Special Pay Plans and FICA Alternative Plans for the public sector. We offer simple but effective benefits funding and administration solutions that help both employers and employees save.
Special Pay Plans
This plan allows employees to place accumulated sick, vacation and other leave or incentive pay into a plan that permanently avoids Social Security and Medicare taxes for both employee and employer. Employees also defer income taxes until funds are withdrawn, resulting in significant savings when facing retirement.
FICA Alternative Plans
Substituting as a private investment plan for part-time, temporary and seasonal employees’ Social Security, contributions are deducted from an employee’s wages with a deferral on income taxes. Employees are provided alternative saving options and the freedom to invest these funds as they choose, while employers save on Social Security taxes.
Our U.S. BENCOR/MidAmerica division is a national leader in the design, implementation, and administration of specialized retirement plans and utilizes a robust recordkeeping system and IRS-approved plan documents that are crafted specifically for these plans. Visit U.S. BENCOR/MidAmerica, for more information about these specialty retirement plans and more.