Skip to main content

As an alternative to Social Security, the FICA Alternative Plan provides an individual investment plan for part-time, temporary and seasonal employees. Contributions to the plan are deducted from each employee’s wages and are income tax-deferred and invested in accordance with each employee’s direction.

Benefits of a BENCOR FICA Alternative Plan:

Meet John. John is a part-time employee for his local school district. Because his school district has a BENCOR FICA Alternative Plan, he now has a contribution going into his retirement plan in his name with no impact to his take-home pay, a benefit he would not have had otherwise. Here is how the plan works:

Without BENCOR

John’s Gross Pay: $1,000
Retirement Savings Social Security Tax (6.2%) Medicare Tax (1.45%) Federal Income Tax (18%)
$0 ($62) ($14.50) ($180)
Take Home Pay = $743.50


John’s Gross Pay: $1,000
Retirement Savings Social Security Tax (6.2%) Medicare Tax (1.45%) Federal Income Tax (18%)
$75 N/A ($14.50) ($166.50)
Take Home Pay = $744 + Retirement Savings = $75
FICA Alternative Plan

FICA Alternative Plan Benefits for Eligible Employees:

  • 7.5% of employee wages are contributed on a pre-tax basis
  • A personal retirement account that you may not otherwise have
  • Investments may be self-directed to meet individual objectives
  • Greater control over retirement funds upon termination, death, disability or normal retirement age
  • Increased account value due to deferred income tax payments on contributions and plan earnings
Find Your Advisor