BENCOR/FICA Alternative Plan
401(a) FICA Alternative Plan
Eligible temporary, or OPS, employees who are not exempt from Social Security taxes participate in the FICA Alternative Plan through Bencor. Employees are automatically enrolled and un-enrolled based on their salary plan status. Participants contribute 7.5% of their wages into a 401(a) investment account instead of paying social security payroll taxes. The account is portable upon separation from the University or entering a position covered by the State of Florida Retirement program.
Related Forms/Documents:
Frequently Asked Questions
Starting on January 6, 2006, Florida State University implemented the BENCOR 401(a) FICA Alternative Plan, a qualified retirement plan for part-time, seasonal, or temporary employees not covered by the Florida Retirement System. In lieu of paying 6.2% of your wages for Social Security taxes, you will contribute 7.5% of your pre-tax wages into an investment account in your name.
Participation in the FICA Alternative Plan is mandatory for all eligible OPS employees who are not otherwise exempt from paying Social Security/OASDI (Old-Age, Survivors and Disability Insurance) tax from their FSU wages.
- Current FSU student employees who are enrolled at least half-time in an academic term and are not working at a combined full-time equivalency (FTE) of 0.75 or greater;
- Certain nonresident aliens who are exempt from FICA; and
- Retirees of the Florida Retirement System (FRS) who are rehired into an OPS classification may be exempt from OASDI but will continue to pay the Medicare portion of FICA.
Note: In most cases, exemptions are automatically applied by the University based on the employee’s status in the system. However, if an employee believes they qualify for an exemption based on their nonresident alien status, they must contact the Payroll Services Tax team at CTL-Payroll-Tax@admin.fsu.edu, to complete the required paperwork.
Upon terminating your employment or entering a position covered by the State of Florida Retirement program, withdrawals from your BENCOR account may be made in a lump-sum cash payment or as a transfer (rollover) to an IRA, Roth IRA, or another qualified retirement account. To request a withdrawal or rollover/transfer of account funds, contact BENCOR at 1-866-296-9712 or log into your BENCOR account online to submit your request.
Note: Prior to approving a distribution request, our office confirms the participant has not received any earnings for at least two (2) pay periods, to ensure that their department has had adequate time to make a correction if needed. As such, the typical time frame for approval is approximately 4-6 weeks following the participant’s date of termination. Account Access Instructions
