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The Bencor National Government Employees Retirement Plans

Special Pay Plan

The Bencor Special Pay Plan is offered by Bencor, Inc. to help governmental units and their employees save up to 7.65% of Social Security Medicare taxes and to defer income taxes on eligible plan contributions.

Employees covered under this plan, who are separating employment, retiring or entering DROP and have accumulated at least $1,000 in "special pay" (sick leave pay, annual leave-vacation pay, incentive pay, etc.) will participate in this plan.

Accumulated "special pay" will be placed into the Bencor Special Pay Plan subject to contribution limits.

How the Special Pay Plan works (video)

Special Pay Plan Overview

Special Pay Plan Welcome Letter

What is Terminal Pay?

Part-time, seasonal, or temporary employees of a government employer may deposit money into a private retirement plan, instead of Social Security. Thus, these employees are not covered by Social Security. Under the 401(a) FICA Alternative Plan, employees contribute 7.5% of their compensation to an account in their name. Any benefits earned under any other retirement plan (as well as social security benefits) will not be reduced by participating in this plan. If an employee leaves a position covered by this plan for any reason before retirement, s/he can withdraw the balance of the account, or continue to save the funds for retirement.

All employees who are not covered by the District’s Special Pay Plan are automatically enrolled in this plan. There is no minimum age or service requirement.

How the FICA Alternative Plan works (video)

FICA Alternative Plan Overview

FICA Alternative Plan Welcome Letter

 

See Administrative Procedure: 3415 - Severance Pay Qualifications

Link to Procedure in BoardDocs