HomeMy WebLinkAboutMemo of The City of Green Bay - FICA Alternative PlanTi,I.to.n.V5*
Peggy Barden
HR Generalist
Phone: (920) 448-3013
Fax: (920) 448-3128
City of Green Bay
Human Resources
City Hall, Room 500
100 North Jefferson Street
Green Bay, WI 54301-5026
To:
All Temporary and Seasonal Employees
Subject: FICA ALTERNATIVE RETIREMENT PROGRAM
The City of Green Bay utilizes a FICA Alternative Retirement Program for all seasonal and temporary
employees. Rather than reducing your wages on an after-tax basis by the required 6.2% FICA tax on each
pay check, the City of Green Bay contributes 7.5% of your salary on a pre-tax basis to a FICA Alternative
investment account in your name. Your take home pay does not change in any noticeable way and you'll
benefit from tax -deferred market rates of returns on your pre-tax investment.
What does change is that you gain important
control and flexibility. Unlike Social Security,
with the FICA Alternative program your
contributions and interest earnings are 100%
vested in their own. pre-tax account and are
available to you:
• Upon termination of employment;
• In the event of death or disability; or
• At normal retirement age.
Social Security
FICA Alternative
Gross monthly wage
$1,000.00
$1,000.00
Less 7.5% pre-tax contribution
-0-
75.00
Taxable income
1,000.00
925.00
Less 15% Fed income fax
150.00
138.75
Less 5% State income tax
50.00
46.25
Less 6.2% FICA/Social Security
62.00
-0-
Less 1.45% Medicare
14.50
14.50
Net Paycheck
$723.50
$725,50
This is not a voluntary program. Ail temporary and seasonal employees must submit an enrollment
form. Complete the "Participant Enrollment Form" and "Statement Concerning Your Employment in
a Job Not Covered by Social Security" and return both forms to the City of Green Bay Human
Resources office. Park, Recreation & Forestry employees should submit both forms to PRF
department with other new hire paperwork. You must indicate your beneficiary designation on the
enrollment form.
Once per calendar year you will receive a statement indicating all deposits and interest earned from Pelion
Benefits, Inc. When you terminate or separate from employment, your account balance will be available for
distribution. You may select a direct payment or a direct rollover to an IRA account or other qualified plan.
Direct payments will be subject to mandatory Federal income tax withholding at a rate of 20% as well as
State withholding where required. If you elect a direct rollover to an IRA or other qualified account,
mandatory withholding is not required. There is a processing fee of the lesser of $12 or interest earned on
all distribution payments.
Upon termination of employment from the City of Green Bay, you may request a Distribution Election Form'
from Pelion Benefits, Inc. at 1-888-532-7526, or you can obtain the form on-line from Precision Retirement •
Group's website at www.precisionbenefit.com/forms.htm. Submit your completed Distribution Election Form
directly to Pelion Benefits by mail, or fax to 919-942-2804.
If you have specific questions regarding your FICA Alternative account or about distribution of funds after ..
your employment ends, contact:
Precision Retirement Group
114 N. Bridge Street, Lower
Chippewa Falls, WI 54729
Phone 1-800-238-9101
Fax: 715-726-2029
Pelion Benefits, Inc.
OR PO Box 110355
Research Triangle Park, NC 27709
Phone: 1-888-532-7526
Fax: 919-942-2804
If you have general questions, call Peggy Barden in the City's Human Resources office at 448-3013.
FICA Alternative Memo/J-23-11