Social Security Alternative Plan
As a part-time temporary employee at Seminole State College, you are a participant in the College's Social Security Alternative Plan (SSA). The SSA resulted from a federal law, Internal Revenue Code Section 3121 (b) (7) (F). This plan has many advantages. Some of the benefits to you are:
- You do not pay social security taxes while you are covered by this plan.
- You pay only the Medicare portion of social security taxes which save you 6.2% in payroll taxes. Because you are in an alternative plan, your time in SSA is not reported to the social security administration.
- The contributions to this plan are made with before-tax dollars. This deduction from your pay is 7.5% of your compensation, which is the maximum contribution allowed under the regulations.
- An investment account is established in your name into which your contributions will go, and from which distributions can be paid only to you. A competitive rate of interest is paid into your account each month.
- If you leave this plan for any reason before retirement, you can withdraw your account balance from this plan, or continue to save the funds for retirement.
- Any benefits that you earned under any other retirement plan (or Social Security) will not be reduced by participation in this plan.
- You will receive statements from TIAA-CREF showing the activity in your account, which will allow you to confirm the accuracy and benefits of this plan. You will be able to designate a beneficiary for the plan and select your investment funds.
- Participation in this plan may result in your contributions to your personal IRA account not being allowed by the IRS as a tax savings plan. You are encouraged to consult with your accountant regarding this.
- Please be advised that as an eligible part-time employee, participation in this program is mandatory.
- Information explaining the plan administered by TIAA-CREF. Please direct any questions about this plan to TIAA-CREF using their toll-free telephone number:
1 800 842-2776
- You should complete the beneficiary form they mail to you and return it to their address.
* Employees who are in student employment positions are ineligible for the Social Security Alternative Plan.