June 13, 2013 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) has
scheduled a phone forum about FICA Replacement Plans.
60-minute presentation on June 27 will cover:
Security Coverage laws,
Employer’s Retirement systems,
Benefit and Defined Contribution Plan,
Procedure 91-40, and
July 2, 1991, Congress made Social Security coverage mandatory for state and
local government employees who are neither covered by a Section 218 Agreement
nor qualifying participants in a public retirement system. Under this
provision, states can provide these mandatorily covered employees with
membership in a public retirement system as an alternative to mandatory social
security coverage. Employees may also be covered by both a public retirement
system and social security under a Section 218 Agreement.
A governmental retirement plan must meet
certain minimum benefit or contribution standards to qualify as a public
retirement system, and thereby serve as a “replacement” plan exempting the
participants from mandatory Social Security coverage. These standards are based
solely on meeting a minimum benefit level provided (defined benefit plan), or a
minimum amount contributed (defined contribution plan) to the participant. Registration for the
event is here.