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IRS to Hold Session About FICA Replacement Plans
The 60-minute presentation on June 27 will cover:
- Social Security Coverage laws,
- Qualified Employer’s Retirement systems,
- Defined Benefit and Defined Contribution Plan,
- Revenue Procedure 91-40, and
- FICA replacement plans.
Effective 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.