FICA Alternative Plan
This plan is for substitute, part-time, seasonal and temporary employees.
What is FICA?
It stands for the Federal Insurance Contributions Act. The FICA Alternative Plan is a qualified retirement plan under Federal tax law that covers part-time, seasonal and temporary employees of the school district with the exception of Texas Retirement System (TRS) retirees.
The plan provides an alternative benefit to social security and exempts individuals from FICA (Social Security) payroll taxes. Employees can continue to pay Medicare taxes on their wages. Enrollment in the plan is automatic for every employee who works in a position covered by the plan.
How much is contributed?
Employees can contribute 7.5% of their wages on a pre-tax basis (for income tax purposes) instead of paying social security taxes that otherwise would be determined and paid by the employee on an after-tax basis. Plan contribution amount is reflected on the employee's paycheck stub. Contributions are credited to an individual account in the employee's name under the plan.
To review your account balance or request a distribution, access your account on the TCG website at www.tcgservices.com. For additional information, contact TCG Administrators at 800-943-9179.