What is the 3121 FICA Alternative Plan?
The Omnibus Budget Reconciliation Act of 1990 (OBRA) Amended the Internal Revenue Code and the Social Security Act to include employees of state and local governments. The Act authorized the Secretary of the Treasury to adopt regulations and provide guidance to the Internal Revenue Service and Social Security Administration. The Act amended Internal Revenue Code Section 3121, under which Social Security participation became mandatory for all employers. However, the Internal Revenue Code Section 3121 says that part-time, temporary, and seasonal (PTS) employees are exempt from the Social Security tax if they are provided a “comparable retirement system”. In response, the 3121 Plan was created as an authorized alternative to Social Security to meet those requirements.

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To access the 3121 Plan Overview, please click on this link.

To access the 3121 Enrollment Form, please click on this link.

To access the 3121 FICA Alternative Distribution/Rollover Form, please click on this link.