457 Part Time Plan Information

Eligibility

The 457 PTS Plan is designed specifically for employees who are part-time, temporary, or seasonal and therefore are not covered by your employer’s regular retirement program. Your employer adopted this plan as an alternative to putting all part-time, temporary and seasonal employees in the Social Security System.

Enrollment

Join the PTS Plan here.

Deferred Compensation

The PTS Plan is a deferred compensation plan established under Section 457 of the Internal Revenue Code. Contributions to the plan are made automatically each pay period to your employer sponsored retirement account. Federal and New York State income taxes are deferred until the assets are withdrawn from your account.

Contributions

A contribution of 7.5% of your gross salary is required in place of your Social Security contribution. Your Medicare contribution is unaffected. Participation is handled through payroll deduction, so your taxes are reduced each pay period. Contributions are invested in the MissionSquare PLUS Fund, a stable value fund designed to minimize the risk of loss while generating returns that are competitive with money market rates. Contributions to your PTS Plan are held in a trust established by your employer, and are available to you at separation of service, either as a rollover (transfer) to a qualified investment vehicle or as a taxable distribution.

The Role of OBRA and How it Relates to PTS Plans

The Omnibus Budget Reconciliation Act of 1990 (OBRA) expanded the definition of “employment” for Social Security coverage and FICA tax purposes to include service performed after July 1, 1991 by a state or local government employee, unless the employee is a member of the employer’s retirement system at the time service is rendered or is already covered under an agreement between the employer and the Secretary of Health and Human Services (referred to as Section 218 agreement). OBRA allows your employer to establish a special retirement plan in lieu of Social Security.