FICA Alternative

TO: Cabinet Officers
Deans, Faculty Senate

FR: Sam Connally

RE: FICA Alternative Plan

Dear Colleagues:

The UCCSN will implement the State's FICA Alternative Plan effective July 1, 2005.

The FICA Alternative Plan affects only temporary classified employees and temporary faculty or professional staff on letters of appointment (including LOA's and LOB's). It does not apply to full-time or part-time employees on A or B contracts or to continuing classified staff -- all of whom are already exempt from Social Security.

All temporary employees hired on or after July 1 will be required to participate in the FICA Alternative Plan. Under the provisions of the Plan, the employee will be required to contribute 7.5% of gross earnings into a deferred compensation account administered by the State of Nevada. The University will not contribute. Employee contributions vest immediately and the employee retains ownership of the funds upon separation from the University.

All current temporary employees -- to include any part-time faculty who have worked from July 1, 2004 through June 30, 2005, inclusive, will have the OPTION of participating in the new FICA Alternative Plan or continuing to participate in traditional Social Security. Benefits staff in Human Resources will send information packets to each affected individual, including a description of the FICA Alternative and an election form as new employment documents are received for FY 2005-06.

In response to the recommendations from Academic Administrators on a number of campuses, the Human Resources Advisory Committee was successful in advocating a definition of "continuing employee" that will preserve the ability of temporary employees to participate in traditional Social Security in future years so long as the employee is employed the equivalent of one regular academic term during the preceding 12 months. This will enable long-term part-time faculty to continue their participation in Social Security, even if they elect to take a semester off.

A copy of Vice Chancellor Neel's memorandum to the Chancellor, Presidents, and Board of Regents is attached for your information. Feel free to call me if you have further questions.

Best regards,

Sam Connally
Associate Vice President
Human Resources & Diversity Initiatives
University of Nevada, Las Vegas
sam.connally@ccmail.nevada.edu
Ph: 702-895-1043
Fx: 702-895-1545

Click here to read the memo sent by Vice Chancellor Buster Neel [.doc]