Sunday, July 11, 2010
Retirement Plan for OPS Employees
Dear Campus Community:
I am pleased to announce that the university is implementing a new Retirement Plan for OPS employees as an alternative to FICA (Social Security) contributions. For the first time, we will now have a personal retirement plan offering for all of our UWF employee classifications. The new plan will take effect for all OPS employees Sept. 1.
The new Retirement Plan for OPS employees will allow them to have direct control over their personal retirement contributions. At the same time, it will provide savings for the university, compared to the current FICA costs. This will make a substantial contribution to the ongoing financial health of the university and to our departments as these savings will accrue directly to the departments employing OPS staff.
Under the retirement plan, OPS employees will contribute 7.5 percent of their wages, on a pre-tax basis (thus with minimal change in net take-home pay) to a personal retirement account rather than paying the 6.2 percent FICA tax. Employees may control how their retirement funds are invested in a variety of no-load mutual funds, or simply accept the default investment in a fixed return account.
Details on the plan will be forthcoming in special communications from the Office of Human Resources and the Payroll Office and are available by visiting: http://uwf.edu/ohr/benefits/FICA_ALT/.
We hope OPS employees will appreciate this new retirement benefit and know that we value their service.