What is a PST Plan?
The PST Plan is an alternative to Social Security coverage as permitted by the federal Omnibus Budget Reconciliation Act of 1990 (“OBRA”). As a result of participating in the PST Plan, you are not subject to the Old Age, Survivors and Disability Income (also known as Social Security) portion of FICA tax on the compensation you defer under the Plan. You are subject to the Medicare portion of FICA. Taxes are due when money is distributed from the plan. The amounts accumulated on your behalf are distributed at retirement, or due to another qualifying event, such as severance from employment or death. For additional information regarding the County’s PST Plan, including employees who are required to participate, please see the Plan Overview Section.
