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What is Mandatory Alternative Retirement and FICA Med?

April 26, 2017alternative FICA mandatory med retirement

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What is Mandatory Alternative Retirement and FICA Med?

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All non-benefited employees are automatically enrolled in the OBRA Deferred Compensation Plan. The plan is an alternative to Social Security coverage as permitted by the federal Omnibus Budget Reconciliation Act of 1990. (OBRA). The mandatory contribution is 7.5% of gross earnings each pay period. All non-benefited employees must also pay the 1.45% Medicare portion of FICA.