What is the FICA Alternative Plan?
Legislation passed as part of the Omnibus Budget Reconciliation Act of 1990 (OBRA 90), mandating that substitute, temporary and part-time employees are required to participate in either FICA (Social Security Tax) or an alternative plan set up within the guidelines established by the Internal Revenue Service. The deductions for the FICA Alternative Plan (OBRA) are taken out of your paycheck in lieu of deductions normally made to FICA. As a result of the legislation passed under House Bill 3459 in the 78th Texas Legislature, a 90-day waiting period is required for Teacher Retirement System of Texas (TRS) Pension Plan membership for eligible employees hired into a TRS-covered position on or after September 1, 2003. As permitted under Section 3121(b)(7)(F), DISD offers employees the opportunity to participate in the DISD 457(b) FICA Alternative Plan during the 90-day waiting period in lieu of Social Security. You may apply prior service with a TRS-reporting entity toward the 90-day waiting
