30Rock Posted December 22, 2010 Share Posted December 22, 2010 We have a governmental 401 (a) plan with a 7.5% mandatory FICA replacement contribution, designed to be a 414() pick-up. Since the employee portion of the social security tax rate is being reduced by 2%, the employer wants to know if the mandatory pick up amount should also be reduced under the plan? Any thoughts?? Link to comment Share on other sites More sharing options...
Bill Presson Posted December 22, 2010 Share Posted December 22, 2010 We have a governmental 401 (a) plan with a 7.5% mandatory FICA replacement contribution, designed to be a 414() pick-up. Since the employee portion of the social security tax rate is being reduced by 2%, the employer wants to know if the mandatory pick up amount should also be reduced under the plan?Any thoughts?? I don't think so, because the SS benefits aren't going to change. And only the Govt can keep the benefits the same while lowering "contributions". William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
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