All university employees are required to participate in a mandatory retirement plan in lieu of Social Security. Part-time instructors, part-time letter of appointment, seasonal, temporary, and casual employees do not participate in the university’s mandatory retirement but are required to participate in the FICA alternative plan.
Under the plan, 7.5% will be withheld from your total salary on a pretax basis and invested in a guaranteed interest-bearing account under your name. No additional contributions are permitted. The Nevada Deferred Compensation (NDC) Program administers the FICA alternative retirement program. VOYA is the sole record keeper for this plan.
Withdrawal
You will be eligible to withdraw these monies when you separate from service or are off payroll for at least one month. Withdrawals are subject to taxes.
Social Security
State of Nevada employees, including University employees, do not participate in Social Security. Instead, State of Nevada employees participate in mandatory retirement plans in lieu of Social Security. As a result, employees who qualify to receive Social Security benefits and also receive retirement income from the university may see a reduction in their Social Security benefits. This is called the windfall elimination provision.
For more information about the windfall elimination provision, visit the U.S. Social Security Administration website.