A pension plan for part-time, temporary and sesonal employees
The Omnibus Budget Reconciliation Act of 1990 (OBRA ‘90) required governmental agencies to cover their part-time, temporary, and seasonal (PTS) employees under a retirement plan. This legislation allows governmental organizations to satisfy this requirement by utilizing either Social Security, a Defined Contribution Plan, or a Defined Benefit Plan (such as the one offered by SISC). Effective July 1, 1991, employers had to select one of these three retirement options for their PTS employees. However, such options can be changed at any time.
Employers prefer the Plan because of the savings, simplicity, and minimal administrative requirements. SISC has designed an alternative retirement plan that is cost effective, flexible for school districts, and beneficial to both employees and employers. It is a qualified pension plan that provides a cost benefit to the district, while providing an extra source of income at retirement, or a lump sum cash distribution at termination, for part-time, temporary, and seasonal employees.
For all Participants hired prior to January 1, 2013, the plan is 100% funded by your employer. You do not make any contributions. These individuals are NOT subject to the mandatory employee contributions under the Public Employee’s Pension Reform Act (PEPRA).
All Participants hired on or after January 1, 2013 are subject to the mandatory employee contributions as required under PEPRA. Employees shall pay the mandatory employee contributions by a reduction in pay on an after-tax basis only. Information regarding the annual employee contribution rate is available from your employer.
NOTE: ANY Participant who terminates from the Plan and receives a distribution of his or her entire Accrued Benefit (or a refund of the mandatory employee contributions plus interest), and then resumes employment covered under the Plan, such employee shall be considered a NEW employee and will be subject to the mandatory employee contributions under PEPRA.
All contributions are held and invested by a Trustee appointed by the Plan Administrator.
Highlights of the Plan include:
Continuing assistance and materials for implementation of the Plan including:
A district may join the SISC Defined Benefit Plan at any time. Districts interested in taking advantage of SISC’s Plan need to submit the following: • Board Resolution • Adoption Agreement
Contact Lynn LaValley at (661) 636-4602 or email@example.com for more information.
Once a month, or after each payroll, districts submit a check for the appropriate contribution amount. Included with the check is a report showing employee names, Social Security numbers, wages, employer and employee contributions for each employee in the Plan. Since administration of this plan is so easy, we have had numerous calls from payroll staff asking, “Is this all I need to do?” Yes, it’s really that simple!
Monthly electronic files are required for benefit computation and the annual valuation. Many county offices are able to provide this service for their districts or have programming set-up so that districts can download the information. Districts from the following counties currently participate in the SISC Defined Benefit Plan: Kern, Inyo, Los Angeles, Madera, Mono, San Luis Obispo, Santa Barbara, Tulare, San Bernardino, and San Joaquin. Click here for a copy of the file format requirements for the electronic file .
Any questions about joining our Defined Benefit Plan, or from existing member districts, should be directed to Lynn LaValley at (661) 636-4602 or firstname.lastname@example.org.