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Office of Financial Services > Accounting Operations > Frequently Asked Questions > Why must I participate in Bencor?  

Frequently Asked Questions: Why must I participate in Bencor?

Category

Deductions 

Question

Why must I participate in Bencor? 

Answer

Participation in “BENCOR” is a Board adopted mandatory qualified retirement plan for an employee who is retiring, terminating or entering DROP and has accumulated at least $500 in "Special Pay" (terminal pay, sick leave pay, annual leave, etc.). Features of the Plan include:

·     100% vested in all contributions to the Plan, immediately.

·     Income taxes on contributions and the earnings thereon are deferred until withdrawal.

·     Social Security and Medicare taxes are permanently saved on contributions to the Plan.

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Created at 5/20/2010 3:14 PM  by Moses, Linda@Accounting Services 
Last modified at 2/11/2011 2:30 PM  by Moses, Linda@Accounting Services