You cannot contribute to both the Deferred Compensation Plan and FICA unless you contribute less than 7.5% to the Plan or are a member of a pension system.
If you are contributing 7.5% or more of your pay to either the 457 or 401(k) and you are not a member of a pension system, you will not pay Social Security (FICA) tax. Please be advised, however, the timing, as to when the FICA payroll tax deduction will cease, depends on when during your City service you began contributing 7.5% of your total annual pay to either the 457 plan or 401(k) plan.
Please note: You must contribute at least 7.5% to a single plan; FICA deductions will not cease if you contribute, for example, 4% to one plan and 3.5% to the other. In the 457 and 401(k) plan, the 7.5% deferral amount must be either before-tax or Roth (after-tax) but cannot be a combination of both. Only certain titles from NYC Health + Hospitals (H+H) are eligible for this provision. NYC H+H employees must contact NYC H+H payroll for eligibility information.
IMPORTANT : Employees should be aware that not paying FICA tax could result in an ineligibility or reduction in Social Security disability benefits. Employees should visit the Social Security Administration’s Web site at www.ssa.gov for more information on qualifying for Social Security benefits.
If you still have questions, or would like more information about the Plan, register to attend the DCP Basics Seminar or call the Plan's Client Service Department at 212.306.7760.