3121 FICA Alternative Plan

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Distributions & Eligibility

Online Account Access Distributions & Eligibility Designating a Beneficiary FICA Alternative Plan Benefits MidAmerica News Feedback Survey Plan FAQs

Online Account Access

Active Participant

*Please note if you have multiple plans with MidAmerica, you will first need to select the plan for which you wish to make a designation. Beneficiary designations do not automatically apply to all of the benefits you have with MidAmerica—you should ensure you designate a beneficiary for each plan that allows it.

Frequently Asked Questions

General

What is a 3121 FICA Alternative Plan & how does it work for me?

An alternative to Social Security.

A 3121 FICA Alternative plan is a unique retirement plan only offered to public sector employees in part-time, seasonal, and temporary positions, or any position not covered by the state's retirement system, as an alternative to Social Security. FICA Alternative Plans are typically established as a specialized type of 457(b) or 401(a) plan.

Funded with your pre-tax dollars.

A 7.5% pre-tax contribution is automatically deducted from your paycheck to fund the account.

Virtually no change to your take-home pay.

If contributing to Social Security, your payroll deduction would be 6.2% after tax. With a FICA Alternative Plan, that 6.2% deduction is replaced with a 7.5% contribution into your retirement account. What’s the difference? Your FICA Alternative contribution is pre-tax, leaving you with roughly the same amount of take-home dollars as contributing to Social Security. The chart below illustrates how 7.5% equals 6.2%.

*The $75 contribution to the FICA Alternative Plan is immediately vested while the $62 deduction for Social Security is subject to Social Security credit calculations.

Funds are invested for potential growth!

When you contribute to Social Security, your payroll deductions do not accrue interest on your behalf. With the FICA Alternative plan, your contributions are invested, which means the potential for increased account value due to earnings over time. Your funds are invested with our long-time investment partner, American United Life Insurance Company^®, a OneAmerica^® company (AUL). To view more details on your plan investments, review your Plan Highlights. Don't have a copy? Call 800-430-7999 or email [email protected] to request a copy.

No fees for active participants.

There are no plan fees while you’re an active participant. A nominal monthly fee may be applied once you become inactive. Inactive participants are those who have not contributed to the plan for a period of 12 months and are distribution eligible.

FAST FACTS

First Time Account Access

Log into your account at www.myMidAmerica.com. From the homepage, select Access Account.
Enter your Social Security number (SSN) as your Username and the last four digits of your SSN as your Password, then select Participant Login.
You will then be prompted to update your login credentials.

Please note this is the only time you will be required to enter your SSN to access your account.

Update Your Personal Information

Keeping your personal information up to date with MidAmerica is critical to ensuring you receive important communications. Once your employer processes your first contribution, be sure to log in and confirm that your information is correct.

Once logged into your account at www.myMidAmerica.com, select the small gear icon to access Settings (screenshot below).
Select Personal Info to update General information such as your address, phone number, and birth date. You can update your email addresses and security question as well.

Inactive participants are generally those who have not contributed to the plan for a period of 12 months and are eligible to request a distribution from their account. Please consult your Plan Highlights for a specific definition related to your particular plan.

Distribution Eligibility Checklist

You have retired or otherwise permanently separated service from the plan sponsor.
Your employment status changed from part-time to full-time, you have a balance less than $5,000, and you have had no contributions to your account for 2 years. (For 457(b) plans only). Please note that if your balance is more than $5,000, you must be retired and/or permanently separated from the plan sponsor or be at least 59 ½ years old.
You are at least 59 ½ years old.

What about in-service distributions?

If your plan permits in-service distributions, you may request a distribution while you are actively working once you have met the age requirements. Consult your Plan Highlights or contact us at (800) 430-7999 to confirm how your plan is designed.

IMPORTANT NOTE: Additional eligibility requirements may be in place for your plan. Please consult your Plan Highlights for more details. To obtain a copy of your Plan Highlights, call (800) 430-7999 or email [email protected].

Requesting a Distribution

Upon receipt of your completed Retirement Plan Transaction Form, we will review the form and contact your plan sponsor to confirm your eligibility to receive a distribution.
Once we receive authorization from your plan sponsor, your payment will be issued within 5–7 business days.

The Distribution Authorization Process

Upon reaching eligibility status, you may request funds from your account by completing a transaction request form.

To access the form, log into your account at www.myMidAmerica.com and select Forms from the Forms & Reports dropdown in the top blue header. Then select the Retirement Plan Transaction Form.

Complete the form and submit it via one of these 3 easy methods:

Click here to securely upload your completed form to our website (Fastest way!)
Fax to (863) 688-4200
Mail to: PO Box 149, Lakeland, FL 33802-0149

What is a FICA Alternative Plan?

A 3121 FICA Alternative plan provides retirement and payroll benefits to part-time, seasonal, and temporary employees as an alternative to Social Security. The employer and employee both save the after-tax Social Security contributions of 6.2%; instead, a 7.5% contribution is automatically deducted from the employee’s paycheck. Because this 7.5% deduction is pre-tax, the employee is left with roughly the same amount of take-home pay as contributing to Social Security. To learn more about how your FICA Alternative plan is designed, review your Plan Highlights. You can also request a copy of your Plan Highlights by calling (800) 430-7999 or emailing [email protected].

Who is required to participate in the plan?

If you are a part-time, temporary, or seasonal employee not participating in a state retirement plan, you are required to participate in the plan if your employer provides it.

How are contributions made into my account?

You will have a 7.5% contribution automatically deducted from your paycheck. Your employer may also contribute to your account, depending on your unique plan setup. Consult your Plan Highlights for information specific to your plan.

How are my funds invested?

Investments are provided by American United Life Insurance Company^®, a OneAmerica^® Company (AUL). To learn more about how your funds are invested and if you have diversification options, review your Plan Highlights. You can also request a copy of your Plan Highlights by calling (800) 430-7999 or emailing [email protected]. For more information on your investments and AUL, please visit www.oneamerica.com. Not sure if your funds are invested? Contact us at (800) 430-7999 or email us at [email protected].

Can I name a beneficiary?

Yes. You may designate a beneficiary online by logging into your account on our secure website, www.myMidAmerica.com. From the landing page, select the Settings icon, which is a small gear icon located in the upper right-hand corner of the screen.

Next, select Beneficiaries. From here, you are able to enter your beneficiary information.

Please note if you have multiple plans with MidAmerica, you will first need to select the plan for which you wish to make a designation. Beneficiary designations do not automatically apply to all of the benefits you have with MidAmerica—you should ensure you designate a beneficiary for each plan that allows it.

Are there any fees?

Yes. If you are considered an inactive participant, you may be charged a nominal administrative fee each month. Inactive participants are those who are no longer employed with the plan sponsor and who could, at any time, request a distribution of their account balance. Consult your Plan Highlights to review your fee amount.

How often will I receive account statements?

Account statements are issued either quarterly or annually, depending on your unique plan setup. Consult your Plan Highlights for information specific to your plan.

Does this plan affect my Social Security benefits?

Under the Windfall Elimination Provision, your Social Security retirement or disability benefit is figured using a modified formula when you are also entitled to a pension plan from a job where you did not pay Social Security tax. As a result, you will receive a lower Social Security benefit than if you were not entitled to a pension from this job. This amount is updated annually. This provision reduces, but does not totally eliminate, your Social Security benefit. For additional information, please refer to Social Security Publication, “Windfall Elimination Provision” located here: https://www.ssa.gov/planners/retire/wep.html.

How can I view my account balance and transaction history?

Account balances and transaction histories can be found on your Dashboard upon logging into your account online. To log in, visit www.myMidAmerica.com and select Access Account. If this is your first time logging in, your initial username is your Social Security number (SSN) and your initial password is the last four digits of your SSN.

Am I required to take a distribution?

Once you've met certain age requirements, you are mandated by the Internal Revenue Service (IRS) to receive Required Minimum Distributions (RMDs). The following RMD age requirements are based on legislative changes that went into effect on January 1, 2020:

If you were born on or before June 30, 1949, you must take your first RMD by April 1 of the year following (a) attainment of age 70 ½ or (b) retirement, whichever is later, and by December 31 each year thereafter.
If you were born after June 30, 1949, you must take your first RMD by April 1 of the year following (a) attainment of age 72 or (b) retirement, whichever is later, and by December 31 each year thereafter.

If you do not begin receiving your RMD, the IRS applies an excise penalty tax equal to 50% of your total RMD not distributed during the taxable year. As part of MidAmerica’s service to you, we will send you a communication noting the amount of your RMD beginning in the year you reach the age requirement.

How do I request a distribution?

You can request a distribution by completing a Retirement Plan Transaction Form, which can be obtained by logging into your account on our secure website, www.myMidAmerica.com. If it's your first time logging in, your initial username is your Social Security number, and your temporary password is the last four digits of your Social Security number. You can also obtain the form by calling or emailing our Participant Services department at (800) 430-7999 or [email protected].

Are there taxes on distributions?

Federal taxes of 20% are withheld from lump-sum distributions over $200. There is no penalty for withdrawal on 457(b) plans regardless of age and taxes are not withheld from rollover distributions. Applicable state taxes may also be withheld.

Designate Your Beneficiaries

After your employer submits a contribution on your behalf, you may log into your account to declare one or more beneficiaries.

Once logged into your account at www.myMidAmerica.com, select the small gear icon to access Settings (screenshot below).

Select Beneficiaries and simply follow the prompts on the screen to designate your beneficiaries.

An active participant is an individual who is still working for the employer that sponsors the FICA Alternative plan and is still making contributions to their account.

VS.

Inactive Participant

Our Mission: We strive to take care of those people who do so much to take care of our communities—like public school employees, law enforcement and firefighters, and municipal employees—by providing best-in-class administration for the benefit plans that allow them to live with security and to retire with peace of mind.

Our Vision: It’s our vision that MidAmerica will become the nation’s most trusted provider of public sector benefits funding and administration, helping five million employees in their personal health and wellness journey.

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