BENCOR Special Pay Plan 401(a)
A mandatory qualified retirement plan, such as BENCOR, is 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.