Apple/SS/Medicare

APPLE

Butte implemented APPLE (the Accumulation Plan for Part-time and Limited Employees) for certain part-time, seasonal, or temporary employees not covered by a collective bargaining unit and not contributing to the California Public Employees Retirement System (PERS). APPLE is a Defined Contribution Plan designed to provide enhanced retirement benefits. Unlike the Social Security program (FICA) in which contributions are made on an after-tax basis, APPLE contributions are on a pre-tax basis which means more dollars are put to work toward the contributor's retirement and the taxation is deferred until a later date. Each participant contributes 6.2% of monthly wages. The District contributes 1.3% on the employee's behalf.

You can view Apple Plan Information Flyer, Frequently Asked Questions, obtain Participant Website Access, by clicking on the related item.

Apple participants do not contribute to Social Security (FICA). Participants who qualify for Social Security benefits from other employment, or by being married to an individual who was employed in jobs covered by Social Security, may receive a reduced benefit as a result of the Windfall Elimination Provision (WEP). An APPLE participant who has paid FICA on 30 years of substantial earnings is not affected by WEP.

Social Security/Medicare

Regular District classified employees and classified MSC pay Social Security (FICA) taxes. Based on affiliation with other retirement programs, a portion of the district's part-time, seasonal and temporary personnel also participate in the program. Associate faculty who are CalSTRS DB or CB non-members may elect to participate in the program. The tax rate is 6.2% for both the employee and the district. The 2018 maximum earnings limit for FICA taxes is $128,400.

All employees hired after April 1986 pay Medicare taxes. Prior to 1986, Butte's academic staff did not contribute to Medicare. A special election was held that allowed members of this group the opportunity to elect into the program. The Medicare tax rate is 1.45% for both the employee and the district. There is no earnings limit for the Medicare tax.

Forty (40) credits or approximately 10 years of work are needed to qualify for Social Security retirement benefits. For 2008, one credit is earned for every $1,050 of earnings up to the maximum of four credits per year. Social Security pays benefits when an individual retires, becomes disabled, or dies. The benefit amount for academic employees and academic MSC who qualify for Social Security benefits will be reduced based on earnings not covered by this program as a result of the Windfall Elimination Provision (WEP).

Medicare eligibility for Part A (Hospital Insurance), Part B (Medicare Insurance) and Part D (Prescription Drug Plan) is on the first day of the month in which an individual turns 65.

Go to www.ssa.gov for additional information on these programs.