Related Resources

3121 Withdrawal Restrictions

You may only make withdrawals under certain circumstances outside of retirement under tax law.

3121 FAQs

Answers to common questions regarding social security alternative programs

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Your alternative to
Social Security

3121 Social Security Alternative

A 3121 plan is a Social Security Alternative available to employees of state and local governmental agencies, including public school employees. In 1990, the Omnibus Budget Reconciliation Act was passed. Government entities who exercised their Social Security Section 218 exclusion allowance were provided the option of giving their part-time, temporary and seasonal employees a meaningful, defined contribution retirement plan as an alternative to Social Security.

Benefits Include:

  • After tax 6.2% Social Security contributions are replaced with 7.5% pre-tax employee contributions (7.5% pre-tax is approximately equivalent to 6.2% after-tax)
  • Earnings accumulate more rapidly since taxes are deferred
  • Earn market rate of return
  • 100% vested with no penalty for withdrawal upon termination of employment


Interested in a 3121 Social Security Alternative?

Ask about benefits through First Financial where you work.