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Student DCP-SAFE Harbor and Medicare Exemption

Employees who are not members of the UC Retirement Plan become "safe harbor" participants in the Defined Contribution Plan (DCP). University policy requires that all eligible non-career employees hired or rehired on, or after, October 19, 1992, contribute on a pre-tax basis, 7.5% of their gross wages to the DCP. These employees are also required to contribute 1.45% of their earnings to Medicare.

Qualifying for Exemption

A student may qualify for a FICA exemption if the student is working less than 80% and enrolled in a minimum of 6 units during the Academic Semester. During the Summer Session, the exemption will require registration and enrollment in 6 units by undergraduate students and 2 units by graduate students.

Students who do not meet the FICA exemption eligibility requirements will be required to contribute 7.5% of their earnings to the DCP and 1.45% to Medicare. Please reference the UCnet website for additional policy rules and exceptions.

Requesting a Refund

If you are a student and believe you qualify for a student exemption (outlined above), yet have had money withheld, please review your payroll earning statements to ensure that you do not have DCP-Safe Harbor and Medicare deductions withheld. In the event that you qualify and had DCP-Safe Harbor and Medicare deductions withheld, you can contact the campus payroll office and one of their representatives will respond to your email questions.

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