Overview
This overview provides information on the two defined contribution retirement plans established by the San Francisco Bay Area Rapid Transit District (“BART”) for the benefit of its employees: the BART Deferred Compensation Plan and the BART Money Purchase Pension Plan (collectively, the “Plans”).
The Plans were created by BART in response to an October 1980 vote by BART employees to withdraw from the Social Security (F.I.C.A.) system. Effective January 1, 1981, BART discontinued the deduction of Social Security taxes from employees' paychecks. In lieu of Social Security, BART established the Deferred Compensation Plan, which is designed to be qualified under Section 457 of the Internal Revenue Code, and the Money Purchase Pension Plan, which is designed to be qualified under Section 401 (a) of the Internal Revenue Code..