The AGC Public Works Retirement Program is a tax-qualified retirement program designed for AGC members.

Prevailing wage laws require that you pay your employees a pre-determined hourly rate and a fringe benefit rate. If the fringe rate is paid in cash to the employee, it means higher payroll taxes for you. But the law doesn’t require you to pay your employees the fringe rate in cash.

With this unique tax qualified program offered through Lincoln Retirement Financial Services, you may compensate your employees through fringe benefit contributions in a retirement plan, combined with an hourly wage rate. You pay fewer taxes and your employees watch a nest egg grow for retirement.

Best of all, your AGC membership makes you and your employees eligible to participate in this retirement program at a special member rate.

How does the AGC Public Works Retirement Program save you money?

It used to be that many companies chose not to offer a tax qualified retirement program due to the high cost of administration, but now you can’t afford not to! Did you know that every dollar you pay in hourly wages is taxed to pay for:

• FICA/FUTA contribution
• Worker’s compensation premiums
• Medicare contributions
• Public liability premiums
• State unemployment taxes

A less expensive way to pay wages is to direct fringe contributions to AGC’s retirement program. These dollars satisfy “prevailing wage” laws and save you employment taxes.

And the benefits don’t stop with the taxes you don’t have to pay-- your company’s profitability will increase because you will retain better workers, reduce your payroll, and the lower costs will make you more competitive with federal and publicly-funded construction bids. 

All contributions under this program are tax deductible for you and are not currently taxable for your employees. The contributions grow tax-deferred until your employees retire or withdraw their money.