Did you know that 40% of public school teachers and other education employees aren’t covered by Social Security? That is bad for the affected workers, who miss out on potential benefits. But it also complicates the program for the rest of us.
But instead of solving this problem, the House of Representatives may soon consider a bill that would repeal two provisions designed to preserve fairness in the Social Security formula. If passed, the measure would provide a financial windfall to retirees like former teachers and school superintendents who already have a healthy pension to fall back on. And it would cost taxpayers $196 billion over the next 10 years.
The rules are complicated, so an example might help. Imagine a hypothetical California teacher. Like most educators in states like Ohio, Texas and Massachusetts, and over two-thirds of police officers and firefighters, California teachers don’t participate in Social Security. Our hypothetical teacher doesn’t pay the 6.2% Social Security payroll tax on income, and her school district doesn’t pay the employer portion, either.
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