State and Local Government Employees Without Social Security …

However, approximately 5 million state and local government employees are not covered by Social Security in their current job. 1 Federal law allows state and local governments to exclude these workers from Social Security coverage if they are provided with a retirement plan that …

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Here's What To Know About House Bill To Expand Social Security

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For instance, under the GPO, an individual with a $900 spousal benefit from Social Security, who also has a $1,000 non-covered pension, would see their Social Security benefit reduced by …

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2 days ago · The total amount of discretionary spending in the federal budget is about $1.7 trillion, and Trump has pledged not to cut Social Security and Medicare, two of the government’s …

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FAQs about State and Local Government Employees Without Social Security … Coupon?

Does social security cover state and local government employees?

The original Social Security Act (1935; P.L. 74-271) did not extend Social Security coverage to state and local government employees. State and local government employees were excluded to avoid the constitutional question of whether the federal government had the authority to impose payroll taxes on state and local governments and their employees. ...

How many state and local government employees have Social Security?

Most state and local government employees participate in Social Security. In 2018, there were 23.2 million state and local government employees, and 16.6 million (72%) had Social Security coverage. The other 6.6 million (28%) did not have Social Security coverage through their government employment. ...

Can a state or local government employer exclude employees from Social Security?

Today, state and local government employers may continue to exclude some employees from Social Security coverage, but only if these employees are enrolled in a retirement plan that meets federal regulations requiring sufficiently generous benefits. ...

Which states do not have Social Security?

The other 6.6 million (28%) did not have Social Security coverage through their government employment. Eight states (California, Texas, Ohio, Massachusetts, Illinois, Colorado, Louisiana, and Georgia) accounted for almost three-fourths (73%) of noncovered state and local government employees. ...

Why did the Social Security Act of 1935 exclude state and local government employees?

The Social Security Act of 1935 excluded state and local government employees from Social Security coverage because of constitutional ambiguity over the federal government's authority to impose payroll taxes on public-sector employers and because these employees were already covered by DB pensions (Nuschler 2021). ...

Should Social Security coverage be mandatory for state and local government employees?

A Congressional Budget Office (CBO) report on options for reducing federal budget deficits includes the option of making Social Security coverage mandatory for state and local government employees hired after December 31, 2020. ...