Re: STRS vs. Social Security
Yes, it is interesting. These retiring teachers got hired for one day of substitute teaching in a district that participates in the Social Security System. They paid the school district an average of $364 in "fees"---more than than were paid by the hiring district, paid their Social Security tax on the day's wages. Now their spouses may be eligible for Social Security spouse benefits when the teacher dies. And the districts hiring them as substitutes actually raised a total of $7,000,000 through the fees charged to the teachers.
It is not yet settled whether the spouses really will be able to get spouse's benefits. I guess a proclamation by the SS Administration will be the semi-final word. Maybe a court case would settle it. With some 19,000 teachers involved, I suspect that would be plenty to put together a class action suit. Wonder if they would win. Is it really a loophole, or have these hiring school districts misread the regulations? Certainly it is not in the spirit of the law.
I know some teachers who might love to get a one day job in these Texas school districts if the loophole truly exists and doesn't get closed.
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