Texas school districts rip off Social Security fund
The hiring of one-day employees by seven Texas school districts maycost the Social Security Administration $110 million annually inspousal benefits, according to an audit by the agency’s inspectorgeneral. The inspector general’s report estimated that 19,212 people could receive $2.2 billion in spousal benefits over their lifetimes. The seven school districts — Lindale, Kilgore, West, Coleman,Hudson, Premont, and Sweeny — raised more than $7 million by chargingfees to the one-day workers. The audit dealt with workers who retired before July 1, 2004, when the law was changed. Before the loophole was closed, retiring teachers and administratorscould work one day at another school district that participated inSocial Security to obtain spousal benefits. Most Texas school districts do not participate in Social Security. The inspector general also urged the agency to review eight otherunnamed Texas school districts, which weren’t audited but hired 3,285one-day workers. Now, the law requires state and local government employees to becovered by Social Security for their last five years of employment toreceive the so-called general offset exemption.
Social Security benefits for a spouse or surviving spouse aregenerally reduced for individuals who receive a monthly pension from astate or local government agency.
Read more in the Dallas Star-Telegram.
Even better–read the OIG’s report. Some teachers paid the school districts $500-$700 to participate in the one-day work program–generating social security benefits down the road of thousands of dollars each year. And guess whose watch this was occurring under?