Tag: pensions
Many who are familiar with state and local government finances are concerned that rising pension contributions could be crowding out important government services. And, some academic literature does find that higher pension contributions are associated with reduced employment in local governments and school districts. The issue is particularly acute for school districts, which must maintain…
Abstract Federal law allows certain state and local government employees to be excluded from Social Security if they are covered by an employer pension of sufficient generosity. As a result, approximately one-quarter of state and local workers are not covered by Social Security on their current job. Before COVID-19, these “FICA replacement plans” all satisfied…
