Missouri NEA fights negative Social Security
change for select PSRS members
Missouri NEA is participating in a campaign with Governor-Elect
Nixon, President-Elect Obama, Missouri Senators and the Missouri
Congressional Delegation asking them to urge the Office of
Administration/Social Security Administration (OA/SSA) and
the IRS to reverse the decision to begin forcing a select
group of certified PSRS members to participate with a reduced
benefit from PSRS in exchange for full contribution to Social
Security beginning July of 2009.
In a memo dated October 22, the Social Security Administration
(Missouri State Administrator) notified PSRS and school districts
of a significant change that could have a detrimental effect
on the retirement of thousands of Missouri’s public
school employees. This mid career change in pension allocation
could have a significant impact on the take home pay and retirement
income for the members caught in this policy change.
According to PSRS, the change being pushed by the Internal
Revenue Service and SSA could require as many as 1563 office
administration employees, 1948 instructional aides, all nurses
that are not RN’s, 280 transportation employees, 10
food service employees, 52 maintenance employees, and 6280
“other” specialized positions to pay two-thirds
of the normal PSRS contribution rate, therefore receiving
only a two-thirds PSRS benefit at retirement, while contributing
fully to social security for the remainder of their career.
The total contribution to Social Security and PSRS would exceed
the full PSRS contribution amount and the Social Security
benefits provided are, by almost any measure, inferior to
those of PSRS. In addition, it is unclear what the GPO/WEP
impact will be for those with a significant portion of their
career covered exclusively by PSRS.
Missouri NEA will continue to actively participate in the
effort to ask OA/SSA and the IRS to review their change in
position and continue to allow all PSRS members to be exempt
from Social Security coverage. More information will be posted
as it becomes available.
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