PSRS Social Security issue is resolved for thousands

April 28, 2009

Ninety-seven percent of PSRS members will not be adversely impacted by the regulation requiring payment into social security says the Federal 218 Task Force report released by Senator Claire McCaskill’s office April 13, 2009. Missouri NEA's on-going communication with Congress about the the Social Security/PSRS issue has paid off. The Federal Task Force also released a process that school districts can follow to seek clarification on the remaining employees that might be impacted.

Michael Grochowski, the Regional Social Security Commissioner, chaired the Federal Task Force including representatives from the SSA, the IRS, the Missouri Office of Administration, DESE, and PSRS. The task force met with Missouri NEA and the educational associations on February 5, 2009 to answer questions and provide an update. On April 17, Mr. Grochowski reconvened the associations to review the K-12 findings in the Federal Task Force Report.

Mr. Grochowski began by confirming that July 1, 2010 will remain the new effective date of the change and none of the impacted PSRS members will be asked to pay into Social Security until that date. He indicated, the Task Force research is still a work in progress for Community College members.

A complete copy of the Federal Task Force Report and other information referred to in the report can be found in the Information Bank to the right. More information on the issue can be found on the State Social Security Administrator Web site at http://oa.mo.gov/acct/schooldistricts.htm.

Probably the recommendation from the Task Force impacting the most people is that a full-time “teacher” who has both a license to teach and is in a position that Missouri law requires to have a license to teach will continue to be excluded from Social Security coverage.

The Social Security Administration relied heavily on DESE Core Data codes in determining if a position requires certification. These codes are used by school districts to submit information for all employees based upon the duties of the employee. Check with your district regarding your DESE Core Data Code.

You can use the document found at http://oa.mo.gov/acct/pdffiles/PositionGuideDESEcodes.pdf and it’s cover page to decipher the code structure and find most of the answers to who will be excluded from paying Social Security. Below is a general explanation of how various codes will be impacted.

General Categories of Core Data Codes

10 – Central Office Administration
20 – Building Principals
30 - Supervisors
40 - Media Personnel
50 – Guidance Personnel/Placement Specialists
60 – Teachers
70 – Other Pupil Service Personnel
80 – Aides
90 – Ancillary Personnel

Codes 10 – 60: Core data codes from 10 through 60 are positions that clearly require a certificate or license to teach and these positions will not pay Social Security, if the individual is working full-time.

For the remaining codes (70 – 90): the local district will determine Social Security participation based on the guidelines in the Task Force Report. Individuals should check with their district. The State Social Security Administrator Web site has a form that school districts can complete to evaluate a position. Teachers cannot complete the form – it must be done by a school district.

Code 70: For specific assignments identified under position code 70 (Other Pupil Services Personnel), if the position requires a certificate according to DESE Codes and the teacher is working full-time in that assignment, the teacher would not pay Social Security taxes.

Codes 80 and 90: Individuals under position codes 80 (Aides) and 90 (Ancillary Personnel) are a mixed bag. Some positions in this group require certification according to DESE Codes and they will NOT pay Social Security if the individual is working full time. But several positions in this group do NOT require a license to teach (even though the individual may hold a certificate), and therefore, these individuals will pay Social Security taxes beginning July 1, 2010.

Extra Duty Pay: The Task Force further reported that if a school district employee occupies a position that is excluded from Social Security coverage for the majority of their workday, then any compensation from the same employer received by the employee for extra duties, will be excluded from Social Security coverage. Conversely, if the employee occupies a position covered by Social Security for the majority of their time, then any compensation received by the employee for extra duties with the same employer will be covered by Social Security.

Part-time Employees: Part-time employees are complex. School districts have been divided into four categories, depending on the date on which the school districts executed its Section 218 coverage modification. The status of a part-time teacher depends upon the category in which the district falls and the position the employee holds. Check with your school district.

Retired Teachers working 550 hours or less:
The Task Force concluded that retired teachers working under the 550 hour rule will be required to pay social security taxes beginning on July 1, 2010 and school districts will be required to match these contributions.

What Next? In the coming months, the Office of Administration will be working with school districts to make determinations on all employees. They hope to have all determinations made prior to January 1, 2010. Missouri NEA will continue to keep you informed while seeking solutions for members without answers on this complicated issue.

by DeeAnn Aull
MNEA director of programs and public relations