Title page
Contents
Summary 2
Introduction 6
Background on Social Security 6
Nearly Universal System 7
Major Categories of Work Not Covered 7
Social Goals of the Program 8
State and Local Government Employees 9
State and Local Coverage Under Current Law 10
Alternative Public Retirement Systems 10
Section 218 Agreements 11
Legislative History Highlights 12
Social Security Coverage by State 16
Mandatory Coverage Proposals 19
Issues Surrounding Mandatory Coverage 19
Projected Effect on the Social Security Trust Funds 20
Projected Effect on Federal Revenues 20
Comparability of Noncovered Pensions and Social Security 21
Windfall Elimination Provision and Government Pension Offset 22
Windfall Elimination Provision (WEP) 22
Government Pension Offset (GPO) 23
Issues Related to the WEP and the GPO 23
Special Considerations for Certain Occupational Groups 24
FERS Accommodations for Certain Occupational Groups 25
Protections for Workers and Family Members 26
Disability Insurance Protection 26
Portability 26
Benefits for Dependents and Survivors 27
Cost-of-Living Adjustments (COLAs) 27
Progressive Benefit Formula 28
Net Effect on Total Benefits 28
Effect on State and Local Plans 28
"Closed System" Option 29
Administrative and Cost Issues 30
Funding Status of State and Local Plans 31
Overall Impact on State and Local Plans 32
Conclusion 33
Additional Resources 33
Author Information 34
Acknowledgments 34
Disclaimer 34
Table 1. Social Security Coverage of State and Local Government Employees, by State, in 2021 17
Figure 1. Share of State and Local Government Employees Not Covered by Social Security, 2021 3
Figure 2. Share of State and Local Government Employees Not Covered by Social Security, 2021 16