Social Security Information and Call to Action Meeting

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Social Security Information and Call to Action
Meeting

• November 13, 2008

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Disclaimer

• The information presented today is accurate to
  the best of our knowledge based upon information
  and interpretations received to date.
• We will keep you informed as more information
  becomes available.

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Acronyms You Need to Know

• SSA Social Security Administrator
• Tom Sadowski, Division of Accounting, Missouri
  Office of Administration is the State Social
  Security Administrator
• 218agreement_at_oa.mo.gov
• OA Office of Administration
• Vandee DeVore, Division of Accounting, Missouri
  Office of Administration

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History of Social Security

• 1935 Social Security Act enacted
• (Only private sector employees covered)
• Amended to cover public employees not covered by
  public retirement plan
• Amended to cover employees covered by public
  retirement plan
• 1956 PSRS Referendum (Members voted against SS
  coverage)

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Section 218 of Social Security Act

• Allows for agreements between the federal
  government and the states to provide Social
  Security coverage to certain public employees
• Each state decides, subject to federal law, which
  groups to cover under its 218 agreement with the
  federal government
• Missouri has 218 Agreement with SSA
• MO political subdivisions (school districts)
  enter into modifications to the 218 agreement
  to get SS coverage for its public employees
• Francis Howell RIII 218 Agreement Modification
  completed in 1951 (We became Francis Howell RIII
  on July 9, 1951.)

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Guidance from OA SSA

• 5/30/97 OA letter to school districts dont
  withhold SS if PSRS withheld
• 10/1/97 OA letter to school districts dont
  withhold SS if PSRS withheld
• 7/23/01 OA letter to school districts dont
  withhold SS if PSRS withheld
• 1/06 SSA letter to OA PSRS members excluded
  from SS

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Change in SSA/OA Opinion

• Districts that signed 218 mods before 8/13/84
  Francis Howell
• Only PSRS members in certain positions covered by
  PSRS exempt from SS
• Districts that signed 218 mods after 8/12/84
  Only 4 in Missouri
• All PSRS members exempt from SS

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Exempt under 218 Agreement

• Statutory definition of teacher before 8/13/84
• Teacher
• Teacher-Secretary
• Substitute Teacher
• Supervisor
• Principal
• Supervising Principal
• Superintendent or Assistant Superintendent
• Nurse (RN)
• Librarian
• Must also hold teaching certification

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Position Definitions

• Statutory Definition after 8/12/1984
• Any person who shall be employed by any public
  school on a full-time basis and who shall be duly
  certificated under the law governing the
  certification of teachers.
• Four Missouri Districts have this definition.

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Position Definitions

• OA Definition of Teacher
• A position in which the occupant is required by
  State law, on the date the District executed its
  218 agreement, to have a Missouri teaching
  certificate, or, if the position was created
  after the District executed its 218 agreement,
  on the date such new position was created.

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Position Definitions

• Teacher-Secretary
• A position whereby the individual works part-time
  in a teacher (as defined), and part-time as a
  secretary.

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Position Definitions

• Substitute Teacher
• A position whereby the occupant stands in for a
  teacher on a temporary basis. Individuals in this
  position are required to have a Missouri
  substitute certificate of license to teach.

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Position Definitions

• Supervisor
• A position whereby the occupant is certificated
  and is employed in the supervision of
  instruction, or in teaching and in the
  supervision of instruction.

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Position Definitions

• Principal, Assistant Principal, Superintendent,
  Assistant Superintendent
• Individuals in these positions are required by
  State law to have both teaching certificates and
  administrator certificates.

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Position Definitions

• Nurse
• A position requiring Missouri Registered Nurses
  (RN) certification.

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Position Definitions

• Librarian
• A position requiring Missouri librarian
  certification. The Missouri Department of
  Elementary and Secondary Education (DESE)
  currently refer to the librarian position as
  Library Media Specialist and to the
  certification as Library Media Specialist
  Certification.

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PSRS Argument Failed

• PSRS has argued to OA and SSA the pre-8/84
  definition was interpreted liberally to allow
  nearly all, if not all, certificated employees to
  be members of PSRS
• Change in statute in 8/84 was technical change to
  reflect liberal interpretation
• Argument was not successful

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Positions affected

• Any position that can be held without a teaching
  certificate or any position for which in 1951
  (when we became Francis Howell RIII and would
  have submitted a 218 agreement modification) the
  state did not require a teaching certificate.

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Positions Affected

• Counselors and ESCs
• Career Education (Business, IT, Marketing, FACS,
  Cadet Teaching)
• Speech-Language Pathologists/Audiologists
• Diagnostic Team
• School Psychologists
• Early Childhood
• Educational Technology Specialist
• ISAP/Study Hall

• Vision Orientation/Mobility
• Parent Educators
• Drivers Education
• Coaches
• Extra-Duty Positions
• Band Directors
• Paraprofessionals and Aides
• Substitute Teachers who are retired teachers
• Activities Directors

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Positions that may be affected

• Any position in Francis Howell that has been
  created since 1951.

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Positions that may be affected

• Literacy Specialists/Teacher Leader
• Reading Recovery Teachers/Teacher Leader
• ESOL Teachers
• Gifted Education Teachers
• Special Education Teachers
• Early Childhood Special Education Teachers
• Directors
• Coordinators
• Department Chairs
• Dean/Administrative Interns
• Content Leaders
• Kindergarten teachers
• Writing Lab teachers

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What is the effect?

• Section 169.070.9 and .10 state that PSRS members
  who contribute to social security with state and
  local tax funds pay 2/3 the normal contribution
  amount and receive 2/3 the benefit for those
  years that they contribute to social security.

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What is the effect?

• You will pay more
• You will pay 2/3 PSRS 9.0 PSRS will be at
  13.5
• You will pay SS (FICA) 6.2
• Total 15.2
• At retirement, you will receive less
• 100 PSRS for years prior to 2009
• 2/3 for years after 2009 exact process to be
  determined by PSRS
• You need 40 quarters or 10 years of substantial
  earnings to collect SS
• After 30 years, you reach 95 SS benefit
• Sliding scale for the years in between

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When?

• July 1, 2009
• Beginning next school year

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Responses

• Legal
• Debate 218 (Federal law) (has not been
  successful)
• Debate PSRS eligibility prior to 1984 (has not
  been successful)
• Possible federal lawsuit from PSRS members

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Responses

• Political
• Letter to Missouri Representatives and Senators
  in Congress and SSA
• Letter to OA, Governor, Representatives and
  Senators in the General Assembly, President
• Letter drafted by PSRS for associations
• Letter from Kit Bond to Commissioner of Social
  Security

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Call to Action

• E-mail Governor-elect Jay Nixon, President-elect
  Barack Obama, Commissioner of Social Security the
  Honorable Michael J. Astrue, your U.S.
  Representative
• Ask them to intervene to delay this decision and
  explore ways to resolve this issue
• Ask them to contact SSA and IRS to allow school
  districts to modify their 218 agreements to
  reflect current practice
• Make a point for them to consider

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Call to Action

• E-mail Senator Kit Bond Senator Claire
  McCaskill
• Thank them for taking action to address this
  issue
• Tell them how important this issue is to you
• Ask them to intervene to delay this decision and
  explore ways to resolve this issue
• Ask them to contact SSA and IRS to allow school
  districts to modify their 218 agreements to
  reflect current practice
• Make a point for them to consider

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Call to Action

• Email Missouri Social Security Administrator Tom
  Sadowski
• Ask him to delay this decision and explore ways
  to resolve this issue
• Ask him to allow school districts to modify their
  218 agreements to reflect current practice
• Make a point for him to consider

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How do I take action?

• Helpful Websites
• Find your Legislators by simply entering your
• full zip4 code at
• http//www.senate.mo.gov/llookup/leg_lookup.aspx
• CSD Legislative Updates and Advocacy
• http//www.csd.org

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Points to Consider

• No Child Left Behind requires that schools do
  whatever it takes to insure that all students
  achieve at high levels. This requires the
  concerted effort of all educators
• Teachers
• Counselors
• Administrators
• Curriculum specialists
• Special education teachers
• Speech-language pathologists

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Points to Consider

• All educators within four Missouri districts are
  exempt from Social Security and are full members
  of PSRS. These four districts submitted their
  218 Agreement modification after 1984, showing
  that the liberal definition of teacher is the
  current definition of teacher.

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Points to Consider

• In 1984, Social Security changed to require that
  all new employees make Medicare FICA
  contributions. Employees hired prior to 1984 do
  not contribute to Medicare FICA, showing
  precedence that changes in Social Security should
  not affect existing employees.

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Points to Consider

• Education and the world has changed since the
  1950s when Francis Howell submitted its 218
  Agreement Modification. Students today benefit
  from
• Reading recovery teachers
• Literacy coaches
• Special education teachers
• Certificated vocational education teachers
• Certificated family and consumer science teachers
• School counselors
• Certificated early childhood teachers

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Points to Consider

• While counselors and speech-language pathologists
  can work in other settings without teacher
  certification, they must have it to work in
  schools.

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Points to Consider

• If this pending change becomes a reality, school
  districts will not be able to fill positions that
  do not have full PSRS teacher retirement as a
  benefit. This will affect school districts
  ability to fulfill requirements for
• Positions teacherstudent ratios under MSIP
• Highly qualified teachers under NCLB
• Highly qualified teachers under IDEA

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Points to Consider

• If you are in a position that involves the
  improvement of instruction such as a Dean,
  Content Leader, Department Chair, Teacher Leader,
  Literacy Specialist, Coordinator, Director
• Point out that your position falls within the
  definition of a supervisor A position whereby
  the occupant is certificated and is employed in
  the supervision of instruction, or in teaching
  and in the supervision of instruction.

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Points to Consider

• If you are in a position that is one of the many
  positions in our District that have been created
  since 1951, be sure to point out that your
  position falls within the definition of teacher
  A position in which the occupant is required by
  State law, on the date the District executed its
  218 agreement, to have a Missouri teaching
  certificate, or, if the position was created
  after the District executed its 218 agreement,
  on the date such new position was created.
• On the date that your position was created a
  teacher certificate was required.