The City does not participate in the Federal Social Security program

[miri]

Why would a city not participate in the Federal Social Security program? Does this mean you have to pay Social Security x 2? And then do you have to pay FICA and Medicare x 2 as well?

 

[DurocShark]

What city is this?

And I was under the impression those things were required by employers...

 

[miri]

Originally posted by: DurocShark
What city is this?

And I was under the impression those things were required by employers...

Newport Beach

 

[DurocShark]

Originally posted by: miri

Originally posted by: DurocShark
What city is this?

And I was under the impression those things were required by employers...

Newport Beach

No kidding? What, the megabucks in taxes they get from that city isn't enough to pay SS?!?!?!

 

[OutHouse]

need more info. by fed law they have to take SSN taxes it is not an option.

 

[dquan97]

The city could opt out of contributing to the SS if they have an alternate plan in place...heard about this happening before.

 

[miri]

Originally posted by: Citrix
need more info. by fed law they have to take SSN taxes it is not an option.

http://agency.governmentjobs.com/newportbeach/default.cfm?action=agencyspecs

This City offers an employee benefits program including membership in the Public Employees? Retirement System (PERS) which the City pays the employee contribution; a Paid Flex Leave program based on the individual?s length of service; a group health/vision and dental cafeteria plan; City-paid group life insurance based on employee?s annual salary; eleven paid holidays the first year and twelve per year thereafter; Employee Assistance Program; and tuition reimbursement for job-related courses. In addition, an employee may opt to participate in the City?s deferred compensation plan. The City does not participate in the Federal Social Security program. Your benefits may be reduced if you work for an employer who does not withhold Social Security taxes from your salary.

 

[miri]

Originally posted by: dquan97
The city could opt out of contributing to the SS if they have an alternate plan in place...heard about this happening before.

Does this mean you have to pay 7.65% x 2, your share and the employers share in SS, FICA and Medicare still?

If so that would suck, 15.3% of your paycheck would goto pay SS, FICA and medicare

 

[drnickriviera]

There's you answer in the first sentence. They have their own retirement program. I believe Memphis does this as well.

 

[miri]

Originally posted by: drnickriviera
There's you answer in the first sentence. They have their own retirement program. I believe Memphis does this as well.

does this mean you stll have to pay SS, Medicare and FICA at 15.3% ?

 

[drnickriviera]

I believe state and local governments are still given the option to opt out of SS, so you would just pay into the cities plan.

http://www.ssa.gov/pubs/10051.html

Not sure what that means for new employees, but I think my first statement is correct

 

[miri]

Originally posted by: drnickriviera
I believe state and local governments are still given the option to opt out of SS, so you would just pay into the cities plan.

http://www.ssa.gov/pubs/10051.html

Not sure what that means for new employees, but I think my first statement is correct

so the employee would be exempt from paying SS as well?

 

[allisolm]

so the employee would be exempt from paying SS as well?

Yes, and the money earned would not count towards Social Security retirement (if there's any SS money left when you retire.)

 

[miri]

Originally posted by: allisolm
so the employee would be exempt from paying SS as well?

Yes, and the money earned would not count towards Social Security retirement (if there's any SS money left when you retire.)

thats awesome then, i already paid my 40 quarters towards SSI

 

[spidey07]

Originally posted by: miri

Originally posted by: drnickriviera
I believe state and local governments are still given the option to opt out of SS, so you would just pay into the cities plan.

http://www.ssa.gov/pubs/10051.html

Not sure what that means for new employees, but I think my first statement is correct

so the employee would be exempt from paying SS as well?

Yes. You will receive no SS benefits, therefore you don't pay into it.

-edit- for the time/income earned.

 

[FoBoT]

Originally posted by: miri
Why would a city not participate in the Federal Social Security program?

because SS is crap? SS is super duper crap? why would ANYONE want to be roped into SS when it sucks royal donkey balls?

http://www.libertysblog.com/2005/02/privatization-of-social-security-in.html
http://www.commondreams.org/headlines05/0228-02.htm

 

[FoBoT]

Originally posted by: Citrix
need more info. by fed law they have to take SSN taxes it is not an option.

nope, city govt. can choose to do their own system , see the link for Gavleston above

 

[huberm]

I think that is so discriminatory - that they let state and local gov agencies but not private employers.

I for one do not want to contribute to SS, but I am forced to. Yet our State Reps and Congressmen/women are not required to contribute.

If I could use the 15% SS contribution and put it in my private 401k plan, chances are I would be very very wealthy come retirement....

 

[spidey07]

Originally posted by: huberm
I think that is so discriminatory - that they let state and local gov agencies but not private employers.

I for one do not want to contribute to SS, but I am forced to. Yet our State Reps and Congressmen/women are not required to contribute.

If I could use the 15% SS contribution and put it in my private 401k plan, chances are I would be very very wealthy come retirement....

they still have money witheld, but it is in a state sponsered plan instead of a federal one. There has to be data out there on state/local plans and how they stack up against SS. That's why I alway encourage "your retirement/pension? don't count on it. retire on your own and all that stuff is gravy."

It's complicated and again I'm not a financial guy so I don't pretend that I'm correct. But after being with somebody from the public sector for a period of time - it is totally different than the private sector

 

[miri]

Originally posted by: FoBoT

Originally posted by: miri
Why would a city not participate in the Federal Social Security program?

because SS is crap? SS is super duper crap? why would ANYONE want to be roped into SS when it sucks royal donkey balls?

http://www.libertysblog.com/2005/02/privatization-of-social-security-in.html
http://www.commondreams.org/headlines05/0228-02.htm

I know social security is not very good, I just thought that everyone had to pay it regardless

 

[FoBoT]

Originally posted by: spidey07
There has to be data out there on state/local plans and how they stack up against SS. [/b]

there are quite a few details how AWESOME the employees of the three Texas counties plan is compared to SS

http://www.ncpa.org/ba/ba215.html

But while the cost of the private program, known as the Alternate Plan, is virtually the same to the employee and employer as Social Security, the benefits are far greater. According to First Financial Benefits, Inc., which created and administers the plans:

* A person retiring today at age 65 with 40 years of deposits and an annual salary of $20,000 would retire with $383,032 in a personal account.

* Someone with a $30,000 salary for 40 years would retire with $573,782.

* And a person with a $50,000 salary for 40 years would retire with $956,303.

A personal retirement account this size provides a much larger postretirement income than does Social Security. Moreover, retirees under the Alternate Plan have a number of options not available to retirees under Social Security. For example, those with the Alternate Plan can choose among several annuities or take their money in a lump sum. As the figure shows, under one option:

* A retired $20,000-per-year worker with the personal retirement account would receive $2,740 each month at current interest rates, while Social Security benefits would be about $775 per month.

* A $50,000 per year worker would receive $6,843 from the private plan, compared to $1,302 from Social Security.

 

[spidey07]

FoBoT,

While this would make for a great P&N discussion I thank you for the excellent information.

I'll restate my earlier post - retire for yourself, on your own...anything else is gravy.