What teachers pay depends on when and where they were hired
Most teachers in the United States do pay Social Security taxes on their salary. However, some teachers — particularly those hired before a certain date or working in specific states — pay into a teacher pension system instead and do not pay Social Security taxes at all. A smaller group pays into both systems at the same time. Which category you fall into depends on your hire date, your employer (school district or state), and the pension plan your district uses.
If you are a teacher or married to one, knowing which system you are in matters because it affects your retirement income, your spouse's benefits, and what you owe in taxes now. The rules are different in every state and sometimes different between districts within the same state.
Key Takeaways
- Teachers hired after 1984 in most states pay Social Security taxes like other workers, though some states still use pension-only systems.
- Teachers in pension-only systems do not pay Social Security taxes and typically do not receive Social Security benefits based on their teaching work.
- Some teachers pay into both Social Security and a pension plan at the same time, which can affect how much they receive from each.
- If you have a pension and also worked jobs that paid Social Security, your Social Security benefit may be reduced by the Windfall Elimination Provision.
- You can contact your state's teacher retirement system directly to find out which system covers you.
Teachers who pay Social Security taxes
Most public school teachers hired after 1984 pay Social Security taxes on their salary. This includes teachers in large states like California, Texas, New York, and Florida. These teachers pay the standard 6.2% Social Security tax (with their employer matching 6.2%), just as other workers do. When they retire, they are may have access to to Social Security benefits based on their teaching income, in addition to any pension their district offers.
The shift to Social Security happened gradually. In 1983, Congress passed a law requiring most new public employees to pay into Social Security. School districts began enrolling new teachers in Social Security over the following years. If you were hired after 1984 and work in a state that made this change, you almost certainly pay Social Security taxes.
Teachers in pension-only systems
Some states and districts still operate pension-only systems where teachers do not pay Social Security taxes at all. These systems are most common in Illinois, Louisiana, Ohio, and Texas (though Texas also has districts in the Social Security system). Teachers in these systems pay into their state or local teacher retirement fund instead. They receive a pension based on their years of service and salary, but they do not earn Social Security credits from their teaching work.
If you are in a pension-only system and retire, you will not receive a Social Security benefit based on your teaching career — even if you taught for 30 years. However, if you worked other jobs that paid Social Security taxes (before teaching, after teaching, or part-time during teaching), you may be may have access to to a Social Security benefit based on that work.
Teachers who pay into both systems
A smaller number of teachers pay into both Social Security and a teacher pension plan at the same time. This happens in some districts where teachers were given the choice to switch systems, or where a district changed its system and allowed existing teachers to stay in the old one. These teachers pay both the Social Security tax (6.2%) and a pension contribution (usually 5% to 10% of salary) simultaneously.
If you pay into both systems, you will receive both a pension and a Social Security benefit when you retire. However, your Social Security benefit may be reduced by a rule called the Windfall Elimination Provision (WEP). This rule lowers Social Security benefits for people who also receive a pension from work that did not pay Social Security taxes. Even though you paid Social Security taxes as a teacher, if you also have a pension from the same job, WEP may explore.
How the Windfall Elimination Provision affects your benefits
The Windfall Elimination Provision is a federal rule that reduces your Social Security benefit if you receive a pension from work where you did not pay Social Security taxes. For teachers, this usually means: you worked in a pension-only system for part of your career, then switched to a Social Security system, or you have a pension from teaching and also worked other jobs that paid Social Security.
WEP can reduce your Social Security benefit by up to 50% of your pension amount, though the exact reduction depends on your age when you claim and how much you earned. If you were born after 1924, the reduction is calculated using a formula that the Social Security Administration publishes each year. The reduction is not automatic — it only applies if you meet specific conditions — but it is common enough that you should ask about it when you contact Social Security.
There is also a rule called the Government Pension Offset (GPO) that affects spouses and survivors. If you receive a pension from work that did not pay Social Security taxes, your spousal or survivor benefit from your spouse's Social Security may be reduced or eliminated. This rule is separate from WEP and applies even if you never worked in Social Security yourself.
How to find out which system covers you
The easiest way to know whether you pay Social Security taxes is to look at your pay stub. If you see a line for "Social Security tax" or "OASDI" (Old-Age, Survivors, and Disability Insurance), you are paying into Social Security. If you see only a pension contribution and no Social Security line, you are in a pension-only system.
You can also contact your state's teacher retirement system directly. Every state has one — it may be called the Teachers Retirement System (TRS), Public Employees Retirement System (PERS), or something similar. A quick search for "[Your State] teacher retirement system" will give you the phone number and website. They can tell you when ready whether you pay Social Security taxes and what your pension will be worth.
If you have worked in multiple states or changed districts, you may have been in different systems at different times. Your state retirement system can give you a record of your service and tell you which system covered each period.
What to ask your state retirement system
When you contact your state's teacher retirement system, have your employee ID or Social Security number ready. Ask them:
- Do I pay Social Security taxes on my teaching salary, or do I pay only into the pension system?
- If I pay into the pension system, will the Windfall Elimination Provision affect my Social Security benefit?
- What is my estimated pension benefit at retirement?
- If I have worked in multiple states, how do my service credits transfer or combine?
- What happens to my pension if I leave teaching before I am vested (may be able to access to receive benefits)?
Frequently Asked Questions
Can I get Social Security if I was a teacher in a pension-only system?
Not based on your teaching work. However, if you worked other jobs that paid Social Security taxes — before, after, or during your teaching career — you may be may have access to to a Social Security benefit based on that work. Contact Social Security directly to find out what you have earned.
If I switch school districts, do I switch retirement systems?
Usually no. Your retirement system is determined by your state and sometimes by your specific district. If you move to a different district within the same state, you typically stay in the same system. If you move to a different state, you enter that state's system, and your previous credits may or may not transfer depending on agreements between states.
What is the difference between a pension and Social Security?
A pension is paid by your employer based on your years of service and salary. Social Security is a federal program funded by payroll taxes. A pension is usually a fixed monthly amount for life. Social Security is also monthly for life, but the amount is based on your lifetime earnings and the age you claim it.
Does my spouse get my Social Security or pension if I die?
Your spouse may receive survivor benefits from both systems, but the amount depends on your age at death, their age, and which system you were in. If you were in a pension-only system, your spouse's survivor benefit from that pension depends on the plan rules. If you paid Social Security taxes, your spouse may receive a Social Security survivor benefit. The Government Pension Offset rule may reduce their benefit if you had a pension from non-Social Security work.
Can I work part-time and pay Social Security while I have a pension?
Yes. If you work a part-time job outside of teaching that pays Social Security taxes, those earnings count toward Social Security. You can build a separate Social Security benefit from that work even if your teaching pension does not pay into Social Security. However, the Windfall Elimination Provision may still reduce your total Social Security benefit if you have both a pension and Social Security earnings.