Hudson ISD and some Texas teachers used a legal loophole in a federal law to secure Social Security benefits to which they were not entitled. You see Texas teachers participate in a pension plan and do not contribute to social security through their paychecks.
In 2003 through 2004, the school district hired 1,887 teachers to work a single day as a janitor or a clerk, the only two positions that qualify for participation in the Social Security System, so they could "retire" in a position eligible for full spousal or survivor benefits.
The school district charged each teacher $300 to take advantage of this loophole which amounts to over half a million dollars in gross income for Hudson ISD. But Hudson ISD is not alone. Other districts did the same exact thing.
Now, a self-described government watchdog has filed suit saying that Texas' one-day hiring program will cost Social Security $2.2 billion in paid out benefits.
Social Security is in enough trouble without paying benefits to people who are not entitled. That's what we think. Tell us what you think.