Social Security Loophole - KTRE.com | Lufkin and Nacogdoches, Texas

03/10/07

Social Security Loophole

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.
Powered by Frankly