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.