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ERIC Number: ED227548
Record Type: Non-Journal
Publication Date: 1982-Jul
Pages: 7
Abstractor: N/A
Reference Count: N/A
Discontinuing Social Security: Reallocating Employer Funds to Improve Employer Fringe Benefit Plans.
Marsee, Jeffrey A.
Texarkana (Texas) Community College and Texarkana Independent School District left the federal Social Security System (SSS) and reallocated SSS funds to a self-administered fringe benefit program, while also returning employees' SSS contributions to them intact. Several safeguards for Texas employees were already in place through the Texas Teacher Retirement System, including disability and health insurance and a tax-sheltered annuity (TSA) option. Benefits to employees of withdrawing from SSS included free life, health, and longterm disability insurance; a TSA, plus increased disposable income; and voluntary, not mandatory, retirement plans. Benefits to the employers included self-administration of fringe benefits, a better plan that had lower costs than SSS, no further funding of part-time employees, and, for the school district, no need to keep an insurance reserve. Among the concerns about leaving SSS are greater exposure of younger employees to high disability risks, employers' possible inability to cover longterm disability insurance costs, probably higher insurance premiums after SSS-covered employees move on, and possible drawbacks for today's more mobile workforce because SSS is national while state and local plans are not. On balance, the employers feel withdrawal from SSS was wise. (RW)
Publication Type: Speeches/Meeting Papers; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Laws, Policies, & Programs: Social Security