State Social Security Administration
Frequently Asked Questions
Q: What is a "rehired annuitant?"
A: A rehired annuitant is an individual who has retired from a Missouri school district and is drawing his/her retirement from PSRS and has been rehired by a Missouri district. (10/22/2008)
Q: We used to exempt Rehired Annuitants. What changed?
A: Previous guidance was that rehired annuitants were exempt, however, with the recent ruling from SSA, it has been determined that a rehired annuitant is only exempt if he or she is a member of the PSRS. Once a member retires, they are no longer considered a member. It is assumed that majority of annuitants will not forfeit their retirement receipts in order to start a new membership. (10/22/2008)
Q: "Old hire" teachers, hired before April 1, 1986, are exempt from Medicare withholding. If an "old hire" teacher retires, but returns the next school year as a substitute, is he/she still exempt from Medicare withholding?
A: No. The "old hire" Medicare exemption ceased when the individual severed their employment relationship with the district upon retirement. Should he/she return to the district, Medicare should be withheld from all wages. (10/14/2008)
Q: Why is a Coaching position not exempt from Social Security withholdings?
A: The exempt positions are defined by the statutes in place at the time the 218 Agreements were signed. Those included PSRS members working in the positions of "teacher, teacher-secretary, substitute teacher, supervisor, principal, supervising principal, superintendent or assistant superintendent, nurse, or librarian." (10/14/2008)
Q: If a certificated teacher holds the position, is he/she automatically exempt from Social Security withholding?
A: No. The withholding is determined by the position, not by the person holding the position. (10/14/2008)
Q: Are bus driver or cook positions exempt from Social Security withholding?
A: No. All wages for those positions are subject to Social Security and Medicare withholding. (10/14/2008)
Q: What is a 218 Agreement?
A: A Section 218 agreement is a written voluntary agreement between the State, the political subdivisions, and the SSA to provide Social Security and Medicare coverage for state and local government employees. These agreements were mandated by the federal government in the 1950's. (10/14/2008)
Q: Are school administrative positions covered or not covered by Social Security?
A: If you are a Category #1 or #2 district, then Administrative positions, with the exception of those defined in law when the 218 was signed (teacher, teacher-secretary, substitute teacher, supervisor, principal, supervising principal, superintendent, or assistant superintendent, nurse, or librarian) were considered ineligible from retirement way back when and are therefore not exempt from SS coverage. They are part of an Absolute Coverage Group under Social Security and that can never change. (10-24-2008)
Q: Are Counselor positions exempt from Social Security withholding?
A: SSA has determined that the Counselor position is exempt from Social Security. This determination was made based on documentation from 1948 that supports the requirement for a Counselor to hold a teaching certificate. At this time, other similar positions including, but not limited to, School Psychological Examiners, School Psychologists, Adult Education Supervisors, Career Education Counselors, Career Education Placement Coordinators, and Speech-Language Pathologists are still under review. Please check back on this web page for continual updates. (11-18-08)
Q: Are Vocational Education Instructors included as a "Teacher" for retirement definitions or is it covered by Social Security?
A: These positions are going to be evaluated in the very near future. Many questions have come up that needed more detailed research into the specific requirements and timing. As soon as we are aware, a revision will be posted. (REVISED 12/4/08)
Q: Is the Parents As Teachers position excluded from Social Security coverage?
A: For Category #1 and #2 districts, the answer is no. PATs do not require a teaching certificate and therefore would not have been included in the retirement system. Even though many PAT's do hold teaching certificates, the determination is made on the state's requirements of the position, not the person holding the position. (10/31/08)
Q: Can a 218 agreement be rescinded now so we don’t have this problem?
A: Under Federal law, effective April 20, 1983, Section 218(f) of the Act was amended to provide that no coverage agreement may be terminated, either in its entirety or with respect to any coverage group. This also applies to any agreement or modification which would become effective after that date. (11-7-2008)
Q: Are Speech Pathologists affected by this?
A: We are reviewing positions as quickly as we can. This position has not yet been researched, but is on the list. Please be patient. (11-7-2008)
Q: How can we find out about our Social Security benefits, the Windfall Provision (WEP), and how many quarters we need in order to receive Social Security?
A: That is a Social Security benefit question and you should contact an area Social Security Administration office near you for benefit calculations and questions. (12-8-2008)
Q: Are Community Colleges affected by this? How can we find out more information?
A:  The general answer is: Yes. Majority of the Community Colleges were originally formed as Junior Colleges under the direction of a local school board. Over time, they parted from the district, however their 218 agreements remained in force. Each Community College will need to be researched and evaluated for its individual status. For the time being, Community Colleges should follow the same direction as the school district you originally were part of. In the future, as time allows, we will do correcting modifications to make sure the entity names are current. (12-01-08)
|
