Press Release, AP, June 29 2004
http://www.cnn.com/2004/US/Southwest/06/29/
teacher.retirement.ap/index.html Teachers in Texas don’t have to pay into the social security program, because they pay into a separate state pension fund, from which they collect after retirement. Under a current loophole in the system, however, a teacher could work one day in a job that paid into the social security system and collect half of their spouse’s social security benefits after retirement.
This loophole made one-day janitors out of a lot of teachers. Approximately one quarter of all retiring teachers since 2002 have taken advantage of this loophole, or 3,521 total people. It is estimated that their actions could cost the social security system up to $450 million.
Texas is about to close the loophole and force those looking to collect both social security and their state pension to pay into the system through another job for at least five years before being eligible for social security benefits. The impending end of the one-day cash out has encouraged a number of teachers to retire early. In fact, 35% more teachers retired last year than in the previous year.
