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Structural Changes Needed in State and Local Government Employee Retirement Plans

Summary by American Enterprise Institute
Although most think Social Security is a universal program covering all workers in the United States, a small but significant share of the workforce is exempt from its payroll taxes. About one-quarter of state and local government employees—primarily teachers, along with some police officers, firefighters, and general government workers—do not participate in the program. This patchwork of coverage stems from historical decisions made decades ago…

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American Enterprise Institute broke the news in Washington, United States on Wednesday, May 28, 2025.
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