Do we have any social security experts?

[Ksandra]

Teacher background:

Teachers by default do not pay into SS, but into a teacher retirement fund. Because of this, in California we get severely reduce benefits for what we might have paid into previously (some states don't give any at all). So, for example, for all the years I worked as a waitress, bank teller, etc. I will get some SS, but it will be minimal.

My school has been having teachers pay into this private retirement fund where we put in 8% and the school matches it. Every year we get audited to make sure we are following the Ed Code and we got dinged for doing this. Apparently California has an ed code that says charters can ONLY use CalSTRs, CalPERs, or Social Security. According to our finance director STRs and PERs are severely underfunded and it's questionable that it's going to last for much longer. So she is having us pay into SS instead. SS is a 6% return and she is going to offer us adding another 2% (or more) to the private fund and they will match that.

But this is where I panic. If we are paying into SS, and say I either leave my job and go to another school years down the line, or perhaps they decide to switch to STRs and PERs at some point, does that mean my SS benefits for those years paying into it as a teacher are going to get severely reduced? Or does that rule I listed above not apply since it I was doing it as a teacher vs. something else?


The finance director has been trying to get info from SS, but they aren't the best help. And as much as I love our director, I worry she may try to sugar coat it so we don't worry, but I want the real facts.

Some links about our options:

http://www.calstrs.com/charter-schools

http://ctainvest.org/home/planning-f...csecurity.aspx


I am not sure if this should be a job dealbreaker for me. I hope not, as I have a really awesome thing going on at this school, and I don't want to leave it. But if it is the difference between being able to retire at a reasonable age, vs. having to work to death because I lost out on money I should be owed, then idk....

[tyven]

You gotta take this to /r/personalfinance

[Ksandra]

You gotta take this to /r/personalfinance

Oh! Good idea, thanks!