Email, Jacob Barrett, media relations coordinator, Austin Independent School District, May 19, 2015
Our district is trapped paying 6.25% for our employees’ income on top of the deduction of that same amount from each employee’s paycheck because of a federal mandate.
We are one of only forty-seven school districts in Texas that pay this.
It is very difficult for AISD to compete for quality teachers when surrounding districts can automatically pay that much more in take-home pay.
This is why we don't count it as part of our total compensation.
Teachers fresh out of college are not interested in Social Security benefits; their primary concern is earning enough to pay their rent and other expenses.
As a result, our district is at a competitive disadvantage in salaries when it comes to attracting and retaining teachers and other employees.
Some people say that the money we spend will benefit our employees down the road when they can collect both Social Security and TRS. However, unless an employee contributes to Social Security for 30 years or more, they will not be eligible for full Social Security retirement benefits because of their TRS pension (which they also paid for). If the employee has 20 years or less, the benefit is reduced to 40 percent of the full benefit to which they would otherwise be entitled.
In order to receive Social Security benefits at all, you must contribute for 40 quarters, or 10 years. The average teacher in Austin ISD only has 8.6 years of service in our district, so unless they work in another district, they will never reap a benefit from their investment, or the District’s, on their behalf.