Do Teachers Pay Social Security?

Whether a teacher pays into Social Security depends on their state of employment. The Social Security Act of 1935 originally covered only private-sector employees. While federal law changed in the 1950s to allow state and local governments to join Social Security, some states opted out. These states chose to maintain their own established retirement systems for public employees, including teachers. As a result, many teachers today do not pay Social Security taxes and instead contribute to a separate state pension plan for their retirement income.

State Pension Systems as a Social Security Substitute

In states that opted out of Social Security, teachers receive retirement benefits through a state-run pension system. These systems act as a substitute for Social Security. Instead of paying the 6.2% Social Security tax, these teachers contribute a portion of their salary to a state pension fund. The school district also contributes to this fund on the teacher’s behalf.

A teacher’s pension benefit is calculated using a formula based on their final average salary and years of service. This contrasts with Social Security, which bases benefits on average lifetime earnings. State pension benefits are often higher than those for public employees who also get Social Security, compensating for the lack of a federal benefit.

This arrangement exists in 15 states. In the following states, most or all public school teachers are not covered by Social Security:

• Alaska
• California
• Colorado
• Connecticut
• Illinois
• Louisiana
• Maine
• Massachusetts
• Missouri
• Nevada
• Ohio
• Texas

In Georgia, Kentucky, and Rhode Island, Social Security coverage for teachers can vary by school district. In these non-participating systems, a teacher’s retirement plan is managed at the state level.

End of the Windfall Elimination Provision and Government Pension Offset

Two former federal rules, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), used to reduce Social Security benefits for public servants with pensions from non-covered jobs. The WEP lowered a teacher’s own earned Social Security benefits from other work, while the GPO reduced any spousal or survivor benefits.

However, these provisions were repealed by the Social Security Fairness Act, signed into law in early 2025. Teachers with pensions from non-covered employment will no longer have their Social Security benefits reduced by these rules. The repeal applies to benefits payable after December 2023, and the Social Security Administration is processing retroactive payments for those affected.

Earning Social Security Credits Through Other Employment

Teachers in a state pension system can still earn Social Security credits through other employment. They earn these credits from any job where they pay Social Security taxes, such as part-time or summer work. This also includes any covered employment before or after their teaching career.

To qualify for Social Security retirement benefits, a worker needs to accumulate 40 credits. In 2025, one credit is earned for every $1,810 in earnings, with a maximum of four credits per year once earnings reach $7,240. A teacher could earn all four credits for a year through a summer job that meets this income threshold. These credits are permanent and accumulate over a lifetime.