One solution typically considered when Congress and the Administration pursues Social Security reform is mandatory Social Security coverage of state and local government employees, including public school teachers such as CalSTRS members.

The majority of funding for teacher retirement benefits today comes from investment income on contributions made by employees, employers, and the state. It is the position of CalSTRS that this investment income would be severely eroded if significant contributions are diverted from CalSTRS and made instead to Social Security. Mandating Social Security coverage for all newly hired teachers would not only adversely affect newly hired teachers, but would also have a far-reaching impact on the public schools, active and retired members and CalSTRS itself.

Success in preventing mandatory coverage will depend largely on those who will be adversely affected by it. It is important that Congress hear, either through a letter, e-mail, or a telephone call, from every person and group concerned about this issue.

CEO Letter Regarding Proposal to Mandate Social Security Coverage for New State and Local Government Workers (PDF - 311KB) Letter submitted to the House Ways and Means Committee from the Chief Executive Offer of the California State Teachers' Retirement System on May 26, 2005.

Statement to the U.S. House of Representatives Committee on Ways and Means
(PDF - 39KB) A written statement by California State Teachers' Retirement System regarding proposals to mandate social security coverage of state and local government workers presented to the subcommittee on social security on ways and means U.S. House of Representatives - June 9, 2005

Hemet Unified School District's Response to the Proposal to Include the California State Teacher's Retirement System into the Social Security System (PDF - 280KB) The Hemet School District in Riverside County completed a study that shows the impact of mandating Social Security dated September 7, 2001

Potential Impact of Mandatory Social Security Coverage (An analysis by Milliman Consultants and Actuaries) (PDF - 1,138KB) March 30, 2005, Milliman Consultants submitted an analysis of mandating social security to new hires only. This also includes the Hemet Unified School District's study.