Faculty says no to Social Security

(Fall 2010)

By TROY CASE

During a recent straw poll conducted at FVCC, teachers and faculty voted down a measure to introduce Social Security as their pension provider.

The unofficial poll was the second such poll in seven years and was conducted at the request of the faculty association.

“It’s a shame new faculty coming on board will lose the Social Security benefits they are entitled to,” said Faculty Association president Ronnie Laudati. “New employees are not overly enthused to not be a part of Social Security and FVCC is lessening the potential faculty pool.”

There is a prevalent misconception that every able-bodied citizen pays into the Social Security tax system. A clause written into the Social Security Act of 1935 included exemptions for federal, state and local governmental employees.  When FVCC was established in 1967 the school was granted status as a “district” and employees worked for the local government.  At that time the Board of Trustees opted out of paying Social Security tax.

In order to opt out of the tax FVCC must offer employees alternative pension plans. 

There are three state sponsored plans offered to new employees of the college:

·         Teacher Retirement System—offered to full time and adjunct teachers
·         Public Employee Relief System—offered to staff and administration
·         Plan 403B—a voluntary plan

These plans are defined contribution plans in which employees and employers contribute to a savings fund to be used in entirety as retirement benefits.  Social Security is a defined benefit plan and grants a predetermined amount of benefits in proportion to the amount of tax collected.

“The voluntary 403B is an excellent retirement plan,” said Warren Tolley, FVCC Director of Human Resources.  “In my opinion it is a better plan than Social Security.”

Also within the “opt out” clause of Social Security, employees can opt to pay into the tax at any time.  This requires a majority vote of faculty and teachers.  If a majority vote is reached the Board of Trustees sends a letter to the State Social Security Administration requesting Social Security.

The recent straw poll was an unofficial voting procedure to determine if a majority of votes for Social Security was going to be reached. Of the 156 employees currently using the Teacher Retirement System, 39 voted yes for Social Security. Of the 117 employee currently using the Public Employee Relief System, 39 voted yes. The 403B plan is a voluntary plan and those employees currently under this plan do not participate in the straw poll.

All potential hires at FVCC are told as a part of the interviewing process that they will not be offered Social Security.

“Never in the seven years that I have worked at FVCC has anyone turned down an offer of employment based on the fact we don’t offer Social Security,” Tolley said.

Troy Case is a student of Journalism 101C.