[wideawake]

At that time the city had an agreement with the federal government that made Detroit Police officers ineligible for social security and Medicare.

How does that work, exactly?

[RinaseaofDs]

Same deal in Kleptofornia. State workers pay into a deferred comp system run by the state. As such, they don’t pay social security, and are not eligible for the same. I have one brother, possibly two on that system. One works for BART, the other the state.

[pogo101]

It’s the same with local employees here in CA (and, I believe, state employees too): they AREN’T TAXED FOR Social Security and Medicare, and thus aren’t eligible for them ... because they have their own retirement plans instead.

I worked for a CA city briefly and strongly preferred this approach. Social Security and Medicare are going bankrupt. Far better to pay into a smaller, privately INVESTED fund for retirement payouts and medical care. (Still less preferable than a free market, but hey.)

[kearnyirish2]

“How does that work, exactly?”

I had a retired cop here in NJ describe it to me; as I recall, he thought that because his taxpayer-funded pension was so far above what most people would collect under Social Security, and because he could retire so young, it was almost viewed as “double dipping” if he could also collect SS. He didn’t mention the healthcare part.

[sunrise_sunset]

It’s common. Public pensions take the place of social security. They are not like private sector pensions which are in addition to social security.

[sport]

A lot of States and cities had it for those that worked for the city or State. Florida had the Florida Retirement System. The Rail Road has their own retirement. I can’t tell you how they work[ed], but you can probably find out on your on, if interested. Hope that helps a little.

[nascarnation]

How does that work, exactly?

Like anything involving the IRS, "it's complicated"

Some number of public employees were allowed to stay out of the SocSec and Medicare system.

http://businesspublicpolicy.com/?p=839

http://www.ssa.gov/pubs/EN-05-10051.pdf

[goat granny]

Police don't pay into SS so they cannot collect that as a pension. My father was a Detroit cop, but started in the late 20’s and retired in the 1950’s at the age of 50. He became self employed, hanging new storm doors, windows etc for a couple of companys. He paid into SS by law then. He stopped at the age of 65 and collected SS, and his retirement from the city. It was the city that made the contract of 25 years and out if you wished. Those today will have next to nothing when they retire. No city pension and not eligible for SS. That sucks.