Monday, February 22, 1999
Universal Social Security may hurt states, Taft says
BY PAUL BARTON
Enquirer Washington Bureau
WASHINGTON — Social Security reform that calls for universal coverage of state and local employees would be a disaster for Ohio and other states where they are not now included, Gov. Bob Taft warned members of the National Governors' Association (NGA) on Sunday.
Such a step, he said, could do nothing less than affect the financial solvency of public retirement systems in Ohio. “It's a huge impact,” Mr. Taft said.
The issue of whether to extend Social Security coverage to state and local employees not now included is expected to receive considerable attention this year as White House and congressional efforts to address the long-term solvency of Social Security move forward.
Some advocates of Social Security reform see it as a way to bring additional money to the system.
In Ohio, more than 1.2 million state and local employees, public school teachers, police, firefighters, state troopers and other public employees stand to be affected.
Mr. Taft worked behind the scenes Sunday at the NGA's winter meeting to gather signatures on a letter that he plans to present to President Clinton today when the governors meet with him at the White House.
The governor said he is worried that various Social Security reform commissions over the past two years have recommended universal coverage of state and local employees.
Fourteen states now have employees who are legally exempt from Social Security because they have public pension systems instead. Many of them, including Ohio, set up their public pension systems before Social Security was created.
Bringing those estimated 5 million workers nationwide into the system would mean that both state government and the employees would have to start paying Social Security taxes. It is a 6.2 percent payroll tax.
Ohio officials, representing one of the largest states affected by the issue, worry it would put a huge strain on state and local governments and could force them to reduce benefits in their retirement plans.
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Universal Social Security may hurt states, Taft says
