'The Cost Impact of Mandating Social Security for State and Local Governments' from The Segal Company
About 5 million public employees are not covered by Social Security and requiring all newly-hired government workers to join the program would cost state and local governments $26 billion over five years, according to a 1999 study by The Segal Company. These costs, according to the report, could lead to cuts in retirement benefits for public employees, financial uncertainty in public pension funds and pressure on state and local governments to raise taxes or cut public services, while adding just two years to the projected solvency of Social Security. The map above shows the effect on individual states. States in green face a five-year cost of $20 million; yellow, $20-100 million; blue, $100-200 million; white, $200-500 million; and red, more than $500 million. For the full study, click here.
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