Seasonal Lifeguards May Miss Out on Social Security Credits Despite Real Wages
Many seasonal and temporary public workers in California are not earning Social Security credits from their wages due to participation in a state-run retirement program. These employees, including those enrolled in the PST Retirement Program, contribute 7.5% of gross pay into an alternative account instead of paying Social Security taxes. This means that even though they receive real paychecks and withholdings for Medicare are present, these earnings do not count toward the 40 credits needed to qualify for a Social Security benefit or help calculate future benefits using the 35-year formula. The issue is widespread among seasonal government workers across the U.S. who may be unaware that their public-sector employment operates under different payroll rules than most private jobs. Workers are advised to check W-2 forms, specifically Boxes 3 and 4 for OASDI (Social Security) withholding, as Medicare deductions alone do not confirm coverage. This situation can delay Social Security eligibility by years or reduce the size of future benefits. The article highlights a recent heroic rescue performed by a young lifeguard but notes that this does not clarify whether their wages are covered under Social Security.
Topics: public sector employment retirement planning social security