8.2 Eligibility - Who Is Covered?
Actually, it is easier to say who is NOT covered by Social Security as most individuals are since most individuals work, which is the key - employment. Eligibility and benefits are determined by employment - which only makes sense since the very program is funded through payroll taxes. If you don't work, then you haven't participated in the funding and you are therefore not eligible to reap the rewards. We will see, however, that as in life, there are always exceptions to the rule. Those Americans who typically are not eligible for SS benefits are in the following groups:
- most federal employees hired before 1984 who are covered by Civil Service Retirement or another similar pension plan;
- approximately 25% of state and local government employees who are covered by a state pension program and who have elected not to participate under the Social Security program (each state and local government unit decides for itself whether or not to participate); and/or
- railroad workers who are covered under a separate federal program - the Railroad Retirement System.
