The Gallatin R-5 Board of Education discussed a new decision from the Social Security Administration which could affect retirement benefits for thousands of Missouri public school employees, during their regular meeting held Nov. 13.
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Missouri public schools have operated under a voluntary agreement with the Social Security Administration since the 1960s. Under that agreement, public school employees have been exempt from paying social security taxes as long as they were covered under the school’s own retirement system.
But after a recent Internal Revenue Service audit of two Missouri school districts, the Social
Security Administration changed its position and informed school districts that too many of their employees have been exempt from paying Social Security taxes.
Missouri teachers currently pay 13% of their income into the Public School Retirement System, and their employers match that amount. Non-teachers pay 6.25% of their income, which is matched by employers, and also take part in the federal Social Security system.
Federal officials now say that only teachers, principals and a handful of other positions can be exempt from paying into Social Security.
The school’s retirement system is considered more generous than social security. The new interpretation could reduce benefits for more than 10,000 employees, including guidance counselors, food service employees, maintenance employees, vocational teachers, instructional aides and certain office administration and transportation workers.
"If they switched now, it would cut retirement by a third for some school employees," said Superintendent Jim Ruse. "It’s causing quite a quandary."
The Social Security Administration is asking school districts to come into compliance with its new determination beginning July 1, 2009.
In other business at Thursday’s meeting, bills in the amount of $309,775 were approved for payment. The board went over the ledger and heard a report on investments at $1,680,000. Interest ranges from 3.0% to 3.3%.
The board considered whether the smoking policy should be ‘building exclusion’ or ‘campus free.’ The issue was tabled until the summer, rather than make a mid-year change.
Mr. Ruse gave a utility usage comparison.
During new business, an updated crisis plan was approved.
The board approved one more half payment for the CEE lawsuit. The lawsuit, of which Gallatin is a member, is presently in the Missouri Supreme Court and is expected to be heard in March, or perhaps sooner.
The board discussed the need to reinstate long-range planning ideas.
Mr. Ruse reported to the board that defibrillators are presently in both gymnasiums. He also reminded board members of the upcoming Thanksgiving dinner.
@center = October Meeting
During the regular meeting held in October, bills in the amount of $276,752 were approved for payment.
The board went over the ledger report.
During old business, the superintendent’s evaluation was approved and finalized.
During new business the board looked over the school’s five year comprehensive budget.
The Comprehensive School Improvement Plan was reviewed. The board ironed out details regarding plans for the achievement level for students, including strategies to improve on those areas where students did not test well.
Gallatin R-5 achieved 13 out of 14 goals on ARP, and may still be recognized for distinction in performance as in past years; however, the findings are in the preliminary stage and the classification is uncertain.
Test results were reviewed and explained by elementary counselor Mrs. Bird and high school counselor Mrs. Cox.
Mr. Ruse updated the board on the work on the tin siding. Details about the warranty are being worked out with the owner of the company.
Roof repair is complete.
Brick repair at the elementary school is finished. The project was bigger than projected. The cost to repair the brick for the two sixth grade rooms was $45,000.