Reports and Surveys | April 17, 2026

The Impact on the Public Sector of Mandating Social Security

Sponsors of public sector retirement plans can decide whether to enroll their employees in Social Security. In an attempt to delay the projected insolvency of Social Security’s Trust Fund Reserves, some federal policymakers contend that the U.S. should make coverage in Social Security mandatory for all public sector workers.

The Coalition to Preserve Retirement Security (CPRS) recently released The Hazards of Mandating Social Security on the Public Sector, a report we prepared for CPRS that presents an analysis of the potential impact that requiring public sector participation in Social Security would have on:

State and local government workers
State and local government employers
Taxpayers

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The Impact on the Public Sector of Mandating Social Security

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Mandating that all public sector workers join Social Security would be hazardous on many fronts

Mandatory Social Security participation for all state and local government employees would result in several negative and unintended outcomes, including:

Increased costs for public employees, plan sponsors and taxpayers
Affect current public retirement plans, resulting in possible decreased plan funding, decreased member benefits and plan freezes or closures
Replace local discretion with a federal mandate, which would limit the ability of state and local governments to effectively manage their diverse workforces

Moreover, it would fail to effectively address ongoing Social Security funding concerns.

Download the report, which includes state-specific data in tables and a map that illustrates the relative impact on each state.

Register for a webinar to learn more about the implications of mandating public sector participation in Social Security

On April 29, 2026 at 3 pm (ET), CPRS will host a webinar about the study and report featuring a presentation by Dan Siblik, ASA, FCA, EA, MAAA, Vice President and Actuary.

Have questions about the implications of mandatory participation in Social Security for your state?

We have answers.

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.