Special education teacher Ryan Howe has asked the school board to let teachers decide whether to pay into Social Security, arguing that the coverage could help ensure a retirement income for newer educators.

Howe, speaking during the public comment portion at the Oct. 13 board meeting, urged the district to pursue a “divided vote” referendum that would allow teachers to individually choose whether to begin contributing 6.2% of their wages to Social Security.

The “majority vote” option would require all teachers to come under Social Security.

Under either option, the district would need to contribute a matching 6.2% of wages if teachers opt into the Social Security system.

Schools Superintendent Joshua Garrett said the district will study the request, including costs and administrative steps.

“I’m not completely opposed to the idea, but it is something that needs to be investigated,” he said.

School board members said they would weigh the proposal. No timeline was set for a decision.

“Retirement now isn’t what it used to be,” said Howe, who has been with the district since 2009 and works at Evergreen Elementary School. “The defined contribution is like a 401(k). But people in the private sector who have 401(k) plans are able to get Social Security along with their retirement.”

Most Alaska teachers are not allowed to participate in Social Security. That opt-out dates to a 1951 federal law that made Social Security coverage voluntary for state and municipal governments; the territory of Alaska opted out of the retirement program.

The state could decide to go back into the Social Security program, or individual school districts could opt in, explained Matt Moser, government relations director for NEA-Alaska, the statewide teachers union.

No school district in Alaska has opted back into Social Security, he said.

Though other state and municipal employees in Alaska receive benefits under a program similar to Social Security — called the Supplemental Benefits System — that program is not available to public school teachers.

Because Alaska’s public school teachers do not earn Social Security credits for their years with a district, they rely on the state-managed Teachers’ Retirement System and personal savings for retirement.

Alaska’s Teachers’ Retirement System shifted on July 1, 2006, from a defined-benefit pension to a defined-contribution plan for new hires. Teachers hired before that date remain in a traditional pension that provides a guaranteed monthly benefit for life based on years of service and highest average pay.

Teachers hired on or after July 1, 2006, are in a 401(k)-style plan funded by state and school district contributions, plus employee contributions, invested in a choice of funds. There is no guaranteed lifetime benefit, and retirement income depends on investment returns.

State and union officials have said the lack of a guaranteed pension for newer teachers — and the absence of Social Security coverage — contributes to turnover and makes recruitment harder, especially in rural communities. Howe said access to Social Security could be the difference “between poverty and doing well” in retirement for many educators.

A “divided vote” referendum would allow individual teachers to choose to remain outside Social Security, but all future hires would be automatically covered.

Garrett noted that for every dollar of salary, the district would owe an additional 6.2 cents in employer Social Security taxes. The district’s payroll costs consume about two-thirds of the annual budget of $6 million; a 6.2% addition could add about $300,000 to district expenses.

He said he wants to review whether other retirement options might serve teachers as well or better than Social Security.

If the district moves ahead, it would need to coordinate with the state and the Social Security Administration to structure the referendum, define the eligible employee group and implement payroll changes for any teachers who opt in.