Government Pension Offset

If you worked for a government agency, and paid no Social Security taxes, and you also worked in the private sector and are eligible for Social Security retirement benefits, your Social Security may be reduced through the "Government Pension Offset".

About 40 percent of public school teachers aren't covered by Social Security. In other words, teachers in 15 states aren't covered by Social Security. In these states, teachers don't pay Social Security taxes, and instead rely on state-run pensions.