Are some kinds of employees not covered by Social Security?

Yes. According to Social Security Administration (SSA) data, 89 percent of U.S. workers ages 21 to 64 are in "covered" employment, meaning they pay into the Social Security system via payroll or self-employment taxes. But there are groups of “non-covered” employees. These include:

• Some state, county and municipal employees, who are covered by state-funded pension plans rather than Social Security.
• Employees of the U.S. government who were hired before 1984, the year federal agencies came under the Social Security umbrella. These longtime federal employees get pensions under the old Civil Service Retirement System.
• Railroad employees, who are covered by a separate pension system that came into being in the 1930s, around the same time as Social Security.
• Foreign nationals who work in the United States for their home governments or for some international organizations, such as the United Nations. (U.S. citizens who work in the United States for foreign governments — say, an American employed by the French Embassy in Washington — do pay Social Security taxes and are covered.)

Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.