Social security defections may increase. The withdrawal of Los Angeles County and nearly 100 local governments from the social security system on Jan. 1 could be the first of many at a time when broader coverage is considered vital to reinforcing the troubled system.
The loss of 55,000 employees contributing from LA is expected to cost social security $143 million in 1983. The local defections, nationwide, dropped about 21,000 from the system's roles, with a further loss of $546,000.
Federal, state, and local governments and nonprofit organizations are not required to be a part of the social security system, although most are. Analysts are urging the removal of these exemptions to bring in more income for the underfunded system.
Instead, nearly 400 more government units with about 168,000 employees are considering leaving social security on Dec. 31 of this year or 1984. Withdrawals are only possible at the end of each year.m