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Many states had their own pension plans prior to the implementation of Social Security. Those states were given the option of going to SSI or staying with their own pension plan. However, any quarter a worker was on a state pension and was not paying FICA would NOT count toward SS. So if you started with a state at 25 years old and worked 30 years, you would only have the state pension and no social security quarters for that time. Also since some states won't allow pension payouts before 65 (just like SS).
I'll mention two things. The system was developed by the state and anybody who wanted to work for the state paid into a pension plan but not SS. The workers are not to blame for that. They were given no choices. Workers and the state made a deal. Who is breaking the deal?
The workers have no retirement income except for the pension they earned unless they had 40 quarters of SS before or after their state service. They aren't even eligible for spousal benefits unless their pension is less than 1/2 of their spouse's pension (I believe). Even so, if you get 40 quarters, it is probably going to be at a lower-paying job and you'll get a small SS check.
In many states that are currently suffering pension problems, the state often failed to contribute their share (remember that employers pay into SS for each employee, same as state pensions). Sometimes the state just un-prioritized employee payments, sometimes the pension agency overestimated return on employee money and the state figured it didn't have to contribute that year. When that happens you have New Jersey's problem. The state didn't contribute for 13 or 14 years in a row and the pension fund was in the crapper.
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