State and local government employees may receive benefits under which of the following systems?

State and local government employees may receive benefits under both Social Security and a local retirement system, making the first choice the correct answer. This is due to the fact that participation in Social Security can vary by state and local government entities. Some state and local government employees are covered by Social Security, while others may not be if they are enrolled in alternate retirement systems.

Participation in a local retirement system is common among government employees, providing them with pension benefits that may complement or replace Social Security benefits. Therefore, many state and local government workers have access to both systems, which ultimately enhances their retirement income potential.

The other options present misconceptions about the benefits available to these employees. Limiting the benefits to only a local retirement system or federal retirement benefits ignores the potential for dual benefits from Social Security. Similarly, suggesting that no benefits are available fails to recognize the established systems designed to support government employees post-retirement.