1006.1 Can employees covered by a State or local retirement system also be covered for Social Security under a Section 218 agreement?
Yes. Employees covered by a State or local retirement system can be covered for Social Security under a Section 218 agreement (see §1000.2) after a referendum is held. The referendum is held under the State's authorization. (See §1018).
1006.2 What employees are eligible to vote in a referendum?
To be eligible to vote in a referendum, you must be:
A member of the retirement system at the time the referendum is held; and
In a position under the retirement system when:
The notice of referendum is given; and
The referendum is held.
1006.3 What does a retirement system coverage group consist of?
The state has the option to include any of the following in a retirement system coverage group:
All employees in positions under the retirement system;
Only employees of the State in positions under the system;
Employees of one or more political subdivisions in positions under the system;
Any combination of the groups referred to in (B) and (C);
Employees of a hospital that is an integral part of a political subdivision;
Employees of two or more hospitals. Each hospital must be an integral part of the same political subdivision; or
Employees in each institution of “higher learning,” (e.g., colleges, junior colleges, and teacher's colleges).
Generally, a retirement system coverage group includes: (1) all current members of the retirement system; (2) employees who are ineligible for membership; and (3) employees who can choose to become members of the retirement system.
Some States may divide a retirement system and cover only members who want coverage and new members as in §1008.
Last Revised: Jan. 25, 2007