1004.Absolute Coverage Groups

1004.1What is an absolute coverage group?

An absolute coverage group is composed of employees in positions not covered by a State or local retirement system. Coverage is provided for all current and future employees in the group unless one of the exclusions in §1012 applies.

1004.2What is an ineligible?

An “ineligible” is an employee who is in a position under a retirement system, but is not eligible for membership in the retirement system. Ineligibility for membership may be because of age, length of service, date of hiring, etc.

1004.3Can a State cover ineligibles with an absolute coverage group?

Yes. A State can cover ineligibles as a part of or in addition to the absolute coverage group. However, the State must decide whether coverage of the ineligibles will continue or terminate if the ineligible later becomes eligible for membership in a retirement system (see §1006).

Last Revised: Oct. 11, 2005