A Section 218 Agreement is an Agreement between the State and SSA. The State enters into an Agreement with SSA on behalf of each political subdivision within the State that wishes to extend Social Security Coverage to its employees. SSA cannot enter into an Agreement with a political subdivision. The Section 218 Agreement is a legal document, which incorporates the provisions, definitions, and conditions for coverage consistent with Federal and State laws.

SSA makes final determinations regarding federal laws that govern State Section 218 Agreements. These determinations may be based on decisions regarding certain specific issues to which either Federal or State law is applied. Where State law may have a bearing on the issue, SSA or the state administrator may request that the state administrator obtain an opinion from the State's attorney general (or other legal officer, as appropriate), if no such opinion already exists. SSA will give the opinion due weight in making the final determination.

Negotiations between a State and its political subdivisions in connection with potential coverage under the State’s Agreement are an intrastate matter. SSA does not have a stake in those decisions and will not participate in that process. Ultimately, it is within the State’s discretion to determine for whom, whether, and when to extend Section 218 coverage, subject to the requirements of the Act. Once the State decides to expand the scope of coverage under its Section 218 Agreement on behalf of a political subdivision, SSA will work with the State to effectuate that desired coverage.

Federal law and regulations provide a period within which an action is required for a number of situations (e.g., the date on which a Modification must be delivered). SSA considers the period of limitation to end at the close of the calendar day established by the underlying rule. If the period ends on a Saturday, Sunday, legal holiday, or any other Federal non-work day, action taken on the next Federal business day will be deemed to be within the time limitation.

NOTE SSA considers the close of the calendar day to occur at 12:00 am as determined by the State’s time zone, and in accordance with the relevant State’s rules relating to daylight saving time.