The 1954 Social Security amendments authorized coverage for employees in positions
under a retirement system effective January 1, 1955 and prescribed the mechanics for
accomplishing such coverage. Congress included the following statement of policy in
the Federal law (Section 218(d)(2)):
“It is hereby declared to be the policy of the Congress in enacting the succeeding
paragraphs of this subsection that the protection afforded employees in positions
covered by a retirement system on the date an Agreement under this section is made
applicable to service performed in such positions, or receiving periodic benefits
under such retirement system at such time, will not be impaired as a result of making
the Agreement so applicable or as a result of legislative enactment in anticipation
thereof.”
State legislation must authorize the State to cover retirement system positions.
A few States established coverage for retirement system positions before 1955 by receiving
specific authority to do so, or by liquidating their retirement systems in order to
establish absolute coverage groups and then creating new replacement retirement systems.