Covered transportation service refers to work for public transportation systems which
is compulsorily covered under Section 210(k) of the Act and required to be excluded
from coverage under a Section 218 Agreement. The 1950 Social Security Amendments,
which provided coverage for employees of State and local governments, included special
coverage rules under Section 210(k) for employees of public transportation systems
acquired from private ownership and operated by these entities. These rules, which
are still in effect, provide mandatory Social Security coverage for work for public
transportation systems under certain conditions. Whether the services are covered
under Section 210(k) or may be covered under a Section 218 Agreement depends on the
date the system was acquired by the State or local government and whether the services
are covered by a general retirement system.
Section 218(c)(6)(C) of the Act requires transportation services covered under Section
210(k) to be excluded from coverage under a Section 218 Agreement. However, transportation
services also may be excluded from coverage under Section 210(a)(9) of the Act and
Section 3231 of the Internal Revenue Code, as amended, if services are performed by
a railroad employee as determined by the Railroad Retirement Board (RRB) for purposes
of the Railroad Retirement Act, or by IRS for purposes of the Railroad Retirement
Tax Act provisions of the Internal Revenue Code. Therefore, before a coverage determination
is made, it must first be ascertained if the RRB or IRS has made any prior related
determinations.