Where the rehired annuitant was rehired into a divided-vote retirement system coverage
position (see Section 218(d)(6) and SL 30001.334), the rehired annuitant’s coverage status will depend on one of several scenarios:
-
•
The rehired annuitant is not allowed to join the retirement system (retirement system
ineligible);
-
•
The rehired annuitant rejoins the retirement system and his or her retirement system
membership continues from previous employment, or
-
•
The rehired annuitant is treated as a new member of the retirement system.
Often a rehired annuitant may not be allowed to rejoin the retirement system in his
or her current position because he or she already receives a pension from that retirement
system or is entitled to such a pension. When a rehired annuitant works under a position
covered by a retirement system but is prohibited from rejoining the retirement system,
he or she becomes a retirement system ineligible.
For divided-vote retirement system coverage groups, the State has the option to include
ineligibles in either deemed retirement system for purposes of coverage (see SL 30001.334A and SL 30001.340E). An ineligible rehired annuitant will not be covered under the State’s Section 218
Agreement if the State did not opt to include coverage for ineligibles. Where the
State includes coverage for retirement system ineligibles, the rehired annuitant will
have Social Security coverage unless his or her position falls within a required or
optional exclusion from the State’s Section 218 Agreement.
Where the rehired annuitant is not a retirement system ineligible, Section 218 coverage
status depends upon whether the rehired annuitant rejoins the retirement system or
becomes a new member of the system upon being rehired (see SL 30001.334F for more information on “new members”). Where the rehired annuitant is considered
a new member of the retirement system, the State's Agreement will cover him or her
unless the position falls within a required or optional exclusion from the State’s
Section 218 Agreement.
This issue comes into play most often when SSA is dealing with a rehired annuitant
who voted “No” (against Social Security Coverage) in a divided-vote referendum during
his or her pre-retirement employment in a position covered by the same retirement
system that covers the current position. Where the rehired annuitant is a “new” member
of the retirement system, the rehired annuitant will not retain his or her “No” vote
when being rehired into the new retirement system position. He or she will be placed
in the “Yes” group and will be covered for Social Security under the State’s Section
218 Agreement unless the position falls within a required or optional exclusion from
the State’s Section 218 Agreement.
As noted in SL 30001.334F.1, the State generally determines whether a retirement system member who has a break
in service after Social Security coverage was extended to the retirement system coverage
group is considered a new member upon return to employment covered by that same retirement
system. The State’s decision depends upon the provisions of the particular retirement
system involved and on State law.
If the State determines that the rehired annuitant’s retirement system membership
continues—that he or she is not a new member—despite the break in service, then SSA
must determine if the rehired annuitant retains his or her “No” vote. The rehired
annuitant retains his or her “No” vote if one of the following conditions are present:
-
•
The rehired annuitant returns to the same employer, or
-
•
The rehired annuitant is working for a different employer in the same Section 218
deemed retirement system coverage group as the former employer (see SL 30001.324B.2 for deemed retirement system coverage group explanation), or
-
•
The rehired annuitant is working for a different employer, but the retirement system
in question obtained Social Security coverage on a system-wide single retirement system
coverage group basis (see SL 30001.324B.1 for single retirement system coverage group explanation).
A rehired annuitant that retains his or her “No” vote is not covered for Social Security
under the State’s Section 218 Agreement. In the absence of voluntary coverage under
Section 218, it will be necessary to determine of mandatory coverage applies under
Section 210 and IRS rules, and whether the special rules for rehired annuitants exempts
the rehired annuitant from mandatory coverage.
If the current employer is in a different Section 218 deemed retirement system coverage
group from the pre-retirement employer, SSA would determine the rehired annuitant
for Section 218 coverage purposes to be a new member of that particular deemed retirement
system coverage group. The rehired annuitant does not retain his or her “No” vote,
and is covered along with all other new hires following a divided-vote referendum
(SL 30001.334). The State's Agreement will cover him or her unless the position falls within a
required or optional exclusion from the State’s Section 218 Agreement. This would
apply despite the fact that the rehired annuitant’s retirement system membership remained
continuous from pre-retirement employment through current employment.
There will be cases where the rehired annuitant was part of the “Yes” group in his
or her pre-retirement employment and is rehired into a position covered under the
same retirement system and under the State’s Section 218 Agreement. In those situations,
the rehired annuitant will go into the “Yes” group of the current employer’s Section
218 coverage group and have Social Security coverage, whether the State determines
their membership in the retirement system to be continuous or not.
There may be situations where the rehired annuitant is rehired into a position that
is covered under a different retirement system than the one his or her pension is
coming from, and the position is also covered for Social Security under the State’s
Section 218 Agreement following a divided-vote referendum. When this occurs, the rehired
annuitant is truly a new member of the retirement system and will have Social Security
coverage as part of the “Yes” group unless the position falls within a required or
optional exclusion from the State’s Section 218 Agreement.