Basic (12-03)

SL 40001.480 Termination of Section 218 Agreements

Prior to April 20, 1983 a State's coverage agreement under Section 218(g) of the Social Security Act could be terminated for State and local entities. These fell into three basic categories:

• Section 218(g) (1) voluntary terminations

• Section 218 (g)(2) involuntary terminations by the Secretary for failure to comply with the agreement

• Section 218 (g)(2) terminations when an entity dissolved (legally went out of existence). These were called PARTIAL TERMINATIONS, but since April 20,1983, they have been referred to as DISSOLUTIONS.

Effective April 20, 1983, Section 218(f) of the Act was amended to provide that no coverage agreement may be terminated, either in its entirety or with respect to any coverage group. This amendment prohibited the termination of Social Security coverage in effect on April 20, 1983, without regard to whether a notice of termination was in effect on that date, and also applies to any agreement or modification which would become effective after that date. Any terminations, which were not in effect prior to April 20, 1983, are legally prohibited. This applies not only to voluntary terminations, but also to involuntary terminations for failure to comply with the agreement.

In addition, the 1983 amendments allow States and interstate instrumentalities to modify their agreements to cover groups whose coverage was previously terminated. Once having again obtained coverage, coverage may not be terminated.