If a retirement system is divided into separate deemed retirement systems for referendum
purposes, the coverage status of a new member in the retirement system depends on
the composition of the deemed systems. If the deemed retirement system is fixed in
its composition, i.e., as to the precise entities it includes, additional newly created
political entities may be covered only upon compliance with the referendum procedures.
Example: Cities A, B and C, which participate in the State retirement system, were deemed
separate retirement systems for referendum purposes. After coverage was extended to
these cities, City D joined the retirement system. Employees of City D may be covered
only after a favorable referendum is held.