BASIC (12-03)

SL 30001.324 Composition of Majority Vote Retirement System

 

The retirement system coverage group includes the following classes of employees.

 

A. CURRENT EMPLOYEES

 

All employees not previously covered who are in positions under the retirement system on the date of execution of the modification or the date designated to control who will have retroactive coverage under that modification (the "applicable" date in accordance with Section 218(e)(2) of the Act). This includes all current members, regardless of how they voted in the referendum, the ineligibles and optionals. Services or positions mandatorily or optionally excluded from coverage are not part of the retirement system and, therefore, are not included in the retirement system coverage group.

 

B. FUTURE EMPLOYEES

 

All employees in positions brought under the retirement system in the future. The “retirement system” means the grouping that constituted the retirement system for the referendum. It means the actual or entire retirement system only if the entire system was voted as a single retirement system in a referendum.

 

1. Retirement System Deemed a Single Retirement System

 

If a retirement system for referendum purposes retained its identity as a single retirement system, all employees whose positions are brought under the retirement system after the agreement is made applicable to that system are covered. Coverage is automatic as of the date the positions are brought under the system and only an identification modification should be submitted by the State to SSA.

 

Example: A State conducted a referendum for a State retirement system, which covered State and political subdivisions employees, as a single retirement system. After a favorable referendum, coverage was extended to the retirement system coverage group composed of all employees in positions covered by the system. Subsequently, a new political subdivision was created and joined the retirement system. Since the retirement system retained its identity as a single retirement system, the employees of the new entity are members of the retirement system coverage group, and automatically covered under the agreement. It is also possible to have automatic coverage for a deemed retirement system if the modification clearly indicates that the deemed system will include future participants.

 

2. Retirement System Deemed Separate Retirement Systems

 

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.

 

C. OTHER EMPLOYEES

 

This includes all employees who are in positions that were excluded from coverage because they were under a retirement system when coverage was extended to their absolute coverage group, but whose positions were subsequently removed from the system. The employees in these positions are part of the retirement system coverage group. Employees whose positions were removed from coverage under the retirement system by action taken by a State or political subdivision before September 1, 1954, could be covered as an absolute coverage group.

 


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/1930001324
SL 30001.324 - Composition of Majority Vote Retirement System - 12/18/2003
Batch run: 01/27/2009
Rev:12/18/2003