Basic (12-03)

SL 30001.333 Divided Vote Referendum Process (Section 218(d)(7))




A State authorized to use the divided retirement system to extend coverage may use either of two voting procedures. Most States prefer to use the one-step procedure voting all eligible members and dividing the system into two parts on the basis of the member's choice. The State may also subdivide the retirement system into two parts or systems based on the members' choice, and then conduct a majority vote referendum among the employees who chose coverage.


The vote is a State matter, but certain minimum conditions must be met for a divided retirement system coverage group, in accordance with Section 218(d)(7) of the Act. The Governor (or an official designated by the Governor) must certify that the:

  • vote was held by written ballot (Federal law does not prescribe the ballot format or the voting mechanics.);

  • opportunity to vote was given to all individuals who were members when the vote was held;

  • employees who are members on the date of notice were given not less than 90 days notice;

  • vote was supervised by the Governor or a named designate;

  • retirement system was divided into two parts, one composed of the members who voted for coverage and the other composed of the remaining members who did not elect 218 coverage.




The form requirements described in SL 30001.323 are applicable.




An employee must occupy a position under the retirement system, i.e., be in a current employment relationship (as distinguished from actually performing services), and be a member of the retirement system at the time the system is divided. Under certain conditions individuals hired between the date of division and the date of execution of the modification covering the divided system may be given a choice regarding coverage.


If the retirement system was covered after December 31, 1959, a member includes an optional, i.e., an individual who has an option to join the retirement system, but has not done so.




Employees who are already covered under the agreement or who are mandatorily or optionally excluded from coverage are not eligible to vote.




The agreement or modification to extend coverage to the retirement system group must be executed within 2 years of the referendum. The 1-year time limitation for holding a new referendum after an unfavorable one also applies. The 1-year time limitation between referendums, applies only to a referendum for the same type of coverage for the same retirement system. This is based on the premise that the 1-year rule under that provision was designed to prevent immediate or repetitive referendums for the same type of voluntary coverage for the same retirement system.


To Link to this section - Use this URL:
SL 30001.333 - Divided Vote Referendum Process (Section 218(d)(7)) - 05/31/2012
Batch run: 05/31/2012