SL 30001.385 Termination of Coverage
Before enactment on April 20, 1983 of Public law 98-21, the1983 Social Security Amendments, a State's agreement could be terminated either in whole or for one or more absolute coverage groups. The termination could be initiated by either the State or the Secretary of Health and Human Services. Once an agreement was terminated for a coverage group, coverage could not be provided again for that group.
A. TERMINATION BY THE STATE
The State could terminate the agreement in whole or in part by giving at least 2 years advance notice in writing to SSA. The coverage must have been in effect at least 5 years before SSA receipt of the notice. This meant 5 years actual coverage from the effective date of the first coverage and not 5 years from the date of execution of the modification which provided the coverage. The 2-year period ran from the date the notice was mailed or delivered to SSA and not the date of receipt.
The termination could have applied to any absolute coverage group. For example, coverage for a proprietary function coverage group could have been terminated without terminating coverage for the governmental function coverage group. This could have been done even though the coverage groups were not separately identified when the coverage was provided. A retirement system coverage group was not a coverage group for termination purposes.
B. TERMINATION BY THE SECRETARY
The Secretary could have terminated an agreement in whole or in part if the State failed to comply or was no longer legally able to comply with the agreement. The State must have been given reasonable notice and opportunity for a hearing. The termination action must have been taken within 2 years of the notice of the intent to terminate unless the State was again in compliance with the terms of the agreement. Termination by the Secretary was generally limited to cases in which an entity had ceased to exist.
C. TERMINATION ON AND AFTER APRIL 20, 1983
The 1983 Social Security Amendments amended former Section 218(g) of the Act to provide that no coverage agreement may be terminated, either in its entirety or with respect to any coverage group, on or after April 20, 1983. The amendment applies to any agreement in effect on April 20, 1983, without regard to whether a notice of termination was in effect on that date, and to any agreement or modification thereof which became effective after that date. Any agreements not terminated before April 20, 1983, could not be terminated. This applies not only to voluntary terminations, but also to involuntary terminations for failure to comply with the agreement, including partial terminations in cases where an entity has been legally dissolved. States and interstate instrumentalities are permitted to cover groups whose coverage was previously terminated.