The Section 218 Agreement is a legal document, which incorporates the provisions, definitions, and conditions for coverage under the agreement as defined under Federal and State laws.

1. 1. 

   Authority of the agreement

The agreement provides the authority for

• •

  covering employees of the State and its political entities.

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  adopting optional exclusions to the extent permitted by Federal and State laws.

1. 2. 

   Content of the agreement

The agreement should include the following:

• •

  Statewide provisions that apply may be included in the original agreement (or a later modification).

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  The agreement includes a statement that the State will comply with SSA regulations for administering the agreement.

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  It establishes the framework for the continuing relationship between the State and SSA.

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  The agreement must specify if the State covers the services of individuals who are ineligible for membership in a retirement system only for the period in which they are ineligible.

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  The agreement must specify the effective date and may provide different effective dates for different political subdivisions and coverage groups listed in the appendices.

The original agreement should have an appendix that identifies the covered political subdivisions or coverage groups, and the extent of the coverage, i.e., effective date of coverage and optional exclusions. Where absolute coverage groups are included, the appendix shows whether all or only certain designated groups are included. Append at least one political subdivision or coverage group to an agreement.

The official designated by the interstate instrumentality to handle the Section 218 Agreement negotiates with the Section 218 specialist on all matters related to the agreement. Since all States have entered into original agreements, the following steps apply to interstate instrumentalities:

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  Submit two original agreements with a handwritten signature(s) of the designated official(s) to the Section 218 specialist.

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  Provide extra copies if the interstate instrumentality wants more than one signed copy. The Section 218 specialist returns one executed copy to the interstate instrumentality and retains the other original copy. The interstate instrumentality may submit a draft of the original agreement to the Section 218 specialist for preliminary review.

The Section 218 specialist reviews the agreement to confirm

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  the designated official has signature authority

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  the interstate instrumentality is not already covered under Section 218

• •

  there is supporting documentation concerning the legal status of the interstate instrumentality.

After review, forward the agreement and supporting documentation to Program, Fiscal, and Disclosure Law (PFDL) for their review and legal clearance. After PFDL’s legal clearance, forward the agreement to the delegated official for signature on behalf of the Commissioner of Social Security.

The concepts and procedures described in SL 40001.420 paragraphs E through I concerning correction, withdrawal, disapproval, execution, and effective date of modifications also apply to original agreements. Similarly, SL 40001.420.J, concerning closing agreements, also applies to an original agreement requesting more than three years of retroactive coverage.