SL 40001.445 Modification to Cover Ineligibles
If a State wishes to extend Social Security coverage to ineligibles of a retirement system, the State may cover them as part of the absolute coverage group or as part of the retirement system coverage group. The State must decide at the time of extending coverage to the ineligibles whether coverage will cease or continue if the ineligibles later become eligible for membership in the retirement system. This must be stated in the modification.
A. COVERAGE FOR INELIGIBLES CONTINUES
If the State decides to continue the coverage of ineligibles the following language should be used in the modification:
“It is further agreed that the services of an ineligible employee shall continue to be covered by said agreement if, after the effective date specified herein, he or she becomes eligible to be a member of the (Insert exact full name of retirement system).”
B. COVERAGE FOR INELIGIBLES CEASES
If the State decides coverage of ineligibles will cease if they later become eligible for membership in the retirement system, the following language should be used in the modification:
“It is further agreed that the services of any ineligible employee referred to in this modification shall not be covered by this agreement on or after the date he or she becomes eligible to be a member of the (insert exact full name of retirement system) but only if prior to such date the services performed by employees in positions covered by the retirement system in which the employee is ineligible for membership are not covered by this agreement.”
If the State chooses to cease the coverage of services of ineligibles when they become eligible for membership in the retirement system, the State may do so on a statewide basis in the basic agreement.