SL 60001.675 Intergovernmental Personnel Act of 1970
Effective January 5, 1971, the Intergovernmental Personnel Act (IPA) of 1970, Public Law 91-648, permits the temporary assignment of personnel back and forth between Federal agencies, State and local governments, Indian tribes or tribal organizations, institutions of higher education and other eligible organizations. Assignments are for specific work beneficial to both the State, local government, Indian tribe, or other eligible organizations and the Federal agency concerned. An assignment agreement may not exceed 2 years but can be extended for 2 additional years without loss of employee rights and benefits.
An employee assigned under the IPA continues the retirement coverage he or she had prior to the intergovernmental transfer. State and local government employees covered under a Section 218 Agreement immediately before the detail or appointment to the Federal government position continue to be covered under that agreement.
A State or local government employee appointed to a position in a Federal agency is carried by the State or local government on leave without pay status and is paid by the Federal agency. The employee is not covered for Social Security by virtue of the Federal service, however, and wages paid are not reported by the Federal agency. If a State or local government employee is appointed to a Federal agency and there is a problem in reporting the wages paid, the State or local government should contact the Federal agency and the employee to make arrangements to ensure correct reporting procedures are implemented. If the State or local government is given sufficient wage information and is reimbursed the total Social Security taxes due, then the State or local government can include those wages paid in its reports, if the employee's services for the State or local government were covered under a Section 218 Agreement or the mandatory Social Security coverage provisions.
A Federal employee detailed or appointed to a State position is not covered under the State’s Section 218 Agreement even though the employee serves in a position covered by the agreement. The employee continues the Federal coverage he or she had immediately prior to the transfer, i.e., Federal retirement system or Social Security coverage as a Federal employee.