SL 90004.001 Transmittal 1 to SL 40001 , December 2004
Part 19 – State and
Local Coverage Handbook
Chapter 400 – Agreements
Subchapter 01 – Agreements
State Social Security Administrators
Regional Offices—RSI Team Leaders
Parallel Social Security Field Offices—District Managers
Regional General Counsel Staff
This transmittal contains procedures that a political subdivision should follow in
notifying the Social Security Administration (SSA) and the Internal Revenue Service
(IRS) of the existence of a new component that is an integral part of that political
subdivision. The component is usually created by an existing political subdivision,
such as a city or county, which has previously covered its employees under a Section
218 Agreement. Unlike other integral parts in the political subdivision, this component
has its own payroll, bookkeeping, tax reporting system, EIN, etc. There is no need
for a new modification of the Section 218 Agreement, but still, SSA and IRS should
know that the new component is covered under the political subdivision’s existing
Summary of Changes
SL 40001.477 Reporting New Government Components
This section explains the process by which a political subdivision notifies SSA of
a new government component.
Subsection A explains the purpose for the establishment of the new government component
Subsection B sets forth the steps that must be followed by the political subdivision
and SSA in the notification process.
Subsection C describes the documentation that must be submitted to SSA for review
and approval in the notification process.
SL 40001.490 Modification Exhibits
The title has been changed to “Special Modifications and Notifications”.
A new Exhibit 24, “Notification of New Government Component to be Included Under Modification
No. _______” has been added.
Exhibit 24 – “Modification to Extend Medicare HI-Only Coverage (Majority Vote)” has
been renumbered to Exhibit 25 under subsection G.
Exhibit 25 – “Modification to Extend Medicare HI-Only Coverage (Divided Vote)” has
been renumbered to Exhibit 26 under subsection G.