Basic (12-04)

SL 90004.001 Transmittal 1 to SL 40001 , December 2004

Part 19 – State and Local Coverage Handbook

Chapter 400 – Agreements and Modifications

Subchapter 01 – Agreements and Modifications

   

Audience

State Social Security Administrators

Regional Offices—RSI Team Leaders

Parallel Social Security Field Offices—District Managers

Regional General Counsel Staff

   

Originating Component

OISP/OEIE

   

Effective Date

Upon Receipt

   

Background

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 modification.

   

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 process.

   

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

Subsection F

   

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.