If police officer and/or firefighter positions were not covered by a retirement system at the time an entity obtained Social Security coverage under the State's Section 218 Agreement for all positions not covered by a retirement system, the police officer and firefighter positions are covered. Coverage obtained under a Section 218 Agreement continues even if these positions later come under a retirement system.

Employees in police officer or firefighter positions who are retirement system ineligibles cannot be covered as a part of, or as an addition to, the absolute coverage group.

Notwithstanding the above rule, Social Security regulations provide that if State law requires a State or political subdivision to have a retirement system, a retirement system is considered to be established even where no action has actually been taken to establish the system as required by law (see 20 C.F.R. § 404.1206). Therefore, where such laws have been enacted, the police officer and firefighter positions are considered covered by a retirement system, and those positions would not become covered as part of an absolute coverage group regardless of whether an entity actually established a retirement system in accordance with State law.

After August 15, 1994, all States were authorized to provide coverage for police officer and firefighter positions under a retirement system. A coverage group for police officer and firefighter positions established through a majority-vote referendum consists of all current and future employees in positions under the retirement system in which the referendum was held, including ineligibles. Those States and all interstate instrumentalities authorized to use divided-vote referendum procedures may do so for police officer and firefighter positions. If the divided-vote procedure is used, the retirement system coverage group consists of all members who chose coverage and future members except that “ineligibles” may not be covered as a part of such a group.

Notwithstanding Federal authorization to cover police officer and firefighter positions under a retirement system, State law must also authorize the State to cover those positions under the State’s Section 218 Agreement. The State must first review State statutes and its enabling act to see if existing language prohibits extending Social Security coverage under the Section 218 Agreement to police officer and firefighter positions under a retirement system. If this language exists, the State must remove it, which usually requires action by the State legislature. Once the legislature passes corrective legislation, or if there is no prohibitive language to correct, then the State must modify the language of the State’s Section 218 Agreement to permit coverage of police officer and firefighter positions already covered by a retirement system (see template in SL 40001.490, Exhibit 30). After all of these actions have been taken, the State may begin holding referendums and extending coverage to those positions.

Before holding the referendum, the State must decide what the retirement system will be for referendum and coverage purposes. In addition to the State’s option to designate a retirement system for purposes of a referendum (SL 30001.321A), the State has additional choices for covering police officers and firefighters. The state may designate the following groups as the designated retirement system:

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  The police positions only;

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  The firefighter positions only; or

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  The positions of police officers and firefighters.

Beginning January 2, 1968, all States were authorized to extend coverage to employees in firefighter positions under a retirement system provided the Governor (or a State official designated by the Governor) certified to the Social Security Administration (SSA) that extending Social Security coverage would improve the overall benefit protection of these employees. The firefighter positions had to be treated as a separate retirement system for purposes of the referendum and coverage, and the State was required to use majority-vote procedures regardless of whether it was authorized to use divided-vote procedures generally.

Following the referendum, the State was required to submit the Governor’s certification (specified above) alongside the Modification for coverage.

In addition to the general authority to cover firefighters noted above, 23 States were specifically authorized to cover both police officer and firefighter positions under a retirement system by statute. States that specifically were authorized to expand coverage to these positions, as listed below, were also permitted to use divided-vote procedures if authorized to do so by law (see SL 30001.331). The following States were authorized to expand coverage as of the date shown:

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  Alabama (8/30/57);

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  California (9/16/59);

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  Florida (8/1/56);

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  Georgia (8/30/57);

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  Hawaii (8/30/57);

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  Idaho (10/30/72);

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  Kansas (9/16/59);

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  Maine (10/24/62);

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  Maryland (8/30/57);

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  Mississippi (12/20/77);

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  Montana (12/31/74);

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  New York (8/30/57);

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  North Carolina (8/1/56);

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  North Dakota (9/16/59);

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  Oregon (8/1/56);

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  Puerto Rico (1/2/68);

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  South Carolina (8/1/56);

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  South Dakota (8/1/56);

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  Tennessee (8/30/57);

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  Texas (7/2/64);

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  Vermont (9/16/59);

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  Virginia (9/13/60);

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  Washington (8/28/58); and

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  Interstate Instrumentalities (8/28/58).