If a retirement system, for referendum purposes, retained its identity as a single retirement system, then the Agreement covers all employees whose positions are brought under the retirement system after the Agreement is made applicable to that system. Coverage is automatic as of the date the positions are brought under the system and only an identification Modification should be submitted by the State to the Social Security Administration (SSA).

Example: A State conducted a referendum for a State retirement system, which covered State and political subdivisions employees, as a single retirement system. After a favorable referendum, coverage was extended to the retirement system coverage group composed of all employees in positions covered by the system. Subsequently, a new political subdivision was created and joined the retirement system. Since the retirement system retained its identity as a single retirement system, the employees of the new entity are members of the retirement system coverage group, and automatically covered under the Agreement. It is also possible to have automatic coverage for a deemed retirement system if the Modification clearly indicates that the deemed system will include future participants.

If a retirement system is divided into separate deemed retirement systems for referendum purposes, the coverage status of a new member in the retirement system depends on the composition of the deemed systems. If the deemed retirement system is fixed in its composition, i.e., as to the precise entities it includes, additional newly created political entities may be covered only upon compliance with the referendum procedures.

Example: Cities A, B and C, which participate in the State retirement system, were deemed separate retirement systems for referendum purposes. After coverage was extended to these cities, City D joined the retirement system. Employees of City D may be covered only after a favorable referendum is held.

If newly created or reclassified positions would have been part of the retirement system coverage group if they had existed when that group was covered, they are considered part of that coverage group. If the retirement system is abolished, newly created or reclassified positions or positions in a newly created political subdivision cannot be covered as a part of the retirement system coverage group.

If there were no police officer or firefighter positions in existence at the time the referendum was held but such positions are later created and placed under the retirement system, employees in such positions are not compulsorily covered. Coverage must be provided through the referendum procedures under the provisions of Section 218(l) of the Act. Likewise, positions that are reclassified as police officer or firefighter positions cease to be covered under the State’s Agreement until the State elects to cover them as provided by Section 218(l) of the Act.