Beginning July 2, 1991, Section 11332 of Public Law 101-508 mandates Social Security
coverage for State and local government employees who are neither members of a qualified
retirement system nor covered by a Section 218 Agreement, unless coverage is specifically
excluded by law. The mandatory Social Security provisions apply to those State and
local employees who have the option to become members of the retirement system but
have chosen not to do so (optionals) as well as those employees who are personally
ineligible for membership in the retirement system (ineligibles).
Because voluntary coverage under a State’s Section 218 Agreement precludes application
of the mandatory provisions, always verify whether a position is covered under the
State’s Section 218 Agreement first before considering whether the individual employee
in that position is subject to mandatory Social Security coverage. If the employee’s
position is covered by the State’s Section 218 Agreement, then the employee is covered
regardless of possible participation in a qualified retirement system.
Section 226 of the Social Security Act (Act) provides Medicare Hospital Insurance
(HI) coverage automatically to individuals who have Social Security coverage.