Under a Section 218 Agreement, a State has the option to exclude certain services
from coverage. If the Agreement does not specifically exclude these services, they
are covered. Beginning after July 1, 1991, mandatory coverage may apply to services
that were excluded optionally by the State, unless the service is excluded from mandatory
coverage by law (SL 50001.501D). As with all mandatory coverage, an employee in one of these excluded positions
will be covered mandatorily unless the employee participates in a qualified retirement
system.
Example: A City’s Section 218 Agreement excludes part-time positions that require less than
20 hours of work per week. The City’s cafeteria has part-time employees who work part-time
15 hours per week. The City’s retirement system membership is only for employees who
work in full-time positions. Therefore, part-time employees of the cafeteria are subject
to mandatory Social Security and Medicare.