The state administrator is responsible for maintaining Section 218 records permanently and securely. Destruction of original records is not authorized. In order to meet the records retention requirements, the state administrator shall:

• •

  Maintain the State’s original hardcopy file in a secure, waterproof, and fireproof environment. The hardcopy of the file shall include the State’s Section 218 Agreement, Modifications, dissolutions, and intrastate Agreements;

• •

  Maintain electronic or physical copies of each notice of a covered entity’s legal name change;

• •

  Maintain individual ballots from referendums for coverage (these documents may be stored in an electronic form as long as each individual ballot can be viewed, and the state administrator implements separate redundant secure storage to ensure no chance of accidental loss of the documents);

• •

  Maintain electronic and/or physical copies of letters and other forms of correspondence between the entities and the State, SSA, and IRS, that could affect coverage;

• •

  Consider implementing a redundant system to backup hardcopy files (e.g. an electronic database of scanned files);

  NOTE: 

  If the state administrator chooses not to retain physical copies of ballots from referendums, then the administrator MUST implement separate redundant secure backup files of the electronic records of those ballots. SSA does not store ballot information and cannot assist the administrator with recovering those necessary documents if they are lost or destroyed.

• •

  Routinely back up electronic files, and store the backup files in a separate and secure location away from the originals; and

• •

  Routinely evaluate electronic and hardcopy files to insure the integrity of the documents.

The state administrator must take appropriate steps to execute Modifications to the Agreement to include additional coverage groups, correct errors in coverage, or identify additional political subdivisions that join a covered retirement system (see generally SL 40001.420; SL 40001.425; SL 40001.445; SL 40001.450).

The state administrator must conduct referendums on the coverage of services of individuals in positions under a retirement system (see generally SL 30001.321; SL 30001.331).

The state administrator assists SSA with making determinations about which State and political subdivision employees’ positions are covered by approved Section 218 Agreements and Modifications. Additionally, the state administrator identifies new, merged, or dissolved political subdivisions, and takes the appropriate coverage related action.

The state administrator works with employers to guarantee proper Social Security and Medicare withholding and reporting.

The state administrator must give notice to SSA, when appropriate, of the following events:

• •

  State administrator changes—SSA regulations require each State to inform SSA of the name, title, and address of the designated official(s) and the extent of each official’s authority. When there are changes in designated officials or changes in their authority, the State should inform SSA timely. If there is a change in the state administrator, the outgoing state administrator should send a notice to the SSA regional office serving the state before leaving office and

• •

  Evidence of legal dissolution(s) of covered State or political subdivision entities (see SL 40001.425; SL 40001.485).

Communication is essential to performing the roles and responsibilities of the state administrator. However, to be effective, communication must flow clearly and consistently with all involved parties. This requires communication and interaction between the state administrator and every entity—including SSA, the IRS, and every reporting official for the State and its political subdivisions. State administrators should develop and maintain a communication plan. That plan may include contact with the following partners:

• •

  Other state administrators through the NCSSSA as needed and annually at the NCSSSA conference;

• •

  SSA regional offices as needed and at least quarterly;

• •

  IRS as needed and at least quarterly;

• •

  State and local governments as needed and at least quarterly;  

• •

  State’s political subdivisions (including those that do not have Section 218 Coverage Agreements) at least annually to secure current contact and mailing information including: current legal status, possible subdivision name changes, address changes, telephone and fax numbers, email address(es), and Federal Employer Identification Number(s) (EIN(s));

• •

  State government legislators and policy makers;

• •

  Public retirement systems; and

• •

  Oversight agencies, public employer associations, and other professional governmental associations as needed.

Additionally, the state administrators must collaborate with these parties at times to resolve issues. For example, state administrators should work with SSA and the IRS to address coverage and taxation questions related to the Agreement and any Modifications.

The state administrator should provide guidance to State and local government employers on issues related to Section 218 coverage.

The state administrator is responsible for providing regular education and outreach to State and political subdivision employers and employees on coverage and benefits issues. A successful education and outreach program may:

• •

  Identify State and political subdivision employers, and create employer profiles that can be easily accessed as a source of information;

• •

  Organize, conduct, or participate in joint educational outreach with SSA and IRS for the State’s governmental employers and employees;

• •

  Identify political subdivisions not covered by a Section 218 Agreement that provides retirement system coverage to their employees to ensure the subdivisions understand their obligations and responsibility under mandatory Social Security or mandatory Medicare laws and provisions;

• •

  Send periodic letters to State and political subdivision entities asking if their Social Security coverage and retirement system status has changed;

• •

  Provide information (via newsletters, articles, and presentations) to the State’s political subdivisions concerning requirements of Section 218;

• •

  Develop email or website material for online client information exchange;

• •

  Network with governmental and professional associations, participate in conference committees, and offer to coordinate conference presentations;

• •

  Compile a State-specific coverage and reporting manual for use by the State’s public employers;

• •

  Develop ongoing contact and act as a liaison with the State’s congressional delegation, legislative, and executive branch officials and staff; and

• •

  Monitor for State and local proposed legislation that could potentially affect the Social Security, Medicare, and retirement system coverage of government employees.

For Modifications requiring a closing agreement (see SL 40001.420J), the state administrator assists the relevant entities with completing a closing agreement with IRS. The state administrator should do this after the regional office Section 218 specialist (RO Specialist) notifies the state administrator that the Modification has been approved and that the IRS has been made aware of the need for a closing agreement. Once the closing agreement has been completed, the state administer should request a copy of the approved closing agreement from the entity, to be retained with the State’s copy of the Modification (see SL 40001.420J and SL 40001.425D). The state administrator should provide SSA with a copy of the approved closing agreement.

The state administrator is responsible for determining the level of support needed by its State and covered political subdivisions, pursuant to existing State statutes, and ascertaining the administrative costs for operating the Section 218 coverage program. The state administrator should make recommendations to the appropriate State authorities to ensure adequate funding to administer the State's coverage Agreements.

The state administrator is responsible for evaluating and maintaining staffing levels commensurate with Section 218 program objectives and activities. The state administrator position, as well as the duties and responsibilities associated with the position, are a mandatory responsibility of the State—as specified in SSA Regulations (see 20 C.F.R. § 404.1024). In order to determine the adequate staffing level for the state administrator position, the State should analyze the coverage needs of the State and its political subdivisions. Consider doing the following:

• •

  Identify goals and objectives that align with the roles and responsibilities of the state administrator position;

• •

  Identify the State’s political subdivisions (including those that do not have Section 218 coverage) and begin developing specifications for the type, numbers, and locations of employees;

• •

  Assess the current and the projected coverage needs of the State and political subdivision employees;

• •

  Identify the possible methods for meeting the coverage needs of State and political subdivision employees;

• •

  Determine the staffing requirements necessary to implement the ideas identified;

• •

  Develop a method for rating the effectiveness of staff and then monitor the effectiveness of current staffing levels; and

• •

  Staff the position to meet the Social Security coverage needs of State and political subdivision employees.

In addition, the state administrator should implement a comprehensive succession plan. Succession planning is the mitigating process of preparing for the loss of critical personnel in an organization. When developing a succession plan, begin with an assessment. The assessment should identify positions in which a vacancy would have the highest impact on administering Section 218 coverage for the State and its political subdivisions.

It is important that state administrators understand Federal and State law in order to identify coverage issues and work with SSA and IRS to resolve those issues. As a rule, Federal law governs determinations involving coverage of State and local government employees, while State laws govern issues involving the interpretation of functions of the State and its political subdivisions. SL 20001.220 provides further details on which issues Federal or State law control.

If it is unclear whether an issue requires a Federal or State determination, consider contacting the appropriate Social Security regional office. If additional guidance is needed, consider obtaining a legal opinion or other guidance from the State’s Office of the Attorney General.

The state administrator should develop a comprehensive program strategy for addressing the State’s Section 218 program goals. This strategy should:

• •

  Standardize and simplify Section 218 services;

• •

  Develop performance standards based on State and local government needs;

• •

  Apply technology to aggressively automate routine tasks, data maintenance, and client interface;

• •

  Create a task group to identify the Social Security needs of State and local government employees;

• •

  Develop an outreach strategy for participating in public events, providing training, and disseminating Social Security coverage materials for State and local employers and employees; and

• •

  Facilitate support for the State's Section 218 program from State legislators and executives.

The state administrator may request SSA send a letter to the State Governor advocating for the State Social Security Administrator position on a case-by-case basis to reinforce the ongoing services of the state administrators. The state administrator should direct the request to the SSA regional office servicing the State. The regional office retains the discretion to determine if sending a letter is appropriate following a request from the state administrator (see POMS SL 10001.140A).