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218 Agreement Texas

In 1991, social security became mandatory for employees of public and local governments, unless they were members of a qualified public pension scheme (sometimes referred to as a “social replacement plan” or “replacement plan”) or were covered by a Section 218 agreement. In other words, a local government employee who does not have a Section 218 agreement must be covered by Social Security unless the employee participates in a replacement plan. All States, including the 50 States, Puerto Rico, the Virgin Islands and some sixty intergovernmental instruments, have concluded an agreement with SSA, in accordance with section 218. These agreements allow states, if they wish, to provide public employees with Medicare (HI) or Medicare HI-only social and hospital coverage. There are thousands of local agencies (cities, counties, special districts, school districts, JPAs) in California. This suddenly became so important because California`s Social Security Administrator recently began asking all governments and locals if they have a Section 218 agreement, if they participate in Social Security, and if they present a replacement plan. We think they might be shocked to know how many public institutions have been overtaken by their own “generosity.” Stay on the spot. Here is the “Gotcha”: If a local government employee who does not have an agreement under Section 218 participates in a replacement plan, that employee cannot also participate in Social Security. .

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