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Calpers Section 218 Agreement

In 1991, social security became mandatory for civil servants and local authorities, unless they are members of a qualified public pension scheme (sometimes referred to as a “social security replacement plan” or “replacement plan”) or if they are covered by a Section 218 agreement. In other words, an employee of a local government who does not have an agreement under Section 218 must be covered by social security, unless the employee participates in a replacement plan. Social security is available to public and local government staff through a single federal-federal agreement, approved in accordance with Section 218 of the Social Security Act. Workers covered by a Section 218 agreement have the same protection and benefits rights as workers who are required for Social Security and Medicare. The costs of implementing or amending section 218 agreements are due within 60 days of the process opening. The invoice can be accessed and paid via your agency`s myCalPERS account. The TCRs and unions recognize that a successful vote is in the interest of all workers. That is why we are committed to educating current staff about this. In addition to direct mailings to each current staff member, VTA will hold several virtual town hall meetings.

VTA will communicate regularly with staff via email, signs and newsletters, a new website on The Hub, an external website in www.vta.org/section-218, and will hold supervisory briefings. If necessary, VTA can also contact staff individually, either by phone or in person. The VTA is looking for other ways to maximize participation, for example. B the possibility of gettinging people by mail or in person before the election date. The AEV will continue to cooperate with trade unions in all these efforts. services provided by election officials and election officials paid less than the legal threshold for the calendar year; unless the section 218 agreement applies to election officials. If you are unsure if your agency has a voluntary agreement, email the SSSA or call 916-795-0810. Here is the “gotcha:” If an employee of a local government who does not have an agreement under Section 218 participates in a replacement plan, that employee cannot also participate in social security. This is a potentially very important problem, as there are dozens, if not hundreds, of local governments and instrumentalities in California in California, who do not have an agreement under Section 218, but who participate in Social Security on a “voluntary” basis. It is clear that they can do so as long as they do not provide replacement benefits to any of their FICA insured employees.

The problem is that most of them offer “unknowing” replacement plan type benefits. In this case, this can be done on the basis of staff-for-employee and salary to the other. As a result, affected workers cannot have employers or employees pay wage contributions on their behalf. In addition, these pay periods cannot be charged on workers` final social security benefits. Any public or local authority or school that has a voluntary agreement under Section 218 must pay the fee. These include public authorities, cities, counties, special districts, schools, colleges and universities. An agreement under Section 218 is a voluntary agreement between the state and the Social Security Administration (SSA), which provides coverage for Social Insurance and Hospital Insurance (MEDICARE) or Medicare HI-only for employees of the state and local authorities.