BASIC (12-03)

There are two ways members of a retirement system who voted “no” in a divided vote referendum can later obtain coverage.

A. SECOND CHANCE PROCEDURE

If State law permits, the State can offer members (including an optional-deemed member covered after December 31, 1969) of the “no” group a second chance to transfer to the “yes” group. Individual members who then want coverage must file a written request with the State. Members who voted “yes” for coverage and were covered under the agreement cannot transfer to the “no” group.

If the State elects to extend such an opportunity, the State must make it available to all similarly situated individuals. Under these procedures, an individual must file his written request for Social Security coverage with the State prior to the execution of the modification providing such coverage. Coverage can be extended under these procedures only to those members in an employment relationship on the date of execution of the modification (or the date designated in the modification to control who will be retroactively covered under the modification, i.e., the section 218(e)(2) date).

Under the second chance procedure, the State may specify a time period during which employees who initially voted “no” can request coverage. The closing date set by the State for exercising a choice must be prior to the execution of the second chance modification. The effective date of coverage and the exclusions applicable to the divided retirement system coverage group will also apply to members covered under the second chance procedure.

The second chance modification must be mailed or delivered within 2 years after the execution of the agreement or modification which initially extended coverage to the retirement system coverage group. (After this 2-year period, a majority vote referendum must be conducted.) If the modification is mailed by the State, the postmark will establish the date of mailing. If the State official-or an authorized individual personally deliver the modification to the Social Security office, this date will be the delivery date.

B. MAJORITY VOTE REFERENDUM

If a retirement system is covered under the divided vote referendum process, this retirement system cannot be further divided for referendum and coverage purposes. Therefore, members of the divided retirement system who voted “no” for coverage may be covered under the agreement if:

• a majority referendum is held among the “no” vote members of this same deemed system;

• a majority vote for coverage; and

• the same unit, e.g., single political subdivision, is used for referendum purposes.

If the referendum is favorable, all members (other than those the State may choose to optionally exclude) who originally voted “no,” ineligibles and the optionals are covered. (Only actual members of the deemed retirement system coverage group are permitted to vote in the majority referendum.) If a majority favor coverage, this is deemed a separate retirement system coverage group; and, therefore, the State may elect any effective date allowed under Federal and State laws.