TN 9 (01-18)

A. Overview of a Section 218 Agreement

The Section 218 Agreement is a legal document, which incorporates the provisions, definitions, and conditions for coverage under the agreement as defined under Federal and State laws.

1. Authority of the agreement

The agreement provides the authority for

• covering employees of the State and its political entities.

• adopting optional exclusions to the extent permitted by Federal and State laws.

2. Content of the agreement

The agreement should include the following:

• Statewide provisions that apply may be included in the original agreement (or a later modification).

• The agreement includes a statement that the State will comply with SSA regulations for administering the agreement.

• It establishes the framework for the continuing relationship between the State and SSA.

• The agreement must specify if the State covers the services of individuals who are ineligible for membership in a retirement system only for the period in which they are ineligible.

• The agreement must specify the effective date and may provide different effective dates for different political subdivisions and coverage groups listed in the appendices.

B. Appendix

The original agreement should have an appendix that identifies the covered political subdivisions or coverage groups, and the extent of the coverage, i.e., effective date of coverage and optional exclusions. Where absolute coverage groups are included, the appendix shows whether all or only certain designated groups are included. Append at least one political subdivision or coverage group to an agreement.

C. Preparing an original agreement

The official designated by the State or interstate instrumentality to handle the Section 218 Agreement negotiates with the Regional Office (RO) on all matters related to the agreement. Since all States have entered into original agreements, the interstate instrumentalities should take the following actions.

• Submit two original modifications with the wet signature(s) of the designated official(s) to the RO in which the instrumentality’s principal office is located.

• Provide extra copies when the instrumentality wants more than one signed copy. The RO returns one executed copy to the instrumentality and retains the other original copy. The interstate instrumentality may submit a draft of the original agreement to the RO for preliminary review.

D. Regional Office review of original agreement

The RO Section 218 Specialist reviews the agreement to confirm

• the designated official has signature authority

• the instrumentality is not already covered under Section 218

• there is supporting documentation concerning the legal status of the instrumentality.

After review, forward the agreement and supporting documentation to the Office of General Counsel (OGC) for their review and legal clearance. After OGC’s legal clearance, hand carry the agreement to the Regional Commissioner or the Deputy Regional Commissioner for signature on behalf of the Commissioner of Social Security.