BASIC (02-08)

Part 19 – State and Local Coverage Handbook
Chapter 600 – Employment
Subchapter 01 – Employment

Audience
State Social Security Administrators
Regional Offices—RSI Team Leaders
Parallel Social Security Field Offices—District Managers
Regional General Counsel Staff

Originating Component

OISP/OEIE

Effective Date

Upon Receipt

Background

This transmittal provides procedure for proper handling of predecessor-successor situations, which includes the Social Security Administration's terms and definitions for the four categories of predecessor-successor situations (consolidation, annexation, hybrid consolidation, miscellaneous transition). It also includes the effects on the Social Security coverage status of successor entity employees, and procedure for extending Social Security coverage to successor entity employees

Summary of Changes

SL 60001.001 SLCH Subchapter 60001 - PDF File

Contains an inclusive printable document to Subchapter 60001.

SL 60001.680 Predecessor-Successor Situations

This new section describes predecessor-successor situations with definitions of the terminology SSA uses to describe what occurs in most predecessor-successor situations - consolidation, annexation, hybrid consolidation, miscellaneous transition etc.

SL 60001.681 How Social Security Coverage is Affected in Various Predecessor-Successor Situations

This new section outlines new modifications needed to provide Social Security coverage for the Single Retirement System, Deemed Retirement System and the Absolute Coverage Group.

SL 60001.682 Determining the Status of a Predecessor-Successor Situation and How Social Security Coverage is Affected

This new section discusses the varied documentation that can be used in determining the status of a predecessor-successor situation. Various predecessor-successor scenarios are also provided to familiarize the reader with the predecessor-successor process and how Social Security coverage is affected.

SL 60001.683 Application of the Continuing Employment Exception to Mandatory Medicare Coverage in Predecessor-Successor Situations

This new section discusses how an employee of a predecessor entity is viewed to be in continuing employment status when moved to the successor entity. If employment for the predecessor entity began before April 1, 1986, the employee is not subject to the mandatory Medicare provisions when he or she is moved to the successor entity. The legislative history and intent of the mandatory Medicare provisions is discussed and two landmark court cases are cited.