TN 24 (11-09)

Citations: Soc. Sec. Act, Sec. 210 (a) (7) (F)

A. Rules of mandatory coverage for state and local employees

Section 11332 of Public Law 101-508, the Omnibus Budget Reconciliation Act (OBRA), enacted on November 5, 1990 to provide full Social Security coverage to state and local employees, who were not previously covered under a qualifying retirement system and whose services are not already covered under an Agreement, for services performed after July 1, 1991.

1. Employees who are covered by mandatory coverage

Services performed by state and political subdivision employees who are not members of a retirement system are mandatorily covered under Social Security, including services by employees who:

• Perform services in a position which is under a retirement system, but are not actual members of the retirement system;

• Have the option to join the retirement system but have chosen not to do so; or

• Are personally ineligible for membership in the system.

2. Services excluded from mandatory coverage

In addition to the mandatory exclusions from the definition of covered employment under Section 210 of the Act, excluded are services performed:

• by individuals hired to be relieved from unemployment (This does not include many programs financed from Federal funds where the primary purpose is to give the employee work experience or training),

• in a hospital, home, or other institution by a patient or inmate thereof as an employee of a state or local government employer;

• by an employee on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency;

• by non-resident aliens with F-1, J-1, M-1 and Q-1 visas;

• in positions compensated solely by fees that are subject to Self-Employment Contributions Act (SECA), unless Section 218 Agreement covers these services;

• by a student enrolled and regularly attending classes at the school, college or university where they are working, unless Section 218 Agreement covers student services;

• by an election worker or official whose pay in a calendar year is less than the amount mandated by law, unless a Section 218 Agreement covers election workers. To find the coverage status of election workers for each state, click Election Worker Coverage chart ; and

• that would be excluded if performed for a private employer because it is not work defined as employment under Section 210(a) of the Social Security Act, unless a Section 218 Agreement covers certain agricultural services.