2023 Vermont Statutes › Title 3 - Executive › Chapter 19 - Social Security for State and Municipal Employees › § 573. Federal-State agreement; interstate instrumentalities

§ 573. Federal-State agreement; interstate instrumentalities
(a) The State agency, with the approval of the Governor, is hereby authorized to enter on behalf of the State into an agreement with the Secretary of Health and Human Services, consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal Old Age and Survivors Insurance System to employees of the State or any political subdivision thereof with respect to services specified in such agreement which constitute “employment” as defined in section 572 of this title. Such agreement may contain such provisions relating to coverage, benefits, contributions, effective date, modification, and termination of the agreement, administration, and other appropriate provisions as the State agency and Secretary of Health and Human Services shall agree upon, but, except as may be otherwise required by or under the Social Security Act as to the services to be covered, such agreement shall provide in effect that:
(1) Benefits will be provided for employees whose services are covered by the agreement and their dependents and survivors on the same basis as though such services constituted employment within the meaning of Title II of the Social Security Act;
(2) The State will pay to the Secretary of the Treasury, at such time or times as may be prescribed under the Social Security Act, contributions with respect to wages (as defined in section 572 of this title), equal to the sum of the taxes which would be imposed by the federal Insurance Contributions Act if the services covered by the agreement constituted employment within the meaning of that Act;
(3) Such agreement or any modification of such agreement shall be effective with respect to services in employment covered by the agreement or any modification of such agreement after the date specified therein in accordance with Section 218 of the Social Security Act;
(4) All services which constitute employment as defined in section 572 of this title and are performed in the employ of the State by employees of the State, shall be covered by the agreement;
(5) All services which (A) constitute employment as defined in section 572 of this title; (B) are performed in the employ of a political subdivision of the State; and (C) are covered by a plan which is in conformity with the terms of the agreement and has been approved by the State agency under section 575 of this title, shall be covered by the agreement;
(6) As modified, the agreement shall include all services described in either subdivision (4) or subdivision (5) of this subsection and performed by individuals to whom Section 218(c)(3)(C) of the Social Security Act is applicable, and shall provide that the service of any such individual shall not continue to be covered by the agreement in case he or she thereafter becomes eligible to be a member of a Retirement System except as provided by subdivision (7) hereof; and
(7) As modified, the agreement shall include all services described in either subdivision (4) or subdivision (5) of this subsection and performed by individuals in positions covered by a Retirement System with respect to which the Governor has issued a certificate to the Secretary of Health and Human Services pursuant to subsection 578(b) of this title.
(b) Any instrumentality jointly created by this State and any other state or states is hereby authorized, upon the granting of like authority by such other state or states, (1) to enter an agreement with the Secretary of Health and Human Services whereby the benefits of the federal Old Age and Survivors Insurance System shall be extended to employees of such instrumentality; (2) to require its employees to pay (and for that purpose to deduct from their wages) contributions equal to the amounts which they would be required to pay under subsection 574(a) of this title if they were covered by an agreement made pursuant to subsection (a) of this section; and (3) to make payments to the Secretary of the Treasury in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements. Such agreement shall, to the extent practicable, be consistent with the terms and provisions of subsection (a) and other provisions of this chapter. (Amended 1959, No. 204.)