
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC418]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
  SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE 
                                BENEFITS
 
Sec. 418. Voluntary agreements for coverage of State and local 
        employees
        

(a) Purpose of agreement

    (1) The Commissioner of Social Security shall, at the request of any 
State, enter into an agreement with such State for the purpose of 
extending the insurance system established by this subchapter to 
services performed by individuals as employees of such State or any 
political subdivision thereof. Each such agreement shall contain such 
provisions, not inconsistent with the provisions of this section, as the 
State may request.
    (2) Notwithstanding section 410(a) of this title, for the purposes 
of this subchapter the term ``employment'' includes any service included 
under an agreement entered into under this section.

(b) Definitions

    For the purposes of this section--
        (1) The term ``State'' does not include the District of 
    Columbia, Guam, or American Samoa.
        (2) The term ``political subdivision'' includes an 
    instrumentality of (A) a State, (B) one or more political 
    subdivisions of a State, or (C) a State and one or more of its 
    political subdivisions.
        (3) The term ``employee'' includes an officer of a State or 
    political subdivision.
        (4) The term ``retirement system'' means a pension, annuity, 
    retirement, or similar fund or system established by a State or by a 
    political subdivision thereof.
        (5) The term ``coverage group'' means (A) employees of the State 
    other than those engaged in performing service in connection with a 
    proprietary function; (B) employees of a political subdivision of a 
    State other than those engaged in performing service in connection 
    with a proprietary function; (C) employees of a State engaged in 
    performing service in connection with a single proprietary function; 
    or (D) employees of a political subdivision of a State engaged in 
    performing service in connection with a single proprietary function. 
    If under the preceding sentence an employee would be included in 
    more than one coverage group by reason of the fact that he performs 
    service in connection with two or more proprietary functions or in 
    connection with both a proprietary function and a nonproprietary 
    function, he shall be included in only one such coverage group. The 
    determination of the coverage group in which such employee shall be 
    included shall be made in such manner as may be specified in the 
    agreement. Persons employed under section 709 of title 32, who 
    elected under section 6 of the National Guard Technicians Act of 
    1968 to remain covered by an employee retirement system of, or plan 
    sponsored by, a State or the Commonwealth of Puerto Rico, shall, for 
    the purposes of this chapter, be employees of the State or the 
    Commonwealth of Puerto Rico and (notwithstanding the preceding 
    provisions of this paragraph), shall be deemed to be a separate 
    coverage group. For purposes of this section, individuals employed 
    pursuant to an agreement, entered into pursuant to section 1624 of 
    title 7 or section 499n of title 7, between a State and the United 
    States Department of Agriculture to perform services as inspectors 
    of agricultural products may be deemed, at the option of the State, 
    to be employees of the State and (notwithstanding the preceding 
    provisions of this paragraph) shall be deemed to be a separate 
    coverage group.

(c) Services covered

    (1) An agreement under this section shall be applicable to any one 
or more coverage groups designated by the State.
    (2) In the case of each coverage group to which the agreement 
applies, the agreement must include all services (other than services 
excluded by or pursuant to subsection (d) or paragraph (3), (5), or (6) 
of this subsection) performed by individuals as members of such group.
    (3) Such agreement shall, if the State requests it, exclude (in the 
case of any coverage group) any one or more of the following:
        (A) All services in any class or classes of (i) elective 
    positions, (ii) part-time positions, or (iii) positions the 
    compensation for which is on a fee basis;
        (B) All services performed by individuals as members of a 
    coverage group in positions covered by a retirement system on the 
    date such agreement is made applicable to such coverage group, but 
    only in the case of individuals who, on such date (or, if later, the 
    date on which they first occupy such positions), are not eligible to 
    become members of such system and whose services in such positions 
    have not already been included under such agreement pursuant to 
    subsection (d)(3) of this section.

    (4) The Commissioner of Social Security shall, at the request of any 
State, modify the agreement with such State so as to (A) include any 
coverage group to which the agreement did not previously apply, or (B) 
include, in the case of any coverage group to which the agreement 
applies, services previously excluded from the agreement; but the 
agreement as so modified may not be inconsistent with the provisions of 
this section applicable in the case of an original agreement with a 
State. A modification of an agreement pursuant to clause (B) of the 
preceding sentence may apply to individuals to whom paragraph (3)(B) of 
this subsection is applicable (whether or not the previous exclusion of 
the service of such individuals was pursuant to such paragraph), but 
only if such individuals are, on the effective date specified in such 
modification, ineligible to be members of any retirement system or if 
the modification with respect to such individuals is pursuant to 
subsection (d)(3) of this section.
    (5) Such agreement shall, if the State requests it, exclude (in the 
case of any coverage group) any agricultural labor, or service performed 
by a student, designated by the State. This paragraph shall apply only 
with respect to service which is excluded from employment by any 
provision of section 410(a) of this title other than paragraph (7) of 
such section and service the remuneration for which is excluded from 
wages by subparagraph (B) of section 409(a)(7) of this title.
    (6) Such agreement shall exclude--
        (A) service performed by an individual who is employed to 
    relieve him from unemployment,
        (B) service performed in a hospital, home, or other institution 
    by a patient or inmate thereof,
        (C) covered transportation service (as determined under section 
    410(k) of this title),
        (D) service (other than agricultural labor or service performed 
    by a student) which is excluded from employment by any provision of 
    section 410(a) of this title other than paragraph (7) of such 
    section,
        (E) service performed by an individual as an employee serving on 
    a temporary basis in case of fire, storm, snow, earthquake, flood, 
    or other similar emergency, and
        (F) service described in section 410(a)(7)(F) of this title 
    which is included as ``employment'' under section 410(a) of this 
    title.

    (7) No agreement may be made applicable (either in the original 
agreement or by any modification thereof) to service performed by any 
individual to whom paragraph (3)(B) of this subsection is applicable 
unless such agreement provides (in the case of each coverage group 
involved) either that the service of any individual to whom such 
paragraph is applicable and who is a member of such coverage group shall 
continue to be covered by such agreement in case he thereafter becomes 
eligible to be a member of a retirement system, or that such service 
shall cease to be so covered when he becomes eligible to be a member of 
such a system (but only if the agreement is not already applicable to 
such system pursuant to subsection (d)(3) of this section), whichever 
may be desired by the State.
    (8)(A) Notwithstanding any other provision of this section, the 
agreement with any State entered into under this section may at the 
option of the State be modified at any time to exclude service performed 
by election officials or election workers if the remuneration paid in a 
calendar year for such service is less than $1,000 with respect to 
service performed during any calendar year commencing on or after 
January 1, 1995, ending on or before December 31, 1999, and the adjusted 
amount determined under subparagraph (B) for any calendar year 
commencing on or after January 1, 2000, with respect to service 
performed during such calendar year. Any modification of an agreement 
pursuant to this paragraph shall be effective with respect to services 
performed in and after the calendar year in which the modification is 
mailed or delivered by other means to the Commissioner of Social 
Security.
    (B) For each year after 1999, the Commissioner of Social Security 
shall adjust the amount referred to in subparagraph (A) at the same time 
and in the same manner as is provided under section 415(a)(1)(B)(ii) of 
this title with respect to the amounts referred to in section 
415(a)(1)(B)(i) of this title, except that--
        (i) for purposes of this subparagraph, 1997 shall be substituted 
    for the calendar year referred to in section 415(a)(1)(B)(ii)(II) of 
    this title, and
        (ii) such amount as so adjusted, if not a multiple of $100, 
    shall be rounded to the next higher multiple of $100 where such 
    amount is a multiple of $50 and to the nearest multiple of $100 in 
    any other case.

The Commissioner of Social Security shall determine and publish in the 
Federal Register each adjusted amount determined under this subparagraph 
not later than November 1 preceding the year for which the adjustment is 
made.

(d) Positions covered by retirement systems

    (1) No agreement with any State may be made applicable (either in 
the original agreement or by any modification thereof) to any service 
performed by employees as members of any coverage group in positions 
covered by a retirement system either (A) on the date such agreement is 
made applicable to such coverage group, or (B) on September 1, 1954 
(except in the case of positions which are, by reason of action by such 
State or political subdivision thereof, as may be appropriate, taken 
prior to September 1, 1954, no longer covered by a retirement system on 
the date referred to in clause (A), and except in the case of positions 
excluded by paragraph (5)(A) of this subsection). The preceding sentence 
shall not be applicable to any service performed by an employee as a 
member of any coverage group in a position (other than a position 
excluded by paragraph (5)(A) of this subsection) covered by a retirement 
system on the date an agreement is made applicable to such coverage 
group if, on such date (or, if later, the date on which such individual 
first occupies such position), such individual is ineligible to be a 
member of such system.
    (2) It is declared to be the policy of the Congress in enacting the 
succeeding paragraphs of this subsection that the protection afforded 
employees in positions covered by a retirement system on the date an 
agreement under this section is made applicable to service performed in 
such positions, or receiving periodic benefits under such retirement 
system at such time, will not be impaired as a result of making the 
agreement so applicable or as a result of legislative enactment in 
anticipation thereof.
    (3) Notwithstanding paragraph (1) of this subsection, an agreement 
with a State may be made applicable (either in the original agreement or 
by any modification thereof) to service performed by employees in 
positions covered by a retirement system (including positions specified 
in paragraph (4) of this subsection but not including positions excluded 
by or pursuant to paragraph (5)), if the governor of the State, or an 
official of the State designated by him for the purpose, certifies to 
the Commissioner of Social Security that the following conditions have 
been met:
        (A) A referendum by secret written ballot was held on the 
    question of whether service in positions covered by such retirement 
    system should be excluded from or included under an agreement under 
    this section;
        (B) An opportunity to vote in such referendum was given (and was 
    limited) to eligible employees;
        (C) Not less than ninety days' notice of such referendum was 
    given to all such employees;
        (D) Such referendum was conducted under the supervision of the 
    governor or an agency or individual designated by him; and
        (E) A majority of the eligible employees voted in favor of 
    including service in such positions under an agreement under this 
    section.

An employee shall be deemed an ``eligible employee'' for purposes of any 
referendum with respect to any retirement system if, at the time such 
referendum was held, he was in a position covered by such retirement 
system and was a member of such system, and if he was in such a position 
at the time notice of such referendum was given as required by clause 
(C) of the preceding sentence; except that he shall not be deemed an 
``eligible employee'' if, at the time the referendum was held, he was in 
a position to which the State agreement already applied, or if he was in 
a position excluded by or pursuant to paragraph (5). No referendum with 
respect to a retirement system shall be valid for purposes of this 
paragraph unless held within the two-year period which ends on the date 
of execution of the agreement or modification which extends the 
insurance system established by this subchapter to such retirement 
system, nor shall any referendum with respect to a retirement system be 
valid for purposes of this paragraph if held less than one year after 
the last previous referendum held with respect to such retirement 
system.
    (4) For the purposes of subsection (c) of this section, the 
following employees shall be deemed to be a separate coverage group--
        (A) all employees in positions which were covered by the same 
    retirement system on the date the agreement was made applicable to 
    such system (other than employees to whose services the agreement 
    already applied on such date);
        (B) all employees in positions which became covered by such 
    system at any time after such date; and
        (C) all employees in positions which were covered by such system 
    at any time before such date and to whose services the insurance 
    system established by this subchapter has not been extended before 
    such date because the positions were covered by such retirement 
    system (including employees to whose services the agreement was not 
    applicable on such date because such services were excluded pursuant 
    to subsection (c)(3)(B) of this section).

    (5)(A) Nothing in paragraph (3) of this subsection shall authorize 
the extension of the insurance system established by this subchapter to 
service in any policeman's or fireman's position.
    (B) At the request of the State, any class or classes of positions 
covered by a retirement system which may be excluded from the agreement 
pursuant to paragraph (3) or (5) of subsection (c) of this section, and 
to which the agreement does not already apply, may be excluded from the 
agreement at the time it is made applicable to such retirement system; 
except that, notwithstanding the provisions of paragraph (3)(B) of such 
subsection, such exclusion may not include any services to which such 
paragraph (3)(B) is applicable. In the case of any such exclusion, each 
such class so excluded shall, for purposes of this subsection, 
constitute a separate retirement system in case of any modification of 
the agreement thereafter agreed to.
    (6)(A) If a retirement system covers positions of employees of the 
State and positions of employees of one or more political subdivisions 
of the State, or covers positions of employees of two or more political 
subdivisions of the State, then, for purposes of the preceding 
paragraphs of this subsection, there shall, if the State so desires, be 
deemed to be a separate retirement system with respect to any one or 
more of the political subdivisions concerned and, where the retirement 
system covers positions of employees of the State, a separate retirement 
system with respect to the State or with respect to the State and any 
one or more of the political subdivisions concerned. Where a retirement 
system covering positions of employees of a State and positions of 
employees of one or more political subdivisions of the State, or 
covering positions of employees of two or more political subdivisions of 
the State, is not divided into separate retirement systems pursuant to 
the preceding sentence or pursuant to subparagraph (C), then the State 
may, for purposes of subsection (e) of this section only, deem the 
system to be a separate retirement system with respect to any one or 
more of the political subdivisions concerned and, where the retirement 
system covers positions of employees of the State, a separate retirement 
system with respect to the State or with respect to the State and any 
one or more of the political subdivisions concerned.
    (B) If a retirement system covers positions of employees of one or 
more institutions of higher learning, then, for purposes of such 
preceding paragraphs there shall, if the State so desires, be deemed to 
be a separate retirement system for the employees of each such 
institution of higher learning. For the purposes of this subparagraph, 
the term ``institutions of higher learning'' includes junior colleges 
and teachers colleges. If a retirement system covers positions of 
employees of a hospital which is an integral part of a political 
subdivision, then, for purposes of the preceding paragraphs there shall, 
if the State so desires, be deemed to be a separate retirement system 
for the employees of such hospital.
    (C) For the purposes of this subsection, any retirement system 
established by the State of Alaska, California, Connecticut, Florida, 
Georgia, Illinois, Massachusetts, Minnesota, Nevada, New Jersey, New 
Mexico, New York, North Dakota, Pennsylvania, Rhode Island, Tennessee, 
Texas, Vermont, Washington, Wisconsin, or Hawaii, or any political 
subdivision of any such State, which, on, before, or after August 1, 
1956, is divided into two divisions or parts, one of which is composed 
of positions of members of such system who desire coverage under an 
agreement under this section and the other of which is composed of 
positions of members of such system who do not desire such coverage, 
shall, if the State so desires and if it is provided that there shall be 
included in such division or part composed of members desiring such 
coverage the positions of individuals who become members of such system 
after such coverage is extended, be deemed to be a separate retirement 
system with respect to each such division or part. If, in the case of a 
separate retirement system which is deemed to exist by reason of 
subparagraph (A) and which has been divided into two divisions or parts 
pursuant to the first sentence of this subparagraph, individuals become 
members of such system by reason of action taken by a political 
subdivision after coverage under an agreement under this section has 
been extended to the division or part thereof composed of positions of 
individuals who desire such coverage, the positions of such individuals 
who become members of such retirement system by reason of the action so 
taken shall be included in the division or part of such system composed 
of positions of members who do not desire such coverage if (i) such 
individuals, on the day before becoming such members, were in the 
division or part of another separate retirement system (deemed to exist 
by reason of subparagraph (A)) composed of positions of members of such 
system who do not desire coverage under an agreement under this section, 
and (ii) all of the positions in the separate retirement system of which 
such individuals so become members and all of the positions in the 
separate retirement system referred to in clause (i) would have been 
covered by a single retirement system if the State had not taken action 
to provide for separate retirement systems under this paragraph.
    (D)(i) The position of any individual which is covered by any 
retirement system to which subparagraph (C) is applicable shall, if such 
individual is ineligible to become a member of such system on August 1, 
1956, or, if later, the day he first occupies such position, be deemed 
to be covered by the separate retirement system consisting of the 
positions of members of the division or part who do not desire coverage 
under the insurance system established under this subchapter.
    (ii) Notwithstanding clause (i), the State may, pursuant to 
subsection (c)(4)(B) of this section and subject to the conditions of 
continuation or termination of coverage provided for in subsection 
(c)(7) of this section, modify its agreement under this section to 
include services performed by all individuals described in clause (i) 
other than those individuals to whose services the agreement already 
applies. Such individuals shall be deemed (on and after the effective 
date of the modification) to be in positions covered by the separate 
retirement system consisting of the positions of members of the division 
or part who desire coverage under the insurance system established under 
this subchapter.
    (E) An individual who is in a position covered by a retirement 
system to which subparagraph (C) is applicable and who is not a member 
of such system but is eligible to become a member thereof shall, for 
purposes of this subsection (other than paragraph (8) of this 
subsection), be regarded as a member of such system; except that, in the 
case of any retirement system a division or part of which is covered 
under the agreement (either in the original agreement or by a 
modification thereof), which coverage is agreed to prior to 1960, the 
preceding provisions of this subparagraph shall apply only if the State 
so requests and any such individual referred to in such preceding 
provisions shall, if the State so requests, be treated, after division 
of the retirement system pursuant to such subparagraph (C), the same as 
individuals in positions referred to in subparagraph (F).
    (F) In the case of any retirement system divided pursuant to 
subparagraph (C), the position of any member of the division or part 
composed of positions of members who do not desire coverage may be 
transferred to the separate retirement system composed of positions of 
members who desire such coverage if it is so provided in a modification 
of such agreement which is mailed, or delivered by other means, to the 
Commissioner of Social Security prior to 1970 or, if later, the 
expiration of two years after the date on which such agreement, or the 
modification thereof making the agreement applicable to such separate 
retirement system, as the case may be, is agreed to, but only if, prior 
to such modification or such later modification, as the case may be, the 
individual occupying such position files with the State a written 
request for such transfer. Notwithstanding subsection (e)(1) of this 
section, any such modification or later modification, providing for the 
transfer of additional positions within a retirement system previously 
divided pursuant to subparagraph (C) to the separate retirement system 
composed of positions of members who desire coverage, shall be effective 
with respect to services performed after the same effective date as that 
which was specified in the case of such previous division.
    (G) For the purposes of this subsection, in the case of any 
retirement system of the State of Florida, Georgia, Minnesota, North 
Dakota, Pennsylvania, Washington, or Hawaii which covers positions of 
employees of such State who are compensated in whole or in part from 
grants made to such State under subchapter III of this chapter, there 
shall be deemed to be, if such State so desires, a separate retirement 
system with respect to any of the following:
        (i) the positions of such employees;
        (ii) the positions of all employees of such State covered by 
    such retirement system who are employed in the department of such 
    State in which the employees referred to in clause (i) are employed; 
    or
        (iii) employees of such State covered by such retirement system 
    who are employed in such department of such State in positions 
    others than those referred to in clause (i).

    (7) The certification by the governor (or an official of the State 
designated by him for the purpose) required under paragraph (3) of this 
subsection shall be deemed to have been made, in the case of a division 
or part (created under subparagraph (C) of paragraph (6) of this 
subsection or the corresponding provision of prior law) consisting of 
the positions of members of a retirement system who desire coverage 
under the agreement under this section, if the governor (or the official 
so designated) certifies to the Commissioner of Social Security that--
        (A) an opportunity to vote by written ballot on the question of 
    whether they wish to be covered under an agreement under this 
    section was given to all individuals who were members of such system 
    at the time the vote was held;
        (B) not less than ninety days' notice of such vote was given to 
    all individuals who were members of such system on the date the 
    notice was issued;
        (C) the vote was conducted under the supervision of the governor 
    or an agency or individual designated by him; and
        (D) such system was divided into two parts or divisions in 
    accordance with the provisions of subparagraphs (C) and (D) of 
    paragraph (6) of this subsection or the corresponding provision of 
    prior law.

For purposes of this paragraph, an individual in a position to which the 
State agreement already applied or in a position excluded by or pursuant 
to paragraph (5) of this subsection shall not be considered a member of 
the retirement system.
    (8)(A) Notwithstanding paragraph (1) of this subsection, if under 
the provisions of this subsection an agreement is, after December 31, 
1958, made applicable to service performed in positions covered by a 
retirement system, service performed by an individual in a position 
covered by such a system may not be excluded from the agreement because 
such position is also covered under another retirement system.
    (B) Subparagraph (A) shall not apply to service performed by an 
individual in a position covered under a retirement system if such 
individual, on the day the agreement is made applicable to service 
performed in positions covered by such retirement system, is not a 
member of such system and is a member of another system.
    (C) If an agreement is made applicable, prior to 1959, to service in 
positions covered by any retirement system, the preceding provisions of 
this paragraph shall be applicable in the case of such system if the 
agreement is modified to so provide.
    (D) Except in the case of State agreements modified as provided in 
subsection (l) of this section and agreements with interstate 
instrumentalities, nothing in this paragraph shall authorize the 
application of an agreement to service in any policeman's or fireman's 
position.

(e) Effective date of agreement; retroactive coverage

    (1) Any agreement or modification of an agreement under this section 
shall be effective with respect to services performed after an effective 
date specified in such agreement or modification; except that such date 
may not be earlier than the last day of the sixth calendar year 
preceding the year in which such agreement or modification, as the case 
may be, is mailed or delivered by other means to the Commissioner of 
Social Security.
    (2) In the case of service performed by members of any coverage 
group--
        (A) to which an agreement under this section is made applicable, 
    and
        (B) with respect to which the agreement, or modification thereof 
    making the agreement so applicable, specifies an effective date 
    earlier than the date of execution of such agreement and such 
    modification, respectively,

the agreement shall, if so requested by the State, be applicable to such 
services (to the extent the agreement was not already applicable) 
performed before such date of execution and after such effective date by 
any individual as a member of such coverage group if he is such a member 
on a date, specified by the State, which is earlier than such date of 
execution, except that in no case may the date so specified be earlier 
than the date such agreement or such modification, as the case may be, 
is mailed, or delivered by other means, to the Commissioner of Social 
Security.
    (3) Notwithstanding the provisions of paragraph (2) of this 
subsection, in the case of services performed by individuals as members 
of any coverage group to which an agreement under this section is made 
applicable, and with respect to which there were timely paid in good 
faith to the Secretary of the Treasury amounts equivalent to the sum of 
the taxes which would have been imposed by sections 3101 and 3111 of the 
Internal Revenue Code of 1986 had such services constituted employment 
for purposes of chapter 21 of such Code at the time they were performed, 
and with respect to which refunds were not obtained, such individuals 
may, if so requested by the State, be deemed to be members of such 
coverage group on the date designated pursuant to paragraph (2).

(f) Duration of agreement

    No agreement under this section may be terminated, either in its 
entirety or with respect to any coverage group, on or after April 20, 
1983.

(g) Instrumentalities of two or more States

    (1) The Commissioner of Social Security may, at the request of any 
instrumentality of two or more States, enter into an agreement with such 
instrumentality for the purpose of extending the insurance system 
established by this subchapter to services performed by individuals as 
employees of such instrumentality. Such agreement, to the extent 
practicable, shall be governed by the provisions of this section 
applicable in the case of an agreement with a State.
    (2) In the case of any instrumentality of two or more States, if--
        (A) employees of such instrumentality are in positions covered 
    by a retirement system of such instrumentality or of any of such 
    States or any of the political subdivisions thereof, and
        (B) such retirement system is (on, before, or after August 30, 
    1957) divided into two divisions or parts, one of which is composed 
    of positions of members of such system who are employees of such 
    instrumentality and who desire coverage under an agreement under 
    this section and the other of which is composed of positions of 
    members of such system who are employees of such instrumentality and 
    who do not desire such coverage, and
        (C) it is provided that there shall be included in such division 
    or part composed of the positions of members desiring such coverage 
    the positions of employees of such instrumentality who become 
    members of such system after such coverage is extended,

then such retirement system shall, if such instrumentality so desires, 
be deemed to be a separate retirement system with respect to each such 
division or part. An individual who is in a position covered by a 
retirement system divided pursuant to the preceding sentence and who is 
not a member of such system but is eligible to become a member thereof 
shall, for purposes of this subsection, be regarded as a member of such 
system. Coverage under the agreement of any such individual shall be 
provided under the same conditions, to the extent practicable, as are 
applicable in the case of the States to which the provisions of 
subsection (d)(6)(C) of this section apply. The position of any employee 
of any such instrumentality which is covered by any retirement system to 
which the first sentence of this paragraph is applicable shall, if such 
individual is ineligible to become a member of such system on August 30, 
1957, or, if later, the day he first occupies such position, be deemed 
to be covered by the separate retirement system consisting of the 
positions of members of the division or part who do not desire coverage 
under the insurance system established under this subchapter. Services 
in positions covered by a separate retirement system created pursuant to 
this subsection (and consisting of the positions of members who desire 
coverage under an agreement under this section) shall be covered under 
such agreement on compliance, to the extent practicable, with the same 
conditions as are applicable to coverage under an agreement under this 
section of services in positions covered by a separate retirement system 
created pursuant to subparagraph (C) of subsection (d)(6) of this 
section or the corresponding provision of prior law (and consisting of 
the positions of members who desire coverage under such agreement).
    (3) Any agreement with any instrumentality of two or more States 
entered into pursuant to this chapter may, notwithstanding the 
provisions of subsection (d)(5)(A) of this section and the references 
thereto in subsections (d)(1) and (d)(3) of this section, apply to 
service performed by employees of such instrumentality in any 
policeman's or fireman's position covered by a retirement system, but 
only upon compliance, to the extent practicable, with the requirements 
of subsection (d)(3) of this section. For the purpose of the preceding 
sentence, a retirement system which covers positions of policemen or 
firemen or both, and other positions shall, if the instrumentality 
concerned so desires, be deemed to be a separate retirement system with 
respect to the positions of such policemen or firemen, or both, as the 
case may be.

(h) Delegation of functions

    The Commissioner of Social Security is authorized, pursuant to 
agreement with the head of any Federal agency, to delegate any of the 
Commissioner's functions under this section to any officer or employee 
of such agency and otherwise to utilize the services and facilities of 
such agency in carrying out such functions, and payment therefor shall 
be in advance or by way of reimbursement, as may be provided in such 
agreement.

(i) Wisconsin Retirement Fund

    (1) Notwithstanding paragraph (1) of subsection (d) of this section, 
the agreement with the State of Wisconsin may, subject to the provisions 
of this subsection, be modified so as to apply to service performed by 
employees in positions covered by the Wisconsin retirement fund or any 
successor system.
    (2) All employees in positions covered by the Wisconsin retirement 
fund at any time on or after January 1, 1951, shall, for the purposes of 
subsection (c) only, be deemed to be a separate coverage group; except 
that there shall be excluded from such separate coverage group all 
employees in positions to which the agreement applies without regard to 
this subsection.
    (3) The modification pursuant to this subsection shall exclude (in 
the case of employees in the coverage group established by paragraph (2) 
of this subsection) service performed by any individual during any 
period before he is included under the Wisconsin retirement fund.
    (4) The modification pursuant to this subsection shall, if the State 
of Wisconsin requests it, exclude (in the case of employees in the 
coverage group established by paragraph (2) of this subsection) all 
service performed in policemen's positions, all service performed in 
firemen's positions, or both.

(j) Certain positions no longer covered by retirement systems

    Notwithstanding subsection (d) of this section, an agreement with 
any State entered into under this section prior to September 1, 1954 
may, prior to January 1, 1958, be modified pursuant to subsection (c)(4) 
of this section so as to apply to services performed by employees, as 
members of any coverage group to which such agreement already applies 
(and to which such agreement applied on September 1, 1954), in positions 
(1) to which such agreement does not already apply, (2) which were 
covered by a retirement system on the date such agreement was made 
applicable to such coverage group, and (3) which, by reason of action by 
such State or political subdivision thereof, as may be appropriate, 
taken prior to September 1, 1954, are no longer covered by a retirement 
system on the date such agreement is made applicable to such services.

(k) Certain employees of State of Utah

    Notwithstanding the provisions of subsection (d) of this section, 
the agreement with the State of Utah entered into pursuant to this 
section may be modified pursuant to subsection (c)(4) of this section so 
as to apply to services performed for any of the following, the 
employees performing services for each of which shall constitute a 
separate coverage group: Weber Junior College, Carbon Junior College, 
Dixie Junior College, Central Utah Vocational School, Salt Lake Area 
Vocational School, Center for the Adult Blind, Union High School 
(Roosevelt, Utah), Utah High School Activities Association, State 
Industrial School, State Training School, State Board of Education, and 
Utah School Employees Retirement Board. Any modification agreed to prior 
to January 1, 1955, may be made effective with respect to services 
performed by employees as members of any of such coverage groups after 
an effective date specified therein, except that in no case may any such 
date be earlier than December 31, 1950. Coverage provided for in this 
subsection shall not be affected by a subsequent change in the name of a 
group.

(l) Policemen and firemen in certain States

    Any agreement with a State entered into pursuant to this section 
may, notwithstanding the provisions of subsection (d)(5)(A) of this 
section and the references thereto in subsections (d)(1) and (d)(3) of 
this section, be modified pursuant to subsection (c)(4) of this section 
to apply to service performed by employees of such State or any 
political subdivision thereof in any policeman's or fireman's position 
covered by a retirement system in effect on or after August 1, 1956, but 
only upon compliance with the requirements of subsection (d)(3) of this 
section. For the purposes of the preceding sentence, a retirement system 
which covers positions of policemen or firemen, or both, and other 
positions shall, if the State concerned so desires, be deemed to be a 
separate retirement system with respect to the positions of such 
policemen or firemen, or both, as the case may be.

(m) Positions compensated solely on a fee basis

    (1) Notwithstanding any other provision in this section, an 
agreement entered into under this section may be made applicable to 
service performed after 1967 in any class or classes of positions 
compensated solely on a fee basis to which such agreement did not apply 
prior to 1968 only if the State specifically requests that its agreement 
be made applicable to such service in such class or classes of 
positions.
    (2) Notwithstanding any other provision in this section, an 
agreement entered into under this section may be modified, at the option 
of the State, at any time after 1967, so as to exclude services 
performed in any class or classes of positions compensation for which is 
solely on a fee basis.
    (3) Any modification made under this subsection shall be effective 
with respect to services performed after the last day of the calendar 
year in which the modification is mailed or delivered by other means to 
the Commissioner of Social Security.
    (4) If any class or classes of positions have been excluded from 
coverage under the State agreement by a modification agreed to under 
this subsection, the Commissioner of Social Security and the State may 
not thereafter modify such agreement so as to again make the agreement 
applicable with respect to such class or classes of positions.

(n) Optional medicare coverage of current employees

    (1) The Commissioner of Social Security shall, at the request of any 
State, enter into or modify an agreement with such State under this 
section for the purpose of extending the provisions of subchapter XVIII 
of this chapter, and sections 426 and 426-1 of this title, to services 
performed by employees of such State or any political subdivision 
thereof who are described in paragraph (2).
    (2) This subsection shall apply only with respect to employees--
        (A) whose services are not treated as employment as that term 
    applies under section 410(p) of this title by reason of paragraph 
    (3) of such section; and
        (B) who are not otherwise covered under the State's agreement 
    under this section.

    (3) For purposes of sections 426 and 426-1 of this title, services 
covered under an agreement pursuant to this subsection shall be treated 
as ``medicare qualified government employment''.
    (4) Except as otherwise provided in this subsection, the provisions 
of this section shall apply with respect to services covered under the 
agreement pursuant to this subsection.

(Aug. 14, 1935, ch. 531, title II, Sec. 218, as added Aug. 28, 1950, ch. 
809, title I, Sec. 106, 64 Stat. 514; amended June 28, 1952, ch. 483, 66 
Stat. 285; Aug. 15, 1953, ch. 504, Sec. 1, 67 Stat. 587; Sept. 1, 1954, 
ch. 1206, title I, Sec. 101(a)(5), (6), (h)(1)-(8), (i)(1), (2), (j), 68 
Stat. 1055-1059; Aug. 1, 1956, ch. 836, title I, Secs. 103(f), (g), 
104(e), (g), 70 Stat. 823, 825, 826; Pub. L. 85-226, Aug. 30, 1957, 71 
Stat. 511; Pub. L. 85-227, Sec. 1, Aug. 30, 1957, 71 Stat. 512; Pub. L. 
85-229, Aug. 30, 1957, 71 Stat. 513; Pub. L. 85-787, Secs. 1, 2, Aug. 
27, 1958, 72 Stat. 939; Pub. L. 85-798, Secs. 2, 3, Aug. 28, 1958, 72 
Stat. 964, 965; Pub. L. 85-840, title III, Sec. 315(a)-(c)(1), Aug. 28, 
1958, 72 Stat. 1038-1040; Pub. L. 86-284, Sec. 2, Sept. 16, 1959, 73 
Stat. 566; Pub. L. 86-624, Sec. 30(e), (f), July 12, 1960, 74 Stat. 420; 
Pub. L. 86-778, title I, Secs. 102(a), (b)(1), (c)(1), (2), (d), (e), 
(f)(1), (g), (l), 103(i), (j)(2)(G), Sept. 13, 1960, 74 Stat. 928-930, 
934, 936-938; Pub. L. 87-64, title I, Secs. 106, 107, June 30, 1961, 75 
Stat. 139, 140; Pub. L. 87-878, Sec. 2, Oct. 24, 1962, 76 Stat. 1202; 
Pub. L. 88-350, Sec. 2, July 2, 1964, 78 Stat. 240; Pub. L. 88-382, July 
23, 1964, 78 Stat. 335; Pub. L. 89-97, title I, Sec. 108(b), title III, 
Secs. 314, 315, July 30, 1965, 79 Stat. 338, 385; Pub. L. 90-248, title 
I, Secs. 116(a)-(b)(2), (c), (d), 117, 119(a), 120(a), 121, 122(d), Jan. 
2, 1968, 81 Stat. 840-844; Pub. L. 90-486, Sec. 7, Aug. 13, 1968, 82 
Stat. 759; Pub. L. 92-603, title I, Sec. 126, Oct. 30, 1972, 86 Stat. 
1358; Priv. L. 93-107, Sec. 2, Dec. 31, 1974, 88 Stat. 2386; Pub. L. 95-
216, title III, Secs. 319-321, 353(b), Dec. 20, 1977, 91 Stat. 1541, 
1553; Pub. L. 96-265, title V, Sec. 503(a), June 9, 1980, 94 Stat. 470; 
Pub. L. 98-21, title I, Sec. 103(a), title III, Secs. 325(a), 342(a), 
Apr. 20, 1983, 97 Stat. 71, 126, 136; Pub. L. 98-369, div. B, title VI, 
Sec. 2663(a)(13), (j)(2)(A)(ii), (3)(A)(iii), July 18, 1984, 98 Stat. 
1164, 1170; Pub. L. 99-272, title XII, Sec. 12110(a), (b), title XIII, 
Sec. 13205(c), Apr. 7, 1986, 100 Stat. 287, 317; Pub. L. 99-509, title 
IX, Sec. 9002(c)(1), (2)(C)-(E), Oct. 21, 1986, 100 Stat. 1971, 1972; 
Pub. L. 99-514, title XVIII, Sec. 1883(a)(8), Oct. 22, 1986, 100 Stat. 
2916; Pub. L. 100-203, title IV, Sec. 4009(j)(7), title IX, 
Sec. 9023(c), Dec. 22, 1987, 101 Stat. 1330-59, 1330-296; Pub. L. 101-
239, title X, Sec. 10208(d)(2)(A)(v), Dec. 19, 1989, 103 Stat. 2481; 
Pub. L. 101-508, title XI, Sec. 11332(c), Nov. 5, 1990, 104 Stat. 1388-
470; Pub. L. 103-296, title I, Sec. 107(a)(4), title III, Secs. 303(c), 
(d), 305(a), (b), 321(a)(18), (c)(6)(I), Aug. 15, 1994, 108 Stat. 1478, 
1519, 1521, 1537, 1538.)

                       References in Text

    Section 6 of the National Guard Technicians Act of 1968, referred to 
in subsec. (b)(5), is section 6 of Pub. L. 90-486, which is set out as a 
note under section 709 of Title 32, National Guard.
    The Internal Revenue Code of 1986, referred to in subsec. (e)(3), is 
classified to Title 26, Internal Revenue Code.


                               Amendments

    1994--Subsecs. (a)(1), (c)(4). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (c)(6)(F). Pub. L. 103-296, Sec. 321(a)(18), realigned 
margin.
    Subsec. (c)(8). Pub. L. 103-296, Sec. 303(c), (d), substituted ``at 
any time'' for ``on or after January 1, 1968,'', substituted ``$1,000 
with respect to service performed during any calendar year commencing on 
or after January 1, 1995, ending on or before December 31, 1999, and the 
adjusted amount determined under subparagraph (B) for any calendar year 
commencing on or after January 1, 2000, with respect to service 
performed during such calendar year'' for ``$100'', substituted ``Any 
modification of an agreement pursuant to this paragraph shall be 
effective with respect to services performed in and after the calendar 
year in which the modification is mailed or delivered by other means to 
the Secretary.'' for ``Any modification of an agreement pursuant to this 
paragraph shall be effective with respect to services performed after an 
effective date, specified in such modification, which shall not be 
earlier than the last day of the calendar quarter in which the 
modification is mailed or delivered by other means to the Secretary.'', 
inserted subpar. (A) designation, and added subpar. (B).
    Pub. L. 103-296, Sec. 107(a)(4), in par. (8) as amended by Pub. L. 
103-296, Sec. 303(c), (d), substituted ``Commissioner of Social 
Security'' for ``Secretary'' in last sentence of subpar. (A) and in 
introductory and closing provisions of subpar. (B).
    Subsec. (d)(3), (6)(F), (7). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (d)(8)(D). Pub. L. 103-296, Sec. 305(b), substituted ``State 
agreements modified as provided in'' for ``agreements with the States 
named in''.
    Subsec. (e)(1), (2). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (e)(3). Pub. L. 103-296, Sec. 321(c)(6)(I), substituted 
``1986'' for ``1954'' after ``Code of''.
    Subsecs. (g)(1), (h). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary'' in subsecs. (g)(1) 
and (h) and ``the Commissioner's'' for ``his'' in subsec. (h).
    Subsec. (l). Pub. L. 103-296, Sec. 305(a), struck out par. (1) 
designation before ``Any agreement with'', substituted ``a State entered 
into pursuant to this section'' for ``the State of Alabama, California, 
Florida, Georgia, Hawaii, Idaho, Kansas, Maine, Maryland, Mississippi, 
Montana, New York, North Carolina, North Dakota, Oregon, Puerto Rico, 
South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, or 
Washington entered into pursuant to this section prior to August 1, 
1956,'', and struck out par. (2) which read as follows: ``A State, not 
otherwise listed by name in paragraph (1), shall be deemed to be a State 
listed in such paragraph for the purpose of extending coverage under 
this subchapter to service in firemen's positions covered by a 
retirement system, if the governor of the State, or an official of the 
State designated by him for the purpose, certifies to the Secretary that 
the overall benefit protection of the employees in such positions would 
be improved by reason of the extension of such coverage to such 
employees. Notwithstanding the provisions of the second sentence of such 
paragraph (1), such firemen's positions shall be deemed a separate 
retirement system and no other positions shall be included in such 
system.''
    Subsecs. (m)(3), (4), (n)(1). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary''.
    1990--Subsec. (c)(6)(F). Pub. L. 101-508 added subpar. (F).
    1989--Subsec. (c)(5). Pub. L. 101-239 substituted ``subparagraph (B) 
of section 409(a)(7)'' for ``paragraph (2) of section 409(h)''.
    1987--Subsec. (n). Pub. L. 100-203, Sec. 9023(c), redesignated 
subsec. (v) as (n), redesignated pars. (4) and (5) as (3) and (4), 
respectively, and struck out former par. (3) which had previously been 
struck out of subsec. (v) by section 4009(j)(7) of Pub. L. 100-203 prior 
to its redesignation as subsec. (n) by Pub. L. 100-203, Sec. 9023(c)(1). 
See below.
    Subsec. (v). Pub. L. 100-203, Sec. 9023(c)(1), redesignated subsec. 
(v) as (n).
    Subsec. (v)(3). Pub. L. 100-203, Sec. 4009(j)(7), struck out par. 
(3) which read as follows: ``Payments by the State required under 
subsection (e) of this section with respect to employees covered under 
this subsection shall be limited to amounts equivalent to the sum of the 
taxes which would be imposed by sections 3101(b) and 3111(b) of the 
Internal Revenue Code of 1954 if such services for which wages were paid 
to such employees constituted `employment' as defined in section 3121 of 
such Code.''
    1986--Subsec. (d)(6). Pub. L. 99-509, Sec. 9002(c)(2)(C), 
substituted ``subsection (e)'' for ``subsection (f)'' in subpar. (A), 
and ``subsection (e)(1)'' for ``subsection (f)(1)'' in subpar. (F).
    Subsec. (d)(8)(D). Pub. L. 99-509, Sec. 9002(c)(2)(D), substituted 
``subsection (l)'' for ``subsection (p)''.
    Subsec. (e). Pub. L. 99-509, Sec. 9002(c)(1), (2)(E), redesignated 
subsec. (f) as (e), substituted ``Any agreement'' for ``Except as 
provided in subsection (e)(2) of this section, any agreement'', and 
struck out former subsec. (e) which required that agreements under this 
section include certain provisions relating to payments and reports by 
States and allowed inclusion of certain provisions relating to employees 
employed by two or more political subdivisions of a State.
    Subsec. (f). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(g) as (f). Former subsec. (f) redesignated (e).
    Subsec. (f)(1). Pub. L. 99-272, Sec. 12110(a), substituted ``is 
mailed or delivered by other means to the Secretary'' for ``is agreed to 
by the Secretary and the State''.
    Subsec. (g). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(k) as (g). Former subsec. (g) redesignated (f).
    Subsec. (h). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(l) as (h) and struck out former subsec. (h) which required that amounts 
received by the Secretary of the Treasury under an agreement made under 
this section be deposited in the Trust Funds and the Federal Hospital 
Insurance Trust Fund in certain ratio and provided for adjustment of 
amount due if more or less than correct amount due is paid.
    Subsec. (i). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(m) as (i) and struck out former subsec. (i), relating to regulations of 
the Secretary.
    Subsec. (j). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(n) as (j) and struck out former subsec. (j) which read as follows: ``In 
case any State does not make, at the time or times due, the payments 
provided for under an agreement pursuant to this section, there shall be 
added, as part of the amounts due, interest at the rate of 6 per centum 
per annum from the date due until paid, and the Secretary may, in his 
discretion, deduct such amounts plus interest from any amounts certified 
by him to the Secretary of the Treasury for payment to such State under 
any other provision of this chapter. Amounts so deducted shall be deemed 
to have been paid to the State under such other provision of this 
chapter. Amounts equal to the amounts deducted under this subsection are 
hereby appropriated to the Trust Funds in the ratio in which amounts are 
deposited in such Funds pursuant to subsection (h)(1) of this section.''
    Subsec. (k). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(o) as (k). Former subsec. (k) redesignated (g).
    Subsec. (l). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(p) as (l). Former subsec. (l) redesignated (h).
    Subsec. (m). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(u) as (m). Former subsec. (m) redesignated (i).
    Pub. L. 99-514 substituted ``Retirement Fund'' for ``retirement 
fund'' in heading.
    Subsec. (n) to (p). Pub. L. 99-509, Sec. 9002(c)(1), redesignated 
subsecs. (n) to (p) as (j) to (l), respectively.
    Subsec. (q). Pub. L. 99-509, Sec. 9002(c)(1), struck out subsec. (q) 
which provided time limitations on liability of States for amounts due 
under agreements under this section.
    Subsec. (r). Pub. L. 99-509, Sec. 9002(c)(1), struck out subsec. (r) 
which provided time limitations on credits and refunds of overpayments 
by States under agreements under this section.
    Subsec. (s). Pub. L. 99-509, Sec. 9002(c)(1), struck out subsec. (s) 
which related to review by Secretary.
    Subsec. (t). Pub. L. 99-509, Sec. 9002(c)(1), struck out subsec. (t) 
which provided for judicial review of decisions by Secretary of Health 
and Human Services under former subsec. (s) of this section.
    Subsec. (u). Pub. L. 99-509, Sec. 9002(c)(1), redesignated subsec. 
(u) as (m).
    Subsec. (u)(3). Pub. L. 99-272, Sec. 12110(b), substituted ``is 
mailed or delivered by other means to the Secretary'' for ``is agreed to 
by the Secretary and the State''.
    Subsec. (v). Pub. L. 99-272, Sec. 13205(c), added subsec. (v).
    Subsec. (w). Pub. L. 99-509, Sec. 9002(c)(1), struck out subsec. (w) 
which read as follows: ``Notwithstanding sections 3125(a), 6205(a)(5), 
6413(a)(5), and 6413(c)(2)(G) of the Internal Revenue Code of 1954, any 
State shall make payments of the taxes imposed with respect to services 
of employees of such State and of a political subdivision thereof under 
sections 3101(b) and 3111(b) of such Code, and reports of such services, 
under the same procedures as apply to payments and reports under 
subsection (e) of this section, but only if any employees of such State 
or of such political subdivision thereof respectively are covered under 
an agreement pursuant to this section.''
    Pub. L. 99-272, Sec. 13205(c), added subsec. (w).
    1984--Subsecs. (a)(1), (c)(4), (d)(3), (7), (h)(2), (3). Pub. L. 98-
369, Sec. 2663(j)(3)(A)(iii), struck out ``of Health, Education, and 
Welfare'' after ``Secretary'' wherever appearing.
    Subsec. (i). Pub. L. 98-369, Sec. 2663(j)(3)(A)(iii), struck out 
``of Health, Education, and Welfare'' after ``Secretary''.
    Pub. L. 98-369, Sec. 2663(a)(13), substituted ``chapter 21 and 
subtitle F of the Internal Revenue Code of 1954'' for ``subchapter A or 
E of chapter 9 of the Internal Revenue Code of 1939''.
    Subsecs. (j), (k)(1), (l), (p)(2). Pub. L. 98-369, 
Sec. 2663(j)(3)(A)(iii), struck out ``of Health, Education, and 
Welfare'' after ``Secretary'' wherever appearing.
    Subsecs. (q)(4)(B), (6)(B), (r)(1). Pub. L. 98-369, 
Sec. 2663(j)(2)(A)(ii), substituted ``Secretary of Health and Human 
Services'' for ``Secretary of Health, Education, and Welfare'' wherever 
appearing.
    1983--Subsec. (e)(1)(A). Pub. L. 98-21, Sec. 342(a), amended subpar. 
(A) generally, designating existing provisions as cl. (i), and in (i) as 
so designated, substituting ``on the last day of each calendar month'' 
for ``within the thirty-day period immediately following the last day of 
each calendar month'' and inserting ``with respect to the period which 
includes the first fifteen days of such calendar month'' before ``if the 
services'', and adding cl. (ii).
    Subsec. (g). Pub. L. 98-21, Sec. 103(a), amended subsec. (g) 
generally, substituting provision that no agreement under this section 
may be terminated on or after April 20, 1983, for provision that had 
authorized the termination of agreements of States with the Secretary 
conditioned upon the giving of advance notice.
    Subsec. (o). Pub. L. 98-21, Sec. 325(a), inserted provision that 
coverage provided for in this subsection shall not be affected by a 
subsequent change in the name of a group.
    1980--Subsec. (e)(1)(A). Pub. L. 96-265, Sec. 503(a), substituted 
``(A) that the State will pay to the Secretary of the Treasury, within 
the thirty-day period immediately following the last day of each 
calendar month, amounts equivalent to the sum of the taxes which would 
be imposed by sections 3101 and 3111 of the Internal Revenue Code of 
1954 if the services for which wages were paid in such month to 
employees covered by the agreement constituted employment as defined in 
section 3121 of such Code'' for ``(A) that the State will pay to the 
Secretary of the Treasury, at such time or times as the Secretary of 
Health, Education, and Welfare may by regulations prescribe, amounts 
equivalent to the sum of the taxes which would be imposed by sections 
1400 and 1410 of the Internal Revenue Code of 1939, if the services of 
employees covered by the agreement constituted employment as defined in 
section 1426 of the Internal Revenue Code of 1939''.
    1977--Subsec. (c)(8). Pub. L. 95-216, Sec. 353(b)(1), substituted 
``year'' for ``quarter'' and ``$100'' for ``$50''.
    Subsec. (d)(6)(C). Pub. L. 95-216, Sec. 320, inserted reference to 
New Jersey.
    Subsec. (g)(1). Pub. L. 95-216, Sec. 353(b)(2), substituted ``year'' 
for ``quarter''.
    Subsec. (m)(1). Pub. L. 95-216, Sec. 321, inserted ``or any 
successor system'' after ``Wisconsin retirement fund''.
    Subsec. (p)(1). Pub. L. 95-216, Sec. 319, inserted reference to 
Mississippi.
    Subsec. (q)(4)(B). Pub. L. 95-216, Sec. 353(b)(3), substituted 
references to calendar years for references to calendar quarters 
wherever appearing.
    Subsec. (q)(6)(B). Pub. L. 95-216, Sec. 353(b)(4), substituted 
``period or periods designated by the State in such wage reports as the 
period or'' for ``calendar quarters designated by the State in such wage 
reports as the''.
    Subsec. (r)(1). Pub. L. 95-216, Sec. 353(b)(5), in provisions 
preceding cl. (A) and in cl. (B) substituted ``year'' for ``quarter'', 
and in cl. (A) struck out ``in which occurred the calendar quarter'' 
after ``year''.
    1974--Subsec. (p)(1). Priv. L. 93-107 inserted ``Montana,'' after 
``Maryland,''.
    1972--Subsec. (p)(1). Pub. L. 92-603 inserted ``Idaho,'' after 
``Hawaii,''.
    1968--Subsec. (b)(5). Pub. L. 90-486 substituted provisions 
pertaining to the coverage of persons employed under section 709 of 
title 32, who elected under section 6 of the National Guard Technicians 
Act of 1968 to remain covered by an employee retirement system of, or 
plan sponsored by, a state or the Commonwealth of Puerto Rico, such 
persons, for the purposes of this chapter, to be considered employees of 
the state or the Commonwealth of Puerto Rico, for provisions pertaining 
to the coverage of civilian employees of National Guard units of a state 
who are employed pursuant to section 42 of title 32, and who are paid 
from funds allotted to such units by the Department of the Defense, such 
persons, for the purposes of this section, to be deemed employees of the 
state.
    Subsec. (c)(3). Pub. L. 90-248, Sec. 116(b)(1)(A), struck out 
subpar. (A) which provided for the exclusion of any service of an 
emergency nature and redesignated subpars. (B) and (C) as (A) and (B), 
respectively.
    Subsec. (c)(4). Pub. L. 90-248, Sec. 116(b)(1)(B), substituted 
``(3)(B)'' for ``(3)(C)''.
    Subsec. (c)(6)(E). Pub. L. 90-248, Sec. 116(b)(2), added subpar. 
(E).
    Subsec. (c)(7). Pub. L. 90-248, Sec. 116(b)(1)(B), substituted 
``(3)(B)'' for ``(3)(C)''.
    Subsec. (c)(8). Pub. L. 90-248, Sec. 116(c), added par. (8).
    Subsec. (d)(4)(C). Pub. L. 90-248, Sec. 116(b)(1)(C), substituted 
``(c)(3)(B)'' for ``(c)(3)(C)''.
    Subsec. (d)(5)(B). Pub. L. 90-248, Sec. 116(b)(1)(B), substituted 
``(3)(B)'' for ``(3)(C)'' wherever appearing.
    Subsec. (d)(6)(C). Pub. L. 90-248, Sec. 117, inserted ``Illinois,'' 
after ``Georgia,''.
    Subsec. (d)(6)(D). Pub. L. 90-248, Sec. 116(a), designated existing 
provisions as cl. (i) and added cl. (ii).
    Subsec. (d)(6)(F). Pub. L. 90-248, Sec. 116(d), substituted ``1970'' 
for ``1967''.
    Subsec. (f)(3). Pub. L. 90-248, Sec. 121, added par. (3).
    Subsec. (p). Pub. L. 90-248, Secs. 119(a), 120(a), designated 
existing provisions as par. (1), inserted ``Puerto Rico,'' after 
``Oregon,'', and added par. (2).
    Subsec. (u). Pub. L. 90-248, Sec. 122(d), added subsec. (u).
    1965--Subsec. (d)(6)(C). Pub. L. 89-97, Sec. 314, inserted 
``Alaska,'' before ``California''.
    Subsec. (d)(6)(F). Pub. L. 89-97, Sec. 315, substituted ``1967'' for 
``1963''.
    Subsec. (h)(1). Pub. L. 89-97, Sec. 108(b), substituted ``Trust 
Funds and the Federal Hospital Insurance Trust Fund in the ratio in 
which amounts are appropriated to such Funds pursuant to subsection 
(a)(3) of section 401 of this title, subsection (b)(1) of such section, 
and subsection (a)(1) of section 1395i of this title, respectively'' for 
``Trust Funds in the ratio in which amounts are appropriated to such 
Funds pursuant to subsections (a)(3) and (b)(1) of section 401 of this 
title''.
    1964--Subsec. (d)(6)(C). Pub. L. 88-382 included retirement systems 
established by Nevada.
    Subsec. (p). Pub. L. 88-350 inserted reference to Texas.
    1962--Subsec. (p). Pub. L. 87-878 inserted reference to Maine.
    1961--Subsec. (d)(6)(C). Pub. L. 87-64, Sec. 107, included 
retirement system established by the State of New Mexico.
    Subsec. (d)(6)(F). Pub. L. 87-64, Sec. 106, substituted ``prior to 
1963 or, if later, the expiration of two years after the date'' for 
``prior to 1960 or, if later the expiration of one year after the 
date'', and inserted sentence providing that any such modification or 
later modification, providing for the transfer of additional positions 
within a retirement system previously divided pursuant to subpar. (C) to 
the separate retirement system composed of positions of members who 
desire coverage, shall be effective with respect to services performed 
after the same effective date as that which was specified in the case of 
such previous division.
    1960--Subsec. (b)(1). Pub. L. 86-778, Sec. 103(i), excluded Guam and 
American Samoa from definition of ``State''.
    Subsec. (c)(6)(C). Pub. L. 86-778, Sec. 103(j)(2)(G), substituted 
``section 410(k)'' for ``section 410(l)''.
    Subsec. (d)(3). Pub. L. 86-778, Sec. 102(a)(1), authorized 
certification by an official of the State designated by the Governor for 
that purpose.
    Subsec. (d)(6). Pub. L. 86-624, Sec. 30(e), substituted ``Hawaii'' 
for ``the Territory of Hawaii'' in cl. (C) and (G), and struck out ``or 
Territory'' after ``State'' in two places in cl. (C) and in seven places 
in cl. (G).
    Subsec. (d)(6)(A). Pub. L. 86-778, Sec. 102(c)(2), authorized a 
State, where a retirement system covering positions of employees of a 
State and positions of employees of one or more political subdivisions 
of the State, or covering positions of employees of two or more 
political subdivisions of the State, is not divided into separate 
retirement systems, to deem the system, for purposes of subsec. (f) of 
this section, to be a separate retirement system with respect to any one 
or more of the political subdivisions concerned and, where the 
retirement system covers positions of employees of the State, a separate 
retirement system with respect to the State or any one or more of the 
political subdivisions concerned.
    Subsec. (d)(6)(B). Pub. L. 86-778, Sec. 102(g), inserted sentences 
providing that if a retirement system covers positions of employees of a 
hospital which is an integral part of a political subdivision, then, for 
purposes of preceding paragraphs there shall, if the State so desires, 
be deemed to be a separate retirement system for the employees of such 
hospital.
    Subsec. (d)(6)(C). Pub. L. 86-778, Sec. 102(b)(1), (l), inserted 
sentence requiring the positions of individuals, who become members of a 
separate retirement system which has been divided into two divisions or 
parts by reason of action taken by a political subdivision after 
coverage under an agreement under this section has been extended to the 
division or part thereof composed of positions of individuals who desire 
such coverage, to be included in the division or part of such system 
composed of positions of members who do not desire such coverage if such 
individuals, on the day before becoming such members, were in the 
division or part of another separate retirement system composed of 
positions of members who do not desire coverage under an agreement and 
all of the positions in the system of which such individuals so become 
members and all of the positions in the separate retirement system would 
have been covered by a single retirement system if the State had not 
taken action to provide for separate retirement systems, and included 
retirement systems established by the State of Texas.
    Subsec. (d)(7). Pub. L. 86-778, Sec. 102(a)(2), included 
certifications made by an official of the State designated by the 
Governor for that purpose.
    Subsec. (e). Pub. L. 86-778, Sec. 102(e)(1), designated existing 
provisions as par. (1), redesignated former pars. (1) and (2) as 
subpars. (A) and (B), and added par. (2).
    Subsec. (f)(1). Pub. L. 86-778, Sec. 102(c)(1), (e)(2), inserted 
exception to subsection (e)(2) of this section, and substituted 
provisions restricting the effective date of any agreement of 
modification to a date not earlier than the last day of the sixth 
calendar year preceding the year in which such agreement or modification 
is agreed to by the Secretary and the State for provisions which 
specified the effective date of agreements or modifications entered into 
prior to 1960 and which limited the effective date of agreements or 
modifications entered into after 1959 to a date not earlier than the 
last day of the calendar year preceding the year in which such agreement 
or modification is agreed to by the Secretary and the State.
    Subsec. (p). Pub. L. 86-778, Sec. 102(d), inserted reference to 
Virginia.
    Pub. L. 86-624, Sec. 30(f), substituted ``Hawaii'' for ``Territory 
of Hawaii''.
    Subsecs. (q) to (t). Pub. L. 86-778, Sec. 102(f)(1), added subsecs. 
(q) to (t).
    1959--Subsec. (p). Pub. L. 86-284 inserted reference to California, 
Kansas, North Dakota, and Vermont.
    1958--Subsec. (d)(6). Pub. L. 85-840, Sec. 315(a)(1), designated 
first sentence as subpar. (A), second and third sentences as subpar. 
(B), fourth sentence as subpar. (C), fifth sentence as subpar. (D), and 
sixth sentence as subpar. (G), added subpars. (E) and (F), and amended 
subpar. (C) to include retirement systems established by the States of 
Massachusetts and Vermont.
    Pub. L. 85-787 added Massachusetts and Vermont to States authorized 
to divide their retirement systems into two parts, and inserted sentence 
permitting transfer, in cases of divided retirement system, of members 
not desiring coverage to system of members desiring coverage.
    Subsec. (d)(7). Pub. L. 85-840, Sec. 315(a)(2), substituted 
``(created under subparagraph (C) of paragraph (6) of this subsection or 
the corresponding provision of prior law)'' for ``(created under the 
fourth sentence of paragraph (6) of this subsection)'', and 
``subparagraphs (C) and (D) of paragraph (6) of this subsection or the 
corresponding provision of prior law'' for ``the fourth and fifth 
sentences of paragraph (6) of this subsection''.
    Subsec. (d)(8). Pub. L. 85-840, Sec. 315(b), added par. (8).
    Subsec. (f). Pub. L. 85-840, Sec. 315(c)(1), designated existing 
provisions as par. (1), redesignated cls. (1) to (4) of par. (1) as cls. 
(A) to (D), and added par. (2).
    Subsec. (k)(2). Pub. L. 85-840, Sec. 315(a)(3), inserted provisions 
requiring an individual who is in a position covered by a retirement 
system divided pursuant to the preceding sentence and who is not a 
member of such system but is eligible to become a member thereof to be 
regarded, for the purposes of this subsection, as a member of such 
system, and providing for coverage under the agreement of any such 
individual.
    Subsec. (k)(3). Pub. L. 85-798, Sec. 2, added par. (3).
    Subsec. (p). Pub. L. 85-798, Sec. 3, included agreements with the 
State of Washington.
    1957--Subsec. (d)(6). Pub. L. 85-227 authorized the States of 
California, Connecticut, Minnesota, and Rhode Island, or any political 
subdivisions thereof, to divide their retirement system into two 
divisions or parts.
    Subsec. (d)(7). Pub. L. 85-229 added par. (7).
    Subsec. (f)(3). Pub. L. 85-226, Sec. 3, added par. (3). Former par. 
(3) redesignated (4).
    Subsec. (f)(4). Pub. L. 85-226, Sec. 3, redesignated former par. (3) 
as (4), and substituted ``1959'' for ``1957''.
    Subsec. (k). Pub. L. 85-226, Sec. 1, redesignated existing 
provisions as par. (1) and added par. (2).
    Subsec. (p). Pub. L. 85-226, Sec. 2, included agreements with the 
States of Alabama, Georgia, Maryland, New York, and Tennessee, or the 
Territory of Hawaii.
    1956--Subsec. (d)(6). Act Aug. 1, 1956, Sec. 104(e), authorized the 
State of Florida, Georgia, New York, North Dakota, Pennsylvania, 
Tennessee, Washington, Wisconsin, or the Territory of Hawaii, or any 
political subdivision thereof, to divide their retirement system into 
two divisions or parts, and provided for a separate retirement system 
with respect to employees of the States of Florida, Georgia, Minnesota, 
North Dakota, Pennsylvania, Washington, or the Territory of Hawaii who 
are compensated in whole or in part from grants under subchapter III of 
this chapter.
    Subsec. (h)(1). Act Aug. 1, 1956, Sec. 103(f), required amounts to 
be deposited in the Trust Funds in the ratio in which amounts are 
appropriated to such Funds pursuant to section 401(a)(3), (b)(1), of 
this title.
    Subsec. (j). Act Aug. 1, 1956, Sec. 103(g), substituted ``Secretary 
of Health, Education, and Welfare'' for ``Administrator'', and provided 
for appropriation of amounts in the ratio in which amounts are deposited 
in the Trust Funds pursuant to subsection (h)(1) of this section.
    Subsec. (p). Act Aug. 1, 1956, Sec. 104(g), added subsec. (p).
    1954--Subsec. (b)(5). Act Sept. 1, 1954, Sec. 101(i)(1), (2), 
inserted sentence at end relating to civilian employees of State 
National Guard units and a sentence relating to certain State inspectors 
of agricultural products.
    Subsec. (c)(3). Act Sept. 1, 1954, Sec. 101(h)(3), inserted an 
additional optional exclusion with respect to all services performed by 
individuals as members of any coverage group who are in positions 
covered by a retirement system on the date when the group is brought 
under the agreement if these individuals are not eligible to become 
members of the system on that date, or on any later date when they first 
occupy the positions, and if they have not already been included under 
the agreement by means of a referendum.
    Subsec. (c)(4). Act Sept. 1, 1954, Sec. 101(h)(4), inserted sentence 
at end.
    Subsec. (c)(5). Act Sept. 1, 1954, Sec. 101(a)(5), (6), substituted 
``paragraph (7)'' for ``paragraph (8),'' and inserted at end ``and 
service the remuneration for which is excluded from wages by paragraph 
(2) of section 209(h)''.
    Subsec. (c)(6)(D). Act Sept. 1, 1954, Sec. 101(a)(5), substituted 
``paragraph (7)'' for ``paragraph (8)''.
    Subsec. (c)(7). Act Sept. 1, 1954, Sec. 101(h)(5), added par. (7).
    Subsec. (d). Act Sept. 1, 1954, Sec. 101(h)(1)(A), struck out 
``Exclusion of'' in heading, redesignated the subsection as (d)(1), and 
inserted sentence at end.
    Subsec. (d)(1). Act Sept. 1, 1954, Sec. 101(h)(1)(B), inserted 
provision in first sentence making the prohibition inapplicable to 
service in positions which though covered by a retirement system on the 
enactment date, were, by reason of action taken prior to the enactment 
date by the appropriate governmental unit, no longer covered by a 
retirement system when the coverage group which included employees in 
such positions was brought under an agreement.
    Subsec. (d)(2) to (6). Act Sept. 1, 1954, Sec. 101(h)(2), added 
pars. (2) to (6).
    Subsec. (f). Act Sept. 1, 1954, Sec. 101(h)(6), permitted agreements 
or modifications entered into during 1955, 1956, and 1957 to be made 
retroactive to a date not earlier than December 31, 1954.
    Subsec. (m)(1). Act Sept. 1, 1954, Sec. 101(h)(7), substituted 
``paragraph (1) of subsection (d)'' for ``subsection (d)''.
    Subsec. (n). Act Sept. 1, 1954, Sec. 101(h)(8), added subsec. (n).
    Subsec. (o). Act Sept. 1, 1954, Sec. 101(j), added subsec. (l).
    1953--Subsec. (m). Act Aug. 15, 1953, added subsec. (m).
    1952--Subsec. (f). Act June 28, 1952, substituted ``January 1, 
1954'' for ``January 1, 1953''.


                    Effective Date of 1994 Amendment

    Amendment by section 107(a)(4) of Pub. L. 103-296 effective Mar. 31, 
1995, see section 110(a) of Pub. L. 103-296, set out as a note under 
section 401 of this title.
    Amendment by section 303(c) of Pub. L. 103-296 applicable with 
respect to service performed on or after Jan. 1, 1995, see section 
303(e) of Pub. L. 103-296, set out as a note under section 410 of this 
title.
    Section 305(c) of Pub. L. 103-296 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
modifications filed by States after the date of the enactment of this 
Act [Aug. 15, 1994].''


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 applicable with respect to service 
performed after July 1, 1991, see section 11332(d) of Pub. L. 101-508, 
set out as a note under section 3121 of Title 26, Internal Revenue Code.


                    Effective Date of 1986 Amendments

    Amendment by section 1883(a)(8) of Pub. L. 99-514 effective Oct. 22, 
1986, see section 1883(f) of Pub. L. 99-514, set out as a note under 
section 402 of this title.
    Section 9002(d) of Pub. L. 99-509 provided that: ``The amendments 
made by this section [enacting section 3126 of Title 26, Internal 
Revenue Code, amending this section and sections 405 and 424a of this 
title and sections 1402, 3121, and 3306 of Title 26, and renumbering 
former section 3126 of Title 26 as section 3127] are effective with 
respect to payments due with respect to wages paid after December 31, 
1986, including wages paid after such date by a State (or political 
subdivision thereof) that modified its agreement pursuant to the 
provisions of section 218(e)(2) of the Social Security Act [subsec. 
(e)(2) of this section] prior to the date of the enactment of this Act 
[Oct. 21, 1986]; except that in cases where, in accordance with the 
currently applicable schedule, deposits of taxes due under an agreement 
entered into pursuant to section 218 of the Social Security Act would be 
required within 3 days after the close of an eighth-monthly period, such 
3-day requirement shall be changed to a 7-day requirement for wages paid 
prior to October 1, 1987, and to a 5-day requirement for wages paid 
after September 30, 1987, and prior to October 1, 1988. For wages paid 
prior to October 1, 1988, the deposit schedule for taxes imposed under 
sections 3101 and 3111 shall be determined separately from the deposit 
schedule for taxes withheld under section 3402 [26 U.S.C. 3402] if the 
taxes imposed under sections 3101 and 3111 are due with respect to 
service included under an agreement entered into pursuant to section 218 
of the Social Security Act.''
    Section 12110(c) of Pub. L. 99-272 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
agreements and modifications of agreements which are mailed or delivered 
to the Secretary of Health and Human Services (under section 218 of the 
Social Security Act [this section]) on or after the date of the 
enactment of this Act [Apr. 7, 1986].''
    Section 13205(d)(3) of Pub. L. 99-272 provided that: ``The amendment 
made by subsection (c) [amending this section] shall apply to services 
performed after March 31, 1986.''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective July 18, 1984, but not to be 
construed as changing or affecting any right, liability, status, or 
interpretation which existed (under the provisions of law involved) 
before that date, see section 2664(b) of Pub. L. 98-369, set out as a 
note under section 401 of this title.


                    Effective Date of 1983 Amendment

    Section 103(b) of Pub. L. 98-21 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to any agreement 
in effect under section 218 of the Social Security Act [this section] on 
the date of the enactment of this Act [Apr. 20, 1983], without regard to 
whether a notice of termination is in effect on such date, and to any 
agreement or modification thereof which may become effective under such 
section 218 after that date.''
    Section 325(b) of Pub. L. 98-21 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
name changes made before, on, or after the date of the enactment of this 
section [Apr. 20, 1983].''
    Section 342(b) of Pub. L. 98-21 provided that: ``The amendments made 
by this section [amending this section] shall apply to calendar months 
beginning after December 31, 1983.''


                    Effective Date of 1980 Amendment

    Section 503(b) of Pub. L. 96-265 provided that: ``The amendment made 
by subsection (a) [amending this section] shall be effective with 
respect to the payment of taxes (referred to in section 218(e)(1)(A) of 
the Social Security Act [subsec. (e)(1)(A) of this section], as amended 
by subsection (a)) on account of wages paid on or after July 1, 1980.''


                    Effective Date of 1977 Amendment

    Section 353(g) of Pub. L. 95-216 provided that: ``The amendments 
made by subsection (b) of this section [amending this section] shall 
apply with respect to remuneration paid after December 31, 1977, except 
that the amendment made by subsection (b)(2) shall apply with respect to 
notices submitted by the States to the Secretary after the date of the 
enactment of this Act [Dec. 20, 1977]. The amendments made by 
subsections (d) and (f)(2) [amending sections 405 and 429 of this title] 
shall be effective January 1, 1978. Except as otherwise specifically 
provided, the remaining amendments made by this section [amending 
sections 403, 424a, and 430 of this title] shall be effective January 1, 
1979.''


                    Effective Date of 1968 Amendments

    Amendment by Pub. L. 90-486 effective Jan. 1, 1968, except that no 
deductions or withholding from salary which result therefrom shall 
commence before first day of first pay period that begins on or after 
Jan. 1, 1968, see section 11 of Pub. L. 90-486, set out as a note under 
section 709 of Title 32, National Guard.
    Section 116(b)(3) of Pub. L. 90-248 provided that: ``The amendments 
made by this subsection [amending this section] shall be effective with 
respect to services performed on or after January 1, 1968.''
    Section 120(c) of Pub. L. 90-248 provided that: ``The amendment made 
by this section [amending this section] shall apply in the case of any 
State with respect to modifications of such State agreement under 
section 218 of the Social Security Act [this section] made after the 
date of enactment of this Act [Jan. 2, 1968].''


                    Effective Date of 1961 Amendment

    Amendment by Pub. L. 87-64 effective Aug. 1, 1961, see section 109 
of Pub. L. 87-64, set out as a note under section 402 of this title.


                    Effective Date of 1960 Amendment

    Section 102(b)(2) of Pub. L. 86-778 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply in the case of 
transfers of positions (as described therein) which occur on or after 
the date of enactment of this Act [Sept. 13, 1960]. Such amendment shall 
also apply in the case of such transfers in any State which occurred 
prior to such date, but only upon request of the Governor (or other 
official designated by him for the purpose) filed with the Secretary of 
Health, Education, and Welfare before July 1, 1961; and, in the case of 
any such request, such amendment shall apply only with respect to wages 
paid on and after the date on which such request is filed.''
    Section 102(c)(3) of Pub. L. 86-778 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply in the case of 
any agreement or modification of an agreement under section 218 of the 
Social Security Act [this section] which is agreed to on or after 
January 1, 1960; except that in the case of any such agreement or 
modification agreed to before January 1, 1961, the effective date 
specified therein shall not be earlier than December 31, 1955. The 
amendment made by paragraph (2) [amending this section] shall apply in 
the case of any such agreement or modification which is agreed to on or 
after the date of the enactment of this Act [Sept. 13, 1960].''
    Section 102(f)(3) of Pub. L. 86-778 provided that:
    ``(A) The amendments made by paragraphs (1) and (2) [amending this 
section and section 405 of this title] shall become effective on the 
first day of the second calendar year following the year in which this 
Act is enacted [1960].
    ``(B) In any case in which the Secretary of Health, Education, and 
Welfare has notified a State prior to the beginning of such second 
calendar year that there is an amount due by such State, that such 
State's claim for a credit or refund of an overpayment is disallowed, or 
that such State has been allowed a credit or refund of an overpayment, 
under an agreement pursuant to section 218 of the Social Security Act 
[this section], then the Secretary shall be deemed to have made an 
assessment of such amount due as provided in section 218(q) of such Act 
or notified the State of such allowance or disallowance, as the case may 
be, on the first day of such second calendar year. In such a case the 
90-day limitation in section 218(s) of such Act shall not be applicable 
with respect to the assessment so deemed to have been made or the 
notification of allowance or disallowance so deemed to have been given 
the State. However, the preceding sentences of this subparagraph shall 
not apply if the Secretary makes an assessment of such amount due or 
notifies the State of such allowance or disallowance on or after the 
first day of the second calendar year following the year in which this 
Act is enacted [1960] and within the period specified in section 218(q) 
of the Social Security Act or the period specified in section 218(r) of 
such Act, as the case may be.''
    Amendments by section 103(i) of Pub. L. 86-778 applicable only with 
respect to service performed after 1960, and amendment by section 
103(j)(2)(G) of Pub. L. 86-778 effective on Sept. 13, 1960, see section 
103(v)(1) of Pub. L. 86-778, set out as a note under section 402 of this 
title.


                    Effective Date of 1958 Amendment

    Section 315(c)(2) of Pub. L. 85-840 provided that: ``The amendment 
made by this subsection [amending this section] shall apply in the case 
of any agreement, or modification of an agreement, under section 218 of 
the Social Security Act [this section], which is executed after the date 
of enactment of this Act [Aug. 28, 1958].''


                    Effective Date of 1954 Amendment

    Section 101(h)(9) of act Sept. 1, 1954, provided that: ``The 
amendments made by this subsection, other than paragraph (1)(B) 
[amending this section], shall take effect January 1, 1955.''
    Section 101(i)(1) of act Sept. 1, 1954, provided that the amendment 
made by that section is effective as of January 1, 1951.
    Section 101(i)(2) of act Sept. 1, 1954, provided that the amendment 
made by that section is effective January 1, 1955.
    Section 101(i)(3) of act Sept. 1, 1954, provided that: ``In the case 
of any coverage group to which the amendment made by paragraph (1) 
[amending this section] is applicable, any agreement or modification of 
an agreement agreed to prior to January 1, 1956, may, notwithstanding 
section 218(f) of the Social Security Act [subsec. (f) of this section], 
be made effective with respect to services performed by employees as 
members of such coverage group after any effective date specified 
therein, but in no case may such effective date be earlier than December 
31, 1950.''
    Section 101(j) of act Sept. 1, 1954, provided that the amendment 
made by that section is effective as of January 1, 1951.
    Amendment by section 101(a)(5), (6) of act Sept. 1, 1954, shall be 
applicable only with respect to services (whether performed after 1954 
or prior to 1955) for which the remuneration is paid after 1954, see 
section 101(n) of act Sept. 1, 1954, set out as a note under section 405 
of this title.


                    Effective Date of 1953 Amendment

    Section 2 of act Aug. 15, 1953, provided that: ``For the purposes of 
section 418(f) of the Social Security Act (relating to effective date of 
agreements) [subsec. (f) of this section], the amendment made by the 
first section of this Act [amending this section] shall take effect as 
of January 1, 1951.''


     Exemption for Students Employed by State Schools, Colleges, or 
                              Universities

    Pub. L. 105-277, div. J, title II, Sec. 2023, Oct. 21, 1998, 112 
Stat. 2681-904, provided that:
    ``(a) In General.--Notwithstanding section 218 of the Social 
Security Act [this section], any agreement with a State (or any 
modification thereof) entered into pursuant to such section may, at the 
option of such State, be modified at any time on or after January 1, 
1999, and on or before March 31, 1999, so as to exclude service 
performed in the employ of a school, college, or university if such 
service is performed by a student who is enrolled and is regularly 
attending classes at such school, college, or university.
    ``(b) Effective Date of Modification.--Any modification of an 
agreement pursuant to subsection (a) shall be effective with respect to 
services performed after June 30, 2000.
    ``(c) Irrevocability of Modification.--If any modification of an 
agreement pursuant to subsection (a) terminates coverage with respect to 
service performed in the employ of a school, college, or university, by 
a student who is enrolled and regularly attending classes at such 
school, college, or university, the Commissioner of Social Security and 
the State may not thereafter modify such agreement so as to again make 
the agreement applicable to such service performed in the employ of such 
school, college, or university.''


  Treatment of Certain Credits as Amounts Deposited in Social Security 
                    Trust Funds Pursuant to Agreement

    Section 123(b)(4) of Pub. L. 98-21, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``For purposes of 
subsection (h) of section 218 of the Social Security Act [subsec. (h) of 
this section] (relating to deposits in social security trust funds of 
amounts received under section 218 agreements), amounts allowed as a 
credit pursuant to subsection (d) of section 3510 of the Internal 
Revenue Code of 1986 [formerly I.R.C. 1954] [26 U.S.C. 3510(d)] 
(relating to credit for remuneration paid during 1984 which is covered 
under an agreement under section 218 of the Social Security Act) shall 
be treated as amounts received under such an agreement.''


  Modification of Agreement With State of Iowa To Provide Coverage for 
                      Certain Policemen and Firemen

    Section 9008 of Pub. L. 100-203 provided that:
    ``(a) In General.--Notwithstanding subsection (d)(5)(A) of section 
218 of the Social Security Act [subsec. (d)(5)(A) of this section] and 
the references thereto in subsections (d)(1) and (d)(3) of such section 
218, the agreement with the State of Iowa heretofore entered into 
pursuant to such section 218 may, at any time prior to January 1, 1989, 
be modified pursuant to subsection (c)(4) of such section 218 so as to 
apply to services performed in policemen's or firemen's positions 
required to be covered by a retirement system pursuant to section 410.1 
of the Iowa Code as in effect on July 1, 1953, if the State of Iowa has 
at any time prior to the date of the enactment of this Act [Dec. 22, 
1987] paid to the Secretary of the Treasury, with respect to any of the 
services performed in such positions, the sums prescribed pursuant to 
subsection (e)(1) of such section 218 (as in effect on December 31, 
1986, with respect to payments due with respect to wages paid on or 
before such date).
    ``(b) Service To Be Covered.--Notwithstanding the provisions of 
subsection (e) of section 218 of the Social Security Act (as so 
redesignated by section 9002(c)(1) of the Omnibus Budget Reconciliation 
Act of 1986)), any modification in the agreement with the State of Iowa 
under subsection (a) shall be made effective with respect to--
        ``(1) all services performed in any policemen's or firemen's 
    position to which the modification relates on or after January 1, 
    1987, and
        ``(2) all services performed in such a position before January 
    1, 1987, with respect to which the State of Iowa has paid to the 
    Secretary of the Treasury the sums prescribed pursuant to subsection 
    (e)(1) of such section 218 (as in effect on December 31, 1986, with 
    respect to payments due with respect to wages paid on or before such 
    date) at the time or times established pursuant to such subsection 
    (e)(1), if and to the extent that--
            ``(A) no refund of the sums so paid has been obtained, or
            ``(B) a refund of part or all of the sums so paid has been 
        obtained but the State of Iowa repays to the Secretary of the 
        Treasury the amount of such refund within 90 days after the date 
        on which the modification is agreed to by the State and the 
        Secretary of Health and Human Services.''


Modification of Agreement With State of Connecticut To Provide Coverage 
                      for Connecticut State Police

    Section 12114 of Pub. L. 99-272 provided that: ``Notwithstanding any 
provision of section 218 of the Social Security Act [this section], the 
Secretary of Health and Human Services shall, upon the request of the 
Governor of Connecticut, modify the agreement under such section between 
the Secretary and the State of Connecticut to provide that service 
performed after the date of the enactment of this Act [Apr. 7, 1986] by 
members of the Division of the State Police within the Connecticut 
Department of Public Safety, who are hired on or after May 8, 1984, and 
who are members of the tier II plan of the Connecticut State Employees 
Retirement System, shall be covered under such agreement.''


Modification of Agreement With State of Illinois To Provide Coverage for 
                      Certain Policemen and Firemen

    Section 318 of Pub. L. 95-216 provided that the agreement with the 
State of Illinois entered into pursuant to this section could, at any 
time prior to Jan. 1, 1979, be modified pursuant to subsec. (c)(4) of 
this section so as to apply to services performed in the policemen's or 
firemen's positions covered by the Illinois Municipal Retirement Fund on 
Dec. 20, 1977, if the State of Illinois had prior to such date paid to 
the Secretary of the Treasury, with respect to any of the services 
performed in such positions, the sums prescribed pursuant to subsec. 
(e)(1) of this section.


 Modification of Reporting Procedures in Effect December 1, 1975, Under 
                        Federal-State Agreements

    Pub. L. 94-202, Sec. 8(k), Jan. 2, 1976, 89 Stat. 1140, provided 
that: ``Notwithstanding the provisions of section 218(i) of the Social 
Security Act [subsec. (i) of this section], nothing contained in the 
amendments made by the preceding provisions of this section [enacting 
section 432 of this title and amending sections 401, 403, 424a, and 430 
of this title and section 6103 of Title 26, Internal Revenue Code, and 
enacting provisions set out as notes under sections 401 and 432 of this 
title] shall be construed to authorize or require the Secretary, in 
promulgating regulations or amendments thereto under such section 
218(i), substantially to modify the procedures, as in effect on December 
1, 1975, for the reporting by States to the Secretary of the wages of 
individuals covered by social security pursuant to Federal-State 
agreements entered into pursuant to section 218 of the Social Security 
Act [this section].''


 Modification of Agreement With State of West Virginia With Respect to 
                      Certain Policemen and Firemen

    Pub. L. 94-202, Sec. 6, Jan. 2, 1976, 89 Stat. 1136, provided that:
    ``(a) Notwithstanding the provisions of subsection (d)(5)(A) of 
section 218 of the Social Security Act [subsec. (d)(5)(A) of this 
section] and the references thereto in subsections (d)(1) and (d)(3) of 
such section 218, the agreement with the State of West Virginia 
heretofore entered into pursuant to such section 218 [this section] may, 
at any time prior to 1977, be modified pursuant to subsection (c)(4) of 
such section 218 so as to apply to services performed in policemen's or 
firemen's positions covered by a retirement system on the date of the 
enactment of this Act [Jan. 2, 1976] by individuals as employees of any 
class III or class IV municipal corporation (as defined in or under the 
laws of the State) if the State of West Virginia has at any time prior 
to the date of the enactment of this Act paid to the Secretary of the 
Treasury, with respect to any of the services performed in such 
positions by individuals as employees of such municipal corporation, the 
sums prescribed pursuant to subsection (e)(1) of such section 218. For 
purposes of this subsection, a retirement system which covers positions 
of policemen or firemen, or both, and other positions, shall, if the 
State of West Virginia so desires, be deemed to be a separate retirement 
system with respect to the positions of such policemen or firemen, or 
both, as the case may be.
    ``(b) Notwithstanding the provisions of subsection (f) of section 
218 of the Social Security Act, any modification in the agreement with 
the State of West Virginia under subsection (a) of this section, to the 
extent it involves services performed by individuals as employees of any 
class III or class IV municipal corporation, may be made effective with 
respect to--
        ``(1) all services performed by such individual, in any 
    policemen's or firemen's position to which the modification relates, 
    on or after the date of the enactment of this Act; and
        ``(2) all services performed by such individual in such a 
    position before such date of enactment with respect to which the 
    State of West Virginia has paid to the Secretary of the Treasury the 
    sums prescribed pursuant to subsection (e)(1) of such section 218 at 
    the time or times established pursuant to such subsection (e)(1) if 
    and to the extent that--
            ``(A) no refund of the sums so paid has been obtained, or
            ``(B) a refund of part or all of the sums so paid has been 
        obtained but the State of West Virginia repays to the Secretary 
        of the Treasury the amount of such refund within ninety days 
        after the date that the modification is agreed to by the State 
        and the Secretary of Health, Education, and Welfare.''

    Section 143 of Pub. L. 92-603 provided that:
    ``(a) Notwithstanding the provisions of subsection (d)(5)(A) of 
section 218 of the Social Security Act [subsec. (d)(5)(A) of this 
section] and the references thereto in subsections (d)(1) and (d)(3) of 
such section 218 the agreement with the State of West Virginia 
heretofore entered into pursuant to such section 218 [this section] may, 
at any time prior to 1974, be modified pursuant to subsection (c)(4) of 
such section 218 so as to apply to services performed in policemen's or 
firemen's positions covered by a retirement system on the date of the 
enactment of this Act [Oct. 30, 1972] by individuals as employees of any 
class III or class IV municipal corporation (as defined in or under the 
laws of the State) if the State of West Virginia has at any time prior 
to the date of the enactment of this Act paid to the Secretary of the 
Treasury, with respect to any of the services performed in such 
positions by individuals as employees of such municipal corporation, the 
sums prescribed pursuant to subsection (e)(1) of such section 218. For 
purposes of this subsection, a retirement system which covers positions 
of policemen or firemen, or both, and other positions, shall, if the 
State of West Virginia so desires, be deemed to be a separate retirement 
system with respect to the positions of such policemen or firemen, or 
both, as the case may be.
    ``(b) Notwithstanding the provisions of subsection (f) of section 
218 of the Social Security Act, any modification in the agreement with 
the State of West Virginia under subsection (a) of this section, to the 
extent it involves services performed by individuals as employees of any 
class III or class IV municipal corporation, may be made effective with 
respect to--
        ``(1) all services performed by such individual, in any 
    policeman's or fireman's position to which the modification relates, 
    on or after the date of the enactment of this Act; and
        ``(2) all services performed by such individual in such a 
    position before such date of enactment with respect to which the 
    State of West Virginia has paid to the Secretary of the Treasury the 
    sums prescribed pursuant to subsection (e)(1) of such section 218 at 
    the time or times established pursuant to such subsection (e)(1), if 
    and to the extent that--
            ``(A) no refund of the sums so paid has been obtained, or
            ``(B) a refund of part or all of the sums so paid has been 
        obtained but the State of West Virginia repays to the Secretary 
        of the Treasury the amount of such refund within ninety days 
        after the date that the modification is agreed to by the State 
        and the Secretary of Health, Education, and Welfare.''


  Modification of Existing Agreement With State of New Mexico To Cover 
                       Certain Hospital Employees

    Section 127 of Pub. L. 92-603 provided that: ``Notwithstanding any 
provisions of section 218 of the Social Security Act [this section], the 
Agreement with the State of New Mexico heretofore entered into pursuant 
to such section may at the option of such State be modified at any time 
prior to the first day of the fourth month after the month in which this 
Act is enacted [October 1972], so as to apply to the services of 
employees of a hospital which is an integral part of a political 
subdivision to which an agreement under this section has not been made 
applicable, as a separate coverage group within the meaning of section 
218(b)(5) of such Act [subsec. (b)(5) of this section], but only if such 
hospital has prior to 1966 withdrawn from a retirement system which had 
been applicable to the employees of such hospital.''


Modification of Agreement With State of Louisiana With Respect to Voter 
                               Registrars

    Section 139 of Pub. L. 92-603 provided that:
    ``(a) Notwithstanding the provisions of section 218(g)(1) of the 
Social Security Act [subsec. (g)(1) of this section], the Secretary may, 
under such conditions as he deems appropriate, permit the State of 
Louisiana to modify its agreement entered into under section 218 of such 
Act [this section] so as to terminate the coverage of all employees who 
are in positions under the Registrars of Voters Employees' Retirement 
System, effective after December 1975, but only if such State files with 
him notice of termination on or before December 31, 1973.
    ``(b) If the coverage of such employees in positions under such 
retirement system is terminated pursuant to subsection (a), coverage 
cannot later be extended to employees in positions under such retirement 
system.''


Modification of Agreements With States With Respect to Certain Students 
                         and Part-Time Employees

    Section 141 of Pub. L. 92-603 provided that:
    ``(a) Notwithstanding any provision of section 218 of the Social 
Security Act [this section], the agreement with any State (or any 
modification thereof) entered into pursuant to such section may, at the 
option of such State, be modified at any time prior to January 1, 1974, 
so as to exclude either or both of the following;
        ``(1) service in any class or classes of part-time positions; or
        ``(2) service performed in the employ of a school, college, or 
    university if such service is performed by a student who is enrolled 
    and is regularly attending classes at such school, college, or 
    university.
    ``(b) Any modification of such agreement pursuant to this section 
shall be effective with respect to services performed after the end of 
the calendar quarter following the calendar quarter in which such 
agreement is modified.
    ``(c) If any such modification terminates coverage with respect to 
service in any class or classes of part-time positions in any coverage 
group, the Secretary of Health, Education, and Welfare and the State may 
not thereafter modify such agreement so as to again make the agreement 
applicable to service in such positions in such coverage group; if such 
modification terminates coverage with respect to service performed in 
the employ of a school, college, or university, by a student who is 
enrolled and regularly attending classes at such school, college, or 
university, the Secretary of Health, Education, and Welfare and the 
State may not thereafter modify such agreement so as to again make the 
agreement applicable to such service performed in the employ of such 
school, college, or university.''


 Modification of Agreement With State of Massachusetts With Respect to 
            Employees of the Massachusetts Turnpike Authority

    Section 124 of Pub. L. 90-248 provided that:
    ``(a) Notwithstanding the provisions of section 218(g)(1) of the 
Social Security Act [subsec. (g)(1) of this section] the Secretary may, 
under such conditions as he deems appropriate, permit the State of 
Massachusetts to modify its agreement entered into under section 218 of 
such Act [this section] so as to terminate the coverage of the employees 
of the Massachusetts Turnpike Authority effective at the end of any 
calendar quarter within the two years next following the date on which 
such agreement is so modified.
    ``(b) If the coverage of employees of the Massachusetts Turnpike 
Authority is terminated pursuant to subsection (a), coverage cannot 
later be extended to the employees of such Authority.''


  Modification of Agreements With States of North Dakota and Iowa With 
                       Respect to Certain Students

    Section 338 of Pub. L. 89-97 provided that: ``Notwithstanding any 
provision of section 218 of the Social Security Act [this section], the 
agreements with the States of North Dakota and Iowa entered into 
pursuant to such section may, at the option of the State, be modified so 
as to exclude service performed in any calendar quarter in the employ of 
a school, college, or university if such service is performed by a 
student who is enrolled and is regularly attending classes at such 
school, college, or university and if the remuneration for such service 
is less than $50. Any modification of either of such agreements pursuant 
to this Act shall be effective with respect to services performed after 
an effective date specified in such modification, except that such date 
shall not be earlier than the date of enactment of this Act [July 30, 
1965].''


   Modification of Agreement With State of Nebraska for Exclusion of 
       Services Performed by Justices of the Peace and Constables

    Section 102(i) of Pub. L. 86-778 provided that: ``Notwithstanding 
any provision of section 218 of the Social Security Act [this section], 
the agreement with the State of Nebraska entered into pursuant to such 
section may, at the option of such State, be modified so as to exclude 
services performed within such State by individuals as justices of the 
peace or constables, if such individuals are compensated for such 
services on a fee basis. Any modification of such agreement pursuant to 
this subsection shall be effective with respect to services performed 
after an effective date specified in such modification, except that such 
date shall not be earlier than the date of enactment of this Act [Sept. 
13, 1960].''


  Modification of Existing Agreement With State of California Prior to 
                              February 1966

    Section 102(k) of Pub. L. 86-778, as amended by Pub. L. 89-97, title 
III, Sec. 318, July 30, 1965, 79 Stat. 390; Pub. L. 99-514, Sec. 2, Oct. 
22, 1986, 100 Stat. 2095, provided that:
    ``(1) Notwithstanding any provision of section 218 of the Social 
Security Act [this section], the agreement with the State of California 
heretofore entered into pursuant to such section may at the option of 
such State be modified, at any time prior to 1962, pursuant to 
subsection (c)(4) of such section 218 [subsec. (c)(4) of this section], 
so as to apply to services performed by any individual who, on or after 
January 1, 1957, and on or before December 31, 1959, was employed by 
such State (or any political subdivision thereof) in any hospital 
employee's position which, on September 1, 1954, was covered by a 
retirement system, but which, prior to 1960, was removed from coverage 
by such retirement system if, prior to July 1, 1960, there have been 
paid in good faith to the Secretary of the Treasury, with respect to any 
of the services performed by such individual in any such position, 
amounts equivalent to the sum of the taxes which would have been imposed 
by sections 3101 and 3111 of the Internal Revenue Code of 1986 [formerly 
I.R.C. 1954] [sections 3101 and 3111 of Title 26, Internal Revenue Code] 
if such services had constituted employment for purposes of chapter 21 
of such Code [section 3101 et seq. of Title 26] at the time they were 
performed. Notwithstanding the provisions of subsection (f) of such 
section 218 such modification shall be effective with respect to (1) all 
services performed by such individual in any such position on or after 
January 1, 1960, and (2) all such services, performed before such date, 
with respect to which amounts equivalent to such taxes have, prior to 
the date of enactment of this subsection [Sept. 13, 1960], been paid.
    ``(2) Such agreement, as modified pursuant to paragraph (1), may at 
the option of such State be further modified, at any time prior to the 
seventh month after the month [July 1965] in which this paragraph is 
enacted, so as to apply to services performed for any hospital affected 
by such earlier modification by any individual who after December 31, 
1959, is or was employed by such State (or any political subdivision 
thereof) in any position described in paragraph (1). Such modification 
shall be effective with respect to (A) all services performed by such 
individual in any such position on or after January 1, 1962, and (B) all 
such services, performed before such date, with respect to which amounts 
equivalent to the sum of the taxes which would have been imposed by 
sections 3101 and 3111 of the Internal Revenue Code of 1986 [sections 
3101 and 3111 of Title 26] if such services had constituted employment 
for purposes of chapter 21 of such Code at the time they were performed 
have, prior to the date of the enactment of this paragraph [July 30, 
1965], been paid.''


 Modification of Existing Agreement With State of Oklahoma Prior to 1962

    Section 3 of Pub. L. 86-284 provided that: ``Notwithstanding the 
provisions of subsection (d)(5)(A) of section 218 of the Social Security 
Act [subsec. (d)(5)(A) of this section] and the references thereto in 
subsections (d)(1) and (d)(3) of such section 218, the agreement with 
the State of Oklahoma heretofore entered into pursuant to such section 
218 [this section] may, at any time prior to 1962, be modified pursuant 
to subsection (c)(4) of such section 218 so as to apply to services 
performed by any individual employed by such State (or any political 
subdivision thereof) in any policeman's position covered by a retirement 
system in effect on the date of enactment of this Act [Sept. 16, 1959] 
if (1) in the case of an individual performing such services on such 
date, such individual is ineligible to become a member of such 
retirement system, or, in the case of an individual who prior to such 
date has ceased to perform such services, such individual was, on the 
last day he did perform such services, ineligible to become a member of 
such retirement system, and (2) such State has, prior to 1959, paid to 
the Secretary of the Treasury, with respect to any of the services 
performed by such individual in any such position, the sums prescribed 
pursuant to subsection (e)(1) of such section 218. Notwithstanding the 
provisions of subsection (f) of such section 218, such modification 
shall be effective with respect to (i) all services performed by such 
individual in any such position on or after the date of enactment of 
this Act, and (ii) all such services, performed before such date, with 
respect to which such State has paid to the Secretary of the Treasury 
the sums prescribed pursuant to subsection (e) of such section 218, at 
the time or times established pursuant to such subsection.''


Modification of Existing Agreement With State of Maine Prior to July 1, 
                                  1967

    Section 316 of Pub. L. 85-840, as amended by Pub. L. 86-778, title 
I, Sec. 102(j), Sept. 13, 1960, 74 Stat. 935; Pub. L. 88-350, Sec. 1, 
July 2, 1964, 78 Stat. 240; Pub. L. 89-97, title III, Sec. 337, July 30, 
1965, 79 Stat. 409, eff. July 1, 1965, provided that: ``For the purposes 
of any modification which might be made after the date of enactment of 
this Act [Aug. 28, 1958] and prior to July 1, 1967, by the State of 
Maine of its existing agreement made under section 218 of the Social 
Security Act [this section], any retirement system of such State which 
covers positions of teachers and positions of other employees shall, if 
such State so desires, be deemed (notwithstanding the provisions of 
subsection (d) of such section) to consist of a separate retirement 
system with respect to the positions of such teachers and a separate 
retirement system with respect to the positions of such other employees; 
and for the purposes of this sentence, the term `teacher' shall mean any 
teacher, principal, supervisor, school nurse, school dietitian, school 
secretary or superintendent employed in any public school, including 
teachers in unorganized territory.''


     Modification of Existing Agreements With States of California, 
          Connecticut, Minnesota, or Rhode Island Prior to 1960

    Section 2 of Pub. L. 85-227 provided that: ``Notwithstanding 
subsection (f) of section 218 of the Social Security Act [subsec. (f) of 
this section], any modification of the agreement with the State of 
California, Connecticut, Minnesota, or Rhode Island under such section 
which makes such agreement applicable to services performed in positions 
covered by a separate retirement system created pursuant to the fourth 
sentence of subsection (d)(6) of such section (and consisting of the 
positions of members who desire coverage under the agreement) may, if 
such modification is agreed to prior to 1960, be made effective with 
respect to services performed in such positions after an effective date 
specified in such modification, except that in no case may such date be 
earlier than December 31, 1955.''


Modification of Existing Agreements With States of Florida, Nevada, New 
Mexico, Minnesota, Oklahoma, Pennsylvania, Texas, Washington, or Hawaii 
                          Prior to July 1, 1962

    Section 104(f) of act Aug. 1, 1956, as amended by Pub. L. 86-284, 
Sec. 1, provided that: ``Notwithstanding the provisions of subsection 
(d) of section 218 of the Social Security Act [subsection (d) of this 
section], any agreement under such section entered into prior to the 
date of enactment of this Act [Aug. 1, 1956] by the State of Florida, 
Nevada, New Mexico, Minnesota, Oklahoma, Pennsylvania, Texas, 
Washington, or the Territory of Hawaii shall if the State or Territory 
concerned so requests, be modified prior to July 1, 1962, so as to apply 
to services performed by employees of the respective public school 
districts of such State or Territory who, on the date such agreement is 
made applicable to such services, are not in positions the incumbents of 
which are required by State or Territorial law or regulation to have 
valid State or Territorial teachers' or administrators' certificates in 
order to receive pay for their services. The provisions of this 
subsection shall not apply to services of any such employees to which 
any such agreement applies without regard to this subsection.''


   Modification of Existing Agreement With State of Arizona Prior to 
                             January 1, 1956

    Section 101(k) of act Sept. 1, 1954, provided that: ``If, prior to 
January 1, 1956, the agreement with the State of Arizona entered into 
pursuant to section 218 of the Social Security Act [this section] is 
modified pursuant to subsection (d)(3) of such section so as to apply to 
service performed by employees in positions covered by the Arizona 
Teachers' Retirement System the modification may, notwithstanding 
section 218(f) of the Social Security Act, be made effective with 
respect to service performed in such positions after an effective date 
specified in the modification, but in no case may such effective date be 
earlier than December 31, 1950. For the purposes of any such 
modification, all employees in positions covered by the Arizona 
Teachers' Retirement System shall be deemed, notwithstanding the 
provisions of section 218(d)(6) of such Act, to constitute a separate 
coverage group.''


         Extension of Coverage to Service in Firemen's Position

    Section 120(b) of Pub. L. 90-248 provided that: ``Nothing in the 
amendments made by subsection (a) [amending this section] shall 
authorize the extension of the insurance system established by title II 
of the Social Security Act [this subchapter] under the provisions of 
section 218(d)(6)(C) of such Act [subsec. (d)(6)(C) of this section] to 
service in any fireman's position.''


   Validation of Coverage for Certain Firemen in the State of Nebraska

    Section 119(b) of Pub. L. 90-248, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``In any case in 
which--
        ``(1) an individual has performed services prior to the 
    enactment of this Act [Jan. 2, 1968] in the employ of a political 
    subdivision of the State of Nebraska in a fireman's position, and
        ``(2) amounts, equivalent to the sum of the taxes which would 
    have been imposed by sections 3101 and 3111 of the Internal Revenue 
    Code of 1986 [formerly I.R.C. 1954] [sections 3101 and 3111 of Title 
    26, Internal Revenue Code] had such services constituted employment 
    for purposes of section 21 of such Code [section 21 of Title 26] at 
    the time they were performed, were timely paid in good faith to the 
    Secretary of the Treasury, and
        ``(3) no refunds of such amounts paid in lieu of taxes have been 
    obtained,
the amount of the remuneration for such services with respect to which 
such amounts have been paid shall be deemed to constitute remuneration 
for employment as defined in section 209 of the Social Security Act 
[section 409 of this title].''


 Validation of Coverage for Certain Employees of an Integral Unit of a 
                     Political Subdivision of Alaska

    Section 342 of Pub. L. 89-97 provided that: ``For purposes of the 
agreement under section 218 of the Social Security Act [this section] 
entered into by the State of Alaska, or its predecessor the Territory of 
Alaska, where employees of an integral unit of a political subdivision 
of the State or Territory of Alaska have in good faith been included 
under the State or Territory's agreement as a coverage group on the 
basis that such integral unit of a political subdivision was a political 
subdivision, then such unit of the political subdivision shall, for 
purposes of section 218(b)(2) of such Act, be deemed to be a political 
subdivision, and employees performing services within such unit shall be 
deemed to be a coverage group, effective with the effective date 
specified in such agreement or modification of such agreement with 
respect to such coverage group and ending with the last day of the year 
in which this Act is enacted [1965].''


Validation of Coverage for District Engineering Aides of Soil and Water 
                   Conservation Districts of Oklahoma

    Pub. L. 88-650, Sec. 3, Oct. 13, 1964, 78 Stat. 1077, provided that: 
``For purposes of the agreement under section 218 of the Social Security 
Act [this section] entered into by the State of Oklahoma, remuneration 
paid to district engineering aides of soil and water conservation 
districts of the State of Oklahoma which was reported by the State as 
amounts paid to such aides as employees of the State for services 
performed by them during the period beginning January 1, 1951, and 
ending with the close of June 30, 1962, shall be deemed to have been 
paid to such aides for services performed by them in the employ of the 
State.''


 Validation of Coverage for Certain Employees of an Integral Unit of a 
                    Political Subdivision of Arkansas

    Section 1 of Pub. L. 87-878 provided: ``That, for purposes of the 
agreement under section 218 of the Social Security Act [this section] 
entered into by the State of Arkansas, where employees of an integral 
unit of a political subdivision of the State of Arkansas have in good 
faith been included under the State's agreement as a coverage group on 
the basis that such integral unit of a political subdivision was a 
political subdivision, then such unit of the political subdivision 
shall, for purposes of section 218(b)(2) of such Act, be deemed to be a 
political subdivision, and employees performing services within such 
unit shall be deemed to be a coverage group, effective with the 
effective date specified in such agreement or modification of such 
agreement with respect to such coverage group and ending with the last 
day of the year in which this Act is enacted [1962].''


         Validation of Coverage for Certain Mississippi Teachers

    Section 102(h) of Pub. L. 86-778 provided that: ``For purposes of 
the agreement under section 218 of the Social Security Act [this 
section] entered into by the State of Mississippi, services of teachers 
in such State performed after February 28, 1951, and prior to October 1, 
1959, shall be deemed to have been performed by such teachers as 
employees of the State. The term `teacher' as used in the preceding 
sentence means--
        ``(1) any individual who is licensed to serve in the capacity of 
    teacher, librarian, registrar, supervisor, principal, or 
    superintendent and who is principally engaged in the public 
    elementary or secondary school system of the State in any one or 
    more of such capacities;
        ``(2) any employee in the office of the county superintendent of 
    education or the county school supervisor, or in the office of the 
    principal of any county or municipal public elementary or secondary 
    school in the State; and
        ``(3) any individual licensed to serve in the capacity of 
    teacher who is engaged in any educational capacity in any day or 
    night school conducted under the supervision of the State department 
    of education as a part of the adult education program provided for 
    under the laws of Mississippi or under the laws of the United 
    States.''


 Presumption of Work Deductions for Services Performed Prior to 1955 in 
       Case of Certain Retroactive State Agreements; Recomputation

    Section 101(l) of act Sept. 1, 1954, provided that:
    ``(1) In the case of any services performed prior to 1955 to which 
an agreement under section 218 of the Social Security Act [this section] 
was made applicable, deductions which--
        ``(A) were not imposed under section 203 of such Act [section 
    403 of this title] with respect to such services performed prior to 
    the date the agreement was agreed to or, if the original agreement 
    was not applicable to such services, performed prior to the date the 
    modification making such agreement applicable to such services was 
    agreed to, and
        ``(B) would have been imposed under such section 203 had such 
    agreement, or modification, as the case may be, been agreed to on 
    the date it became effective,
shall be deemed to have been imposed, but only for purposes of section 
215(f)(2)(A) or section 215(f)(4)(A) of such Act [section 415(f)(2)(A) 
or section 415(f)(4)(A) of this title] as in effect prior to the 
enactment of this Act [Sept. 1, 1954]. An individual with respect to 
whose services the preceding sentence is applicable, or in the case of 
his death, his survivors entitled to monthly benefits under section 202 
of the Social Security Act [section 402 of this title] on the basis of 
his wages and self-employment income, shall be entitled to a 
recomputation of his primary insurance amount under such section 
215(f)(2)(A) or section 215(f)(4)(A), as the case may be, if the 
conditions specified therein are met and if, with respect to a 
recomputation under such section 215(f)(2)(A), such individual files the 
application referred to in such section after August 1954 and prior to 
January 1956 or, with respect to a recomputation under such section 
215(f)(4)(A), such individual died prior to January 1956 and any of such 
survivors entitled to monthly benefits files an application, in addition 
to the application filed for such monthly benefits, for a recomputation 
under such section 215(f)(4)(A).
    ``(2) For purposes of a recomputation made by reason of paragraph 
(1) of this subsection, the primary insurance amount of the individual 
who performed the services referred to in such paragraph shall be 
computed under subsection (a)(2) of section 215 of the Social Security 
Act, as amended by this Act (but, for such purposes, without application 
of subsection (d)(4) of such section, as in effect prior to the 
enactment of this Act or as amended by this Act) and as though he became 
entitled to old-age insurance benefits in whichever of the following 
months yields the highest primary insurance amount:
        ``(A) the month following the last month for which deductions 
    are deemed, pursuant to paragraph (1) of this subsection, to have 
    been made; or
        ``(B) the first month after the month determined under 
    subparagraph (A) (and prior to September 1954) in which his benefits 
    under section 202(a) of the Social Security Act [section 402(a) of 
    this title] were no longer subject to deductions under section 
    203(b) of such Act [section 403(b) of this title]; or
        ``(C) the first month after the last month (and prior to 
    September 1954) in which his benefits under section 202(a) of the 
    Social Security Act were subject to deductions under section 203(b) 
    of such Act; or
        ``(D) the month in which such individual filed his application 
    for recomputation referred to in paragraph (1) of this subsection 
    or, if he died without filing such application and prior to January 
    1, 1956, the month in which he died, and in any such case (but, if 
    the individual is deceased, only if death occurred after August 
    1954) the amendments made by subsections (b)(1), (e)(1) and 
    (e)(3)(B) of section 102 of this Act [amending section 415 of this 
    title] shall be applicable.
Such recomputation shall be effective for and after the month in which 
the application required by paragraph (1) of this subsection is filed. 
The provisions of this subsection shall not be applicable in the case of 
any individual if his primary insurance amount has been recomputed under 
section 215(f)(2) of the Social Security Act on the basis of an 
application filed prior to September 1954.
    ``(3) If any recomputation under section 215(f) of the Social 
Security Act is made by reason of deductions deemed pursuant to 
paragraph (1) of this subsection to have been imposed with respect to 
benefits based on the wages and self-employment income of any 
individual, the total of the benefits based on such wages and self-
employment income for months for which such deductions are so deemed to 
have been imposed shall be recovered by making, in addition to any other 
deductions under section 203 of such Act, deductions from any increase 
in benefits, based on such wages and self-employment income, resulting 
from such recomputation.''

                  Section Referred to in Other Sections

    This section is referred to in sections 402, 405, 405a, 410, 411, 
424a of this title; title 26 sections 1402, 3121, 6413, 6511.
