[OSSSA218] Social Security, PERS and State and local government positions

[Karen PARK]

Just a short refresher note...........

Remember not all State and local government positions are subject to Social Security and Medicare withholdings.

In the State of Oregon the majority of positions are covered for both Social Security and Medicare under Section 218 agreements, also known as Voluntary coverage. There are however, some PERS employers who do not have a Section 218 coverage agreement. These employers then fall under Section 210 coverage or Mandatory coverage. Mandatory coverage applies to all positions not covered under Section 218 and those not covered by a retirement system meeting the definition of a retirement system for purposes of Section 210, unless otherwise excluded by Federal Law or optional exclusions. 

A list of PERS employers which do not hold a Section 218 Social Security modification is attached.

I've attached a list of useful links pertaining to State and local government Social Security coverage. Note if you are an employer with employees who are not subject to Social Security withholdings you should have the employees sign a Form SSA-1945 at hire, which is a disclosure form. This form should be kept in the employees file along with being sent to the retirement plan. 

The State of Oregon has elected to mandatorily exclude the following from their Section 218 agreements. 

Student employees - Modification 602
Election Officials and Election Workers - Modification 596

The entities holding a Section 218 Modification to the State's Section 218 Agreement have two optional exclusions to chose from at the time of the agreement. 

1. All services in any class or classes of elective positions.
2. All services performed by employes working in part-time positions on a retainer basis paid by regular stipend at least monthly.

These do not apply to all Section 218 employers.

Section 218 Agreements may be requested by calling or sending me an e-mail........503 603-7633 or karen.park at state.or.us

Please do not hesitate to call should you have questions.

Have a great evening.


Karen Park

Oregon State Social Security Coordinator
Oregon PERS
503 603-7633
karen.park at state.or.us

SL2

Please note my office hours are Monday thru Thursday 6 am to 4:30 pm
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