Federal-state and interstate agreements.

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(1) The department, with the approval of the governor, is authorized to enter on behalf of the state into an agreement with the secretary, consistent with the terms and provisions of this article, for the purpose of extending the benefits of the federal old-age, survivors', disability, and health insurance system to employees of political subdivisions thereof with respect to services specified in such agreement which constitutes employment, as defined in section 24-53-101. Such agreement may contain provisions relating to coverage, benefits, contributions, effective date, modification, and termination of the agreement, administration, and other appropriate provisions as the department and secretary agree upon, but, except as may be otherwise required by or pursuant to the social security act as to the services to be covered, such agreement shall provide in effect that:

  1. Benefits will be provided for employees, and their dependents and survivors, whoseservices are covered by the agreement on the same basis as though such services constituted employment within the meaning of Title II of the social security act;

  2. The state will pay to the United States secretary of the treasury, at such times as maybe prescribed by the social security act, contributions with respect to wages, as defined in section 24-53-101, equal to the sum of the taxes which would be imposed by the federal insurance contributions act if the services covered by the agreement constituted employment within the meaning of that act;

  3. Such agreement shall be effective with respect to services in employment, covered bythe agreement, performed after December 31, 1950, but in no event shall it be effective with respect to any such services performed prior to the first day of the calendar year in which such agreement is entered into or in which the modification of the agreement making it applicable to such services is entered into; except that, in the case of an agreement or a modification of an agreement made prior to January 1, 1955, if the date specified in section 218 (f) of the social security act, as amended, is not in conflict with such date, such agreement or modification may be made effective as of January 1, 1951, or as of the first day of any intervening calendar quarter; except that such effective date may be made retroactive to the extent permitted by section 218 (f) of the social security act, as amended;

  4. All services which constitute employment, as defined in section 24-53-101, and areperformed in the employ of the covered political subdivision shall be covered by the agreement, except as to those employees of political subdivisions not coming within the provisions of this article;

  5. All services which constitute employment, as defined in section 24-53-101, are performed in the employ of a political subdivision of the state, and are covered by a plan which is in conformity with the terms of the agreement and has been approved by the department pursuant to the provisions of section 24-53-104 shall be covered by the agreement.

(2) Any instrumentality jointly created by this state and any other state is hereby authorized, upon the granting of like authority by such other state:

  1. To enter into an agreement with the secretary whereby the benefits of the federal oldage, survivors', disability, and health insurance system shall be extended to employees of such instrumentality;

  2. To require its employees to pay and for that purpose to deduct from their wagescontributions equal to the amounts which they would be required to pay pursuant to the provisions of section 24-53-103 (1) if they were covered by an agreement made pursuant to subsection (1) of this section; and

  3. To make payments to the United States secretary of the treasury in accordance withsuch agreement, including payments from its own funds, and otherwise to comply with such agreements. Such agreement shall, to the extent practicable, be consistent with the terms and provisions of subsection (1) of this section and other provisions of this article.

Source: L. 87: Entire article added, p. 1079, § 2, effective July 1.


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