Social Security Administration - Coverage

Coverage

The SSA's coverage under the Social Security Acts originally covered nearly all workers in the continental U.S. and the territories of Alaska, Hawaii, Guam and the Commonwealth of the Northern Marianas Islands below the age of 65. All workers in interstate commerce and industry were required to enter the program, except railroad, state and local government workers. In 1939, the age restriction for entering Social Security was eliminated.

Railroad workers were covered by the Railroad Retirement Board before Social Security was founded; they still are, though a portion of each railroad pension is designated as "equivalent" to Social Security. Railroad workers also participate in Medicare.

Most state and local government workers were eventually brought into the Social Security system under "Section 218 Agreements". The original 218 interstate instrumentalities were signed in the 1950s. All states have a Section 218 agreement with the Federal government's Social Security Administration. For more information see Chapter 10 of this Social Security Handbbook. This July 8, 2004 Social Security Handbook chapter 10, section 1002.1 defines what is an "interstate instrumentality. The provisions of Section 218 of the Social Security Act and the instrumentalities agreement and subsequent modifications determine Social Security and Medicare benefits or Medicare-only coverage for state and local government employees enrolled in state and local government retirement systems. To learn more about 218 status or inquire about it from an official verifiable source, contact the Social Security office or representative nearest to the request, or visit the official Social Security website Also the national "1-800" line, 1-800-772-1213 can help to direct you to information. A list of physical Social Security offices and administrators is maintained on-line at All State and local government employees hired since 1986, or who are covered by section 218 agreements, participate in Medicare even if not covered by Social Security financial benefits. How State And Local Government Employees are covered By Social Security And Medicare see The Federal-State reference guide appendix Other local and state employees were brought into coverage under a 1991 Social Security law that required these employees to join Social Security if their employer did not provide them with a pension plan. Some state and local governments continue to maintain pension plans and have not executed Section 218 agreements; if so, those workers may not participate in Social Security taxation. (If workers have previously paid appropriate Social Security taxation or an equivalent, their Social Security benefits are reduced by a rule known as the Windfall Elimination Provision; there is also a similar Government Pension Offset for their spouses.)