Last edited by Malagore
Sunday, July 19, 2020 | History

3 edition of Social security and medicare coverage of employees of state and local governments found in the catalog.

Social security and medicare coverage of employees of state and local governments

David Koitz

Social security and medicare coverage of employees of state and local governments

current law

by David Koitz

  • 328 Want to read
  • 25 Currently reading

Published by Congressional Research Service, Library of Congress in Washington, D.C .
Written in English

    Subjects:
  • Social security -- Law and legislation -- United States -- States,
  • Medicare -- Law and legislation,
  • State governments -- officials and employees,
  • Local officials and employees -- United States

  • Edition Notes

    Statementby David Koitz
    SeriesReport (Library of Congress. Congressional Research Service) -- no. 85-937 EPW, Major studies and issue briefs of the Congressional Research Service -- 1985-1986, reel 8, fr. 000811
    ContributionsLibrary of Congress. Congressional Research Service
    The Physical Object
    FormatMicroform
    Pagination3 p.
    ID Numbers
    Open LibraryOL15454583M

    Social Media: If you share our content on Facebook, Twitter, or other social media accounts, we may track what content you share. This helps us improve our social media outreach. Selecting OFF will block this tracking. On Off: Web Analytics: We use a variety of tools to count, track, and analyze visits to   Currently, employers and employees each pay percent of wages up to $, for Social Security and percent of wages for Medicare, with no cap. Short-run deferral In the short run, Trump also said employers would not have to collect Social Security payroll taxes from workers making less than about $, annually, apparently from.

    Conversely, some people may not qualify for Social Security retirement credits, such as federal employees hired before , railroad employees with more than 10 years of service, and employees of some state and local governments. Other factors may be used to determine their eligibility for premium-free Medicare Part A.   Column: Trump’s budget proposal shreds Social Security and Medicaid benefits President Trump at the White House last week. His budget proposal for was released Monday.

      Social Security covers about 96 percent of all U.S. workers; the vast majority of the rest are state, local, and federal government employees. While these noncovered workers do not pay Social Security taxes on their government earnings, they may still be eligible for Social Security benefits. This poses difficult issues of fairness, and Social Security has provisions that attempt to address. A. No. He’ll be eligible for Medicare and receive Part A free of premiums because after the beginning of , when new rules for federal employees were introduced, he paid payroll taxes for Medicare. So even though he doesn’t qualify for Social Security retirement benefits, he’ll be good to go with Medicare when he reaches


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Social security and medicare coverage of employees of state and local governments by David Koitz Download PDF EPUB FB2

State and local government employees may be covered for Social Security and Medicare either by mandatory coverage, or under a Section Agreement between the state and the Social Security Administration. Under some circumstances, an employee may be excluded from Social Security or Medicare, or both.

State and local governments may also get Medicare coverage for workers not covered by Social Security who have been continuously employed by the same state or local governmental employer since before April 1, Workers covered by a Section agreement automatically have both Social Security and Medicare.

State and local government File Size: KB. The Social Security and Medicare coverage provisions for State and local government employees are complex and unique.

To administer the State and local coverage program requires the knowledge and understanding of Section Agreements, the mandatory Social Security and Medicare coverage provisions under the Federal Insurance Contributions Act.

Since it was created inSocial Security has grown from covering about half of the work force to covering nearly all workers. The largest remaining exempted group is a subset of state.

Federal-State Reference Guide - Social Security and Medicare coverage for state and local governments, IRS/SSA. N ational Conference of State Social Security Administrators (NCSSSA) Mandatory Social Security of State and Local Public Employees: Establishing the Facts, Coalition to Preserve Retirement Security, September Proposals to mandate Social Security coverage for all state and local government employees hired in the future have been part of the Social Security policy debate for many years.

Under such a proposal, all state and local government positions eventually would be covered by Social Security.

Social Security Act ofstate and local government employees were excluded from Social Security coverage because of unresolved legal questions about the federal government’s authority to impose taxes on state and local governments.

These agreements, referred to as Section Agreements, are written voluntary agreement between a State and the Social Security Administration (SSA) to provide Social Security and Medicare Hospital Insurance (HI) or Medicare coverage only for employees of State and local governments.

According to the Social Security Administration, Medicare coverage is mandatory at age 65 only for employees of state and local governments who were hired or rehired after Ma Exclusions do apply under Section (p) of the Social Security Act. More than 90 percent of U.S.

wage earners are covered by Social Security, meaning they pay into the Social Security system via payroll or self-employment taxes. But there are groups of “non-covered” employees. These include: Some state, county and municipal employees, who are covered by state-funded pension plans rather than Social Security.

Social Security and Public Employees. When the federal Social Security Act began inpublic employees were not eligible for Social Security benefits. This was due to a constitutional question regarding the federal government’s power to tax state and local governments.

Consequently, many government employees were without a retirement plan. You must submit Form CMS (not available online) to the Social Security Administration (SSA). Visit or call the SSA () to get this form.

You’ll need to have a personal interview with Social Security before you can terminate your Medicare Part B coverage. To schedule your interview, call the SSA or your local Social Security.

Most state and local government employees are eligible for Social Security benefits as a result of Section agreements that their state or local government entered into with the Social Security Administration. Social Security benefits were also extended to state and local government employees not covered by Section agreements in July under federal law.

Get this from a library. Social Security and Medicare coverage of employees of state and local governments. [David Koitz; Geoffrey Kollmann; Library of Congress. Congressional Research Service.]. If the company you work for has more than 20 employees, you have creditable coverage for Medicare.

The same is true when you’re on your spouse’s large employer group health plan. An employer with small group insurance is a company with less than 20 employees.

Small group plans may not be considered creditable coverage under Medicare. While Social Security and Medicare coverage of state and local employees is now mandatory in many instances under federal law, that was not always the case. Historically, if a state or local government wanted to extend Social Security and Medicare coverage to employees, they had to do so via a Agreement.

In Kansas, while many of these. To see 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 Social Security law that required these employees to join Social Security if their employer did not provide them with a pension plan.

As the baby boomers move into their retirement years, tax and financial professionals are likely to encounter questions from their clients about Social Security and Medicare.

The Social Security and Medicare Quickfinder Handbook is an affordable, easy-to. In the same way as federal employees were moved to the Social Security system inso, too, for state and local public employees to be moved into Social Security should not be a.

Monitor for State and local proposed legislation that could potentially affect the Social Security, Medicare, and retirement system coverage of government employees.

The U.S. Internal Revenue Service has identified significant risk areas for state and local governments’ compliance with federal laws associated with Social Security, Medicare, public pension plans, and employment taxes.Social Security coverage is available to state and local government employees through a unique voluntary federal-state agreement authorized by Section of the Social Security Act.

Employees covered under a Section Agreement have the same coverage and benefit rights as employees mandatorily covered for Social Security and Medicare.Social Security Disability Insurance (SSDI) is for people who have become disabled after earning enough Social Security work credits within a certain time.

Supplemental Security Income (SSI) is for people with disabilities or who are 65 or older with little to no income and resources.