Virginia Code 51.1-702: Federal-state agreement
A. The state social security administrator, with the approval of the Governor, is hereby authorized to enter on behalf of the Commonwealth into an agreement with the federal agency to extend the benefits of the Social Security Act to employees of the Commonwealth and any political subdivision thereof, with respect to services specified in the agreement, which constitute employment. The agreement may contain such provisions relating to coverage, benefits, effective date, modification of the agreement, administration, and other appropriate provisions as the state social security administrator and federal agency shall agree upon, but, except as may be otherwise required by applicable federal law as to the services to be covered, the agreement shall provide in effect that:
Terms Used In Virginia Code 51.1-702
- Agreement: means the federal-state agreement between the federal agency and the Commonwealth entered into on February 16, 1952, as authorized by this chapter, for the purpose of extending coverage under the Social Security Act and any subsequent modifications thereto. See Virginia Code 51.1-700
- Applicable federal law: refers to provisions of federal law, including federal regulations and requirements issued pursuant thereto, that provide for extending the benefits of the Social Security Act and the Federal Insurance Contributions Act to employees of states and their political subdivisions. See Virginia Code 51.1-700
- Board: means the Board of Trustees of the Virginia Retirement System. See Virginia Code 51.1-700
- City: means an independent incorporated community which became a city as provided by law before noon on July 1, 1971, or which has within defined boundaries a population of 5,000 or more and which has become a city as provided by law. See Virginia Code 1-208
- Employer: means the Commonwealth or a political subdivision thereof, as defined in this chapter. See Virginia Code 51.1-700
- Employment: means employment as defined in the Social Security Act as modified under the terms of the agreement and pursuant to the authority granted the state social security administrator under § Virginia Code 51.1-700
- Federal agency: means the federal officer, department, or agency charged on behalf of the federal government with the particular federal functions referred to in this chapter in connection with such term. See Virginia Code 51.1-700
- Federal Insurance Contributions Act: means subchapters A and B of Chapter 21 of the Internal Revenue Code of 1986, as amended. See Virginia Code 51.1-700
- Modification: means an amendment to the original agreement to modify coverage for coverage groups or to extend coverage to additional coverage groups consistent with the provisions of Section 218 of the Social Security Act and this chapter. See Virginia Code 51.1-700
- Plan of agreement: means an agreement between the state social security administrator and an employer for the purpose of extending the benefits of the Social Security Act to coverage groups within its employ. See Virginia Code 51.1-700
- Political subdivision: includes an instrumentality of the Commonwealth or one or more of its political subdivisions, or of the Commonwealth and one or more of its political subdivisions, but only if such instrumentality is a juristic entity which is legally separate and distinct from the Commonwealth or a political subdivision and only if its employees are not by virtue of their relation to such juristic entity employees of the Commonwealth or a political subdivision. See Virginia Code 51.1-700
- Social Security Act: means the act of Congress approved August 14, 1935, Chapter 531, 49 Statutes 620, officially cited as the "Social Security Act" as such act has been and may be amended. See Virginia Code 51.1-700
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
- State social security administrator: means the Director of the Virginia Retirement System. See Virginia Code 51.1-700
- Wages: means all remuneration for employment, including the cash value of all remuneration paid in any medium other than cash, except that part of such remuneration which, even if it were paid for "employment" within the meaning of the Federal Insurance Contributions Act, would not constitute "wages" within the meaning of that act. See Virginia Code 51.1-700
1. Benefits shall be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though such services constituted employment within the meaning of the Social Security Act.
2. The employer shall pay to the Internal Revenue Service, at the time prescribed by applicable federal law, contributions with respect to wages equal to the applicable taxes which would be imposed by the “Rate of Tax” sections of the Federal Insurance Contributions Act if the services covered by the agreement constituted employment within the meaning of that act.
3. All services which constitute employment and are performed in the employ of the Commonwealth by state employees shall be covered by the agreement.
4. All services which (i) constitute employment, (ii) are performed in the employ of a political subdivision, and (iii) are covered by a plan of agreement which is in conformity with the terms of the agreement and has been approved by the state social security administrator, shall be covered by the agreement. Services rendered in the employ of a county, city, or other school board shall be covered by the agreement on the effective date specified therein not prior to January 1, 1951.
5. A political subdivision which is operating under a retirement system which it finances may continue the same or may apply for coverage of its employees under the agreement, or both.
B. The state social security administrator, with the approval of the Board, is authorized to submit and agree to modifications to the agreement relating to coverage, benefits effective dates, administration, and other appropriate provisions as the state social security administrator and the federal agency may agree upon.
1952, c. 2, § 51-111.3; 1956, c. 561; 1980, c. 647; 1984, c. 430; 1990, c. 832; 2005, c. 902.