COVERAGE OF CERTAIN EMPLOYEES UNDER THE FEDERAL SOCIAL SECURITY ACT

M.G.L. pt. Part I, tit. Title XVII, ch. c. 118C

in effect

M.G.L. c. 118C, § 1 Declaration of policy

c. 118C, § 1. Declaration of policy Section 1. In order to extend to employees of instrumentalities, and to the dependents and survivors of such employees, the basic protection accorded to others by the old age and survivors insurance system embodied in the Social Security Act, it is hereby declared to be the policy of the general court, subject to the limitations of this chapter, that such steps be taken as to provide such protection to employees of instrumentalities on as broad a basis as is permitted under the Social Security Act.

M.G.L. c. 118C, § 2 Definitions

c. 118C, § 2. Definitions Section 2. For the purposes of this chapter— (a) The term ''wages'' means all remuneration for employment as defined herein, including the cash value of all remuneration paid in any medium other than cash, except that such term shall not include that part of such remuneration which, even if it were for ''employment'' within the meaning of the Federal Insurance Contributions Act, would not constitute ''wages'' within the meaning of that act; (b) The term ''employment'' means any service performed by an employee in the employ of any instrumentality, for such employer, except (1) service which in the absence of an agreement entered into under this chapter would constitute ''employment'' as defined in the Social Security Act; or (2) service which under the Social Security Act may not be included in an agreement between the commonwealth and the Federal Security Administrator entered into under this chapter; (c) The term ''employee'' includes an officer of an instrumentality; (d) The term ''state agency'' means the state board of retirement, as defined in section eighteen of chapter ten; (e) The term ''Federal Security Administrator'' includes any individual to whom the Federal Security Administrator has delegated any of his functions under the Social Security Act with respect to coverage under such act of employees of states and their political subdivisions; (f) The term ''instrumentality'' means an authority or agency of the commonwealth or of one or more of its political subdivisions, or of the commonwealth and one or more of its political subdivisions, which is a juristic entity which is legally separate and distinct from the commonwealth or subdivision, and whose employees are not by virtue of their relation to such juristic entity employees of the commonwealth or subdivision; (g) The term ''Social Security Act'' means the Act of Congress approved August fourteenth, nineteen hundred and thirty-five, chapter five hundred and thirty-one, 49 Stat. 620, cited as the ''Social Security Act'', including regulations and requirements issued pursuant thereto, as such act has been and may from time to time be amended; and (h) The term ''Federal Insurance Contributions Act'' means subchapter A of chapter nine of the Federal Internal Revenue Code.

M.G.L. c. 118C, § 3 Agreement with Federal Security Administrator; extension of benefits; provisions

c. 118C, § 3. Agreement with Federal Security Administrator; extension of benefits; provisions Section 3. (a) The state agency, with the approval of the governor, is hereby authorized to enter on behalf of the commonwealth into an agreement with the Federal Security Administrator, consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old age and survivors insurance system to employees of instrumentalities, with respect to services specified in such agreement which constitute ''employment'' as defined in section two. Such agreement may contain such provisions relating to coverage, benefits, contributions, effective date, modification and termination of the agreement, administration and other appropriate provisions as the state agency and the Federal Security Administrator shall agree upon, but, except as may be otherwise required by or under 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 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 Title II of the Social Security Act; (2) The commonwealth will pay to the Secretary of the Treasury, at such time or times as may be prescribed under the Social Security Act, contributions with respect to wages as defined in section two equal to the sum of the taxes which would be imposed by sections fourteen hundred and fourteen hundred and ten of 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 by the agreement performed after a date specified therein, but in no event may 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; and (4) All services which constitute employment as defined in section two, are performed in the employ of an instrumentality, and are covered by a plan which is in conformity with the terms of the agreement and has been approved by the state agency under section four, shall be covered by the agreement. (b) Any instrumentality jointly created by the commonwealth and any other state or states is hereby authorized, upon the granting of like authority by such other state or states, (1) to enter into an agreement with the Federal Security Administrator whereby the benefits of the federal old age and survivors 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 wages contributions equal to the contributions which might be imposed upon them under section four (c) if they were covered by an agreement made pursuant to subsection (a) of this section; and (3) to make payments to the Secretary of the Treasury in accordance with such 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 (a) and other provisions of this chapter.

M.G.L. c. 118C, § 4 Extension of federal benefits to employees; plan; approval; hearing; notice; contribution fund; recovery of delinquent payments

c. 118C, § 4. Extension of federal benefits to employees; plan; approval; hearing; notice; contribution fund; recovery of delinquent payments Section 4. (a) Each instrumentality is hereby authorized to submit for approval by the state agency a plan for extending the benefits of Title II of the Social Security Act, in conformity with applicable provisions of such act, to employees of such instrumentality. Each such plan and any amendment thereof shall be approved by the state agency if it finds that such plan, or such plan as amended, is in conformity with such requirements as are provided in regulations of the state agency, provided, that no such plan shall be approved unless— (1) It is in conformity with the requirements of the Social Security Act and with the agreement entered into under section three; (2) It provides that all services which constitute employment as defined in section two and are performed in the employ of the instrumentality by employees thereof, shall be covered by the plan; (3) It specifies the source or sources from which the funds necessary to make the payments required by paragraph (1) of subsection (c) and by subsection (d) are expected to be derived, and contains reasonable assurance that such sources will be adequate for such purpose; (4) It provides for such methods of administration of the plan by the instrumentality as are found by the state agency to be necessary for the proper and efficient administration of the plan; (5) It provides that the instrumentality will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the Federal Security Administrator may from time to time find necessary to assure the correctness and verification of such reports; and (6) It authorizes the state agency to terminate the plan in its entirety, in the discretion of the state agency, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the state agency, and may be consistent with the provisions of the Social Security Act. (b) The state agency shall not finally refuse to approve a plan submitted by an instrumentality under subsection (a), and shall not terminate an approved plan, without reasonable notice and opportunity for hearing to the instrumentality affected thereby. (c)(1) Each instrumentality as to which a plan has been approved under this section shall pay into the contribution fund, with respect to wages at such time or times as the state agency may by regulation prescribe, contributions in the amounts and at the rates specified in the applicable agreement entered into by the state agency under section three. (2) Each instrumentality required to make payments under paragraph (1) of this subsection is authorized, in consideration of the employee's retention in, or entry upon, employment, to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to his wages not exceeding the amount of tax which would be imposed by section fourteen hundred of the Federal Insurance Contributions Act if such services constituted employment within the meaning of that act, and to deduct the amount of such contribution from his wages as and when paid. Contributions so collected shall be paid into the contribution fund in partial discharge of the liability of such instrumentality under paragraph (1) of this subsection. Failure to deduct such contribution shall not relieve the employee or employer of liability therefor. (d) Delinquent payments due under paragraph (1) of subsection (c) may, with interest at the rate of six per cent per annum, be recovered by action in a court of competent jurisdiction against the instrumentality liable therefor, or may, at the request of the state agency, be deducted from any other moneys payable to such instrumentality by any department or agency of the commonwealth.

M.G.L. c. 118C, § 5 Establishment of contribution fund; use; payment to secretary of treasury; custodian; additional appropriations; estimates

c. 118C, § 5. Establishment of contribution fund; use; payment to secretary of treasury; custodian; additional appropriations; estimates Section 5. (a) There is hereby established a special fund to be known as the contribution fund. Such fund shall consist of and there shall be deposited in such fund: (1) all contributions, interest and penalties collected under section four; (2) all moneys appropriated thereto under this chapter; (3) any property or securities and earnings thereof acquired through the use of moneys belonging to the fund; (4) interest earned upon any moneys in the fund; and (5) all sums recovered upon the bond of the custodian or otherwise for losses sustained by the fund and all other moneys received for the fund from any other source. All moneys in the fund shall be mingled and undivided. Subject to the provisions of this chapter, the state agency is vested with full power, authority and jurisdiction over the fund, including all moneys and property or securities belonging thereto, and may perform any and all acts, whether or not specifically designated, which are necessary to the administration thereof and are consistent with the provisions of this chapter. (b) The contribution fund shall be established and held separate and apart from any other funds or money of the commonwealth and shall be used and administered exclusively for the purpose of this chapter. Withdrawals from such fund shall be made only for payment of amounts required to be paid to the Secretary of the Treasury pursuant to an agreement entered into under section three; and refunds of overpayments, not otherwise adjustable, made by an instrumentality. (c) From the contribution fund the custodian of the fund shall pay to the Secretary of the Treasury such amounts and at such time or times as may be directed by the state agency in accordance with any agreement entered into under section three. (d) The state treasurer shall be treasurer and custodian of the contribution fund, and shall administer such fund in accordance with the provisions of this chapter and the directions of the state agency, and shall pay all warrants drawn upon it in accordance with the provisions of this section and with such regulations as the state agency may prescribe. (e)(1) There are hereby authorized to be appropriated annually to the contribution fund, in addition to the contributions collected and paid into the contribution fund under section four, to be available for the purposes of section 5(b) and (c) until expended, such additional sums as are found to be necessary in order to make the payments to the Secretary of the Treasury which the commonwealth is obligated to make pursuant to an agreement entered into under section three. (2) The state agency shall submit to each regular session of the general court an estimate of the amounts authorized to be appropriated to the contribution fund by paragraph (1) of this subsection for the next appropriation period.

M.G.L. c. 118C, § 6 Expenditure of funds for administrative organization

c. 118C, § 6. Expenditure of funds for administrative organization Section 6. For the purposes of establishing the administrative organization necessary for the proper administration of this chapter and for the services of clerical and other assistance and for travel incidental to and preparatory to an agreement between the state agency and the Federal Security Administrator, as herein provided, and for the purpose of further administering the provisions of this chapter for the year beginning January first, nineteen hundred and fifty-two, the state agency may expend such sums as may be appropriated therefor.

M.G.L. c. 118C, § 7 Rules and regulations

c. 118C, § 7. Rules and regulations Section 7. The state agency shall make and publish such rules and regulations, not inconsistent with the provisions of this chapter, as it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this chapter.

M.G.L. c. 118C, § 8 Studies; reports; recommendations

c. 118C, § 8. Studies; reports; recommendations Section 8. The state agency shall make studies concerning the problem of old age and survivors insurance protection for employees of the commonwealth and its instrumentalities, and concerning the operation of agreements made and plans approved under this chapter, and shall submit a report to the general court at the beginning of each regular session, covering the administration and operation of this chapter during the preceding calendar year, including recommendations for amendments to this chapter.

M.G.L. c. 118C, § 9 Partial invalidity

c. 118C, § 9. Partial invalidity Section 9. If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of this chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

M.G.L. c. 118C, § 10 Rights of members of contributory retirement system

c. 118C, § 10. Rights of members of contributory retirement system Section 10. Nothing contained in this chapter shall be construed to affect adversely the rights of any person who is a member of any contributory retirement system established under the provisions of sections one to twenty-eight, inclusive, of chapter thirty-two or under corresponding provisions of earlier laws, with reference to accumulated total deductions or benefits accrued or to be accrued on account of any service rendered by him.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVII/Chapter118CFetched: 10/20/2026