                                 CODE OF VIRGINIA

FEDERAL-STATE AGREEMENT (§ 51.1-702)

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:

   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 &#8220;Rate of
   Tax&#8221; 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.

HISTORY: 1952, c. 2, § 51-111.3; 1956, c. 561; 1980, c. 647; 1984, c. 430;
1990, c. 832; 2005, c. 902.