State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_135 > GS_135-21

§135‑21.  Federal‑State agreement; interstate instrumentalities.

(a)        The State agency,with the approval of the Governor, is hereby authorized to enter on behalf ofthe State into an agreement with the Secretary of Health, Education andWelfare, consistent with the terms and provisions of this Article, for thepurpose of extending the benefits of the Federal Old Age and SurvivorsInsurance System to employees of the State or any political subdivision thereofwith respect to services specified in such agreement which constitute"employment" as defined in G.S. 135‑20. Such agreement maycontain 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 Secretary of Health,Education and Welfare shall agree upon, but, except as may be otherwiserequired by or under the Social Security Act as to the services to be covered,such agreement shall provide in effect that –

(1)        Benefits will beprovided for employees whose services are covered by the agreement (and theirdependents and survivors) on the same basis as though such services constitutedemployment within the meaning of Title II of the Social Security Act.

(2)        The State will payto the Secretary of the Treasury, at such time or times as may be prescribedunder the Social Security Act, contributions with respect to wages (as definedin G.S. 135‑20), equal to the sum of the taxes which would be imposed bythe Federal Insurance Contributions Act if the services covered by theagreement constituted employment within the meaning of that act.

(3)        Such agreement shallbe effective with respect to services in employment covered by the agreementperformed after a date specified therein but shall in no event cover any suchservices performed prior to January 1, 1951.

(4)        All services whichconstitute employment as defined in G.S. 135‑20 and are performed in theemploy of the State by employees of the State, shall be covered by the agreement.

(5)        All services whichconstitute employment as defined in G.S. 135‑20, are performed in theemploy of a political subdivision of the State, and are covered by a plan whichis in conformity with the terms of the agreement and has been approved by theState agency under G.S. 135‑23, shall be covered by the agreement.

(6)        As modified, theagreement shall include all services described in either subdivision (4) orsubdivision (5) of this subsection and performed by individuals to whom section218(c)(3)(C) of the Social Security Act is applicable and shall provide thatthe service of any such individual shall continue to be covered by theagreement in case he thereafter becomes eligible to be a member of a retirementsystem; and

(7)        As modified, the agreementshall include all services described in either subdivision (4) or subdivision(5) of this subsection and performed by individuals in positions covered by aretirement system with respect to which the Governor has issued a certificateto the Secretary of Health, Education and Welfare pursuant to G.S. 135‑29.

(b)        Any instrumentalityjointly created by this State and any other state or states is herebyauthorized, upon the granting of like authority by such other state or states,

(1)        To enter into an agreementwith the Secretary of Health, Education and Welfare whereby the benefits of theFederal Old Age and Survivors Insurance System shall be extended to employeesof such instrumentality,

(2)        To require itsemployees to pay (and for that purpose to deduct from their wages)contributions equal to the amounts which they would be required to pay underG.S. 135‑22(a) if they were covered by an agreement made pursuant tosubsection (a) of this section, and

(3)        To make payments tothe Secretary of the Treasury in accordance with such agreement, includingpayments from its own funds, and otherwise to comply with such agreements.

Such agreement shall, to theextent practicable, be consistent with the terms and provisions of subsection(a) and other provisions of this Article.

(c)        Pursuant to section218(d)(6) of the Social Security Act, the Teachers' and State Employees'Retirement System of North Carolina as established by Article 1 of Chapter 135of the General Statutes, Volume 17, as amended and as the same may be hereafteramended, shall for the purposes of this Article, be deemed to constitute asingle retirement system; and, the North Carolina Local Governmental Employees'Retirement System as established by Article 3 of Chapter 128 of the GeneralStatutes, Volume 16, as amended and as the same may be hereafter amended, shallbe deemed to constitute a single retirement system with respect to eachpolitical subdivision having positions covered thereby. (1951,c. 562, s. 3; 1953, c. 52; 1955, c. 1154, ss. 5‑7, 12.)