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RES 1978-03 SO. SEC CO COMM & CORNER r , ^y BOARD OF ADMINISTRATION STATE OF MONTANA W. N. COCALES THOMAS L. JUDGE, GOVERNOR FRED L. HILL JOHN L. PRE131L TED SCHWINOEN � •tr KEVIN J. SHANNON DEPARTMENT OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT DIVISION 1712 NINTH AVENUE TELEPHONE: AREA CODE 406/446 -3154 HELENA, MONTANA 59601 SOCIAL SECURITY PROGRAM April 19, 1978 69- 0810118 PROCEDURE FOR PUBLIC County of Jefferson EMPLOYEES County Clerk & Recorder- Box 115 Boulder, Montana 59632 Dear Mrs. McFarlane: In reply to your inquiry of our auditor we are enclosing a pamphlet explaining the procedure for securing social security coverage for public employees in Montana. Paragraph B, page 3 of this pamphlet is the section applicable to employees covered by a retirement system. In the event that your board members wish to make Social Security coverage available to these employees, we are enclosing two copies of a resolution, which should be signed by the chairman of your board and both copies returned to this office. The next referendum in which your employees will be able to participate is schedule for . In order for your employees to qualify for this referendum, the resolution must e received in this office prior to If you have any questions in this matter, please contact this office. i S - pre , David��x Accountant Social Security Program, PERS Encs. DF /sh PROCEDURE FOR SECURING SOCIAL SECURITY COVERAGE FOR PUBLIC EMPLOYEES IN MONTANA INTRODUCTION Public employees in the United States were first permitted to secure coverage tinder the Old -Age and Survivors' Insurance program through an amendiiient of the Social Security Act in 1950. Prior to this, all public employees had been excluded from coverage for any service rendered to any governmental unit. The Social Security Act amendments of 1950 made provisions for the coverage of employees of State and local goverments under voluntary agreements made by the individual states with the Secretary of Health, Education and Welfare. The employees covered through these voluntary agreements could acquire the same rights and benefits tinder the Old -Age and Survivors' Insurance program as covered employees in private industry. In its agreement, the State undertakes to report wages and pay contributions based on such wages, equal to the amount of taxes which would be payable if the services were performed in private employment. The responsibilities of the State under this agreement, known as the Federal -State Agreement, are similar in most aspects to those of any large corporation which has branches in many geographical locations, Public employees in Montana were first given the opportunity of securing Social Security coverage under the 1950 amendments in 1953, when the 33rd Legislative Assembly of Montana enacted Chapter 44, 1953 Session Laws of Montana. This act provided the necessary enabling legislation whereby employees of political subdivisions of the State, who were not covered under an existin re ti r ement system, could secure social security coverage. This s provisto n is still in effect or those political subdivisions whose employees are not covered by a retirement system. Coverage is provided coley through a voluntary agreement entered into between the legislative body of the political subdivision and the Board of Admini - stration of the Public Employees' Retirement System, In September, 1954, the Social Security Act was amended by the 83rd Congress in Public Law to make it possible for public employees under a retirement system to secure coverage for the first time under the Old -Age and Survivors' Insurance provisions by means of an agreement, or a modification of the agreement, between the State and the Secretary of Health, Education and Welfare, Prior to this, all employees in positions under a State or local retirement system were mandatority excluded from coverage under an agreement. Public employees under a retirement system in Montana were first given the oppor- tunity of securing; social security coverage in addition to their membership in a retirement . system on ,July 1, 1955, when Chapters 270 and 271, 1955 Session I.,aws of Montana, became effective, These laws were enacted by the 34th Legislative Assembly of Montana with Chapter 270 providing for Social Security supplementation for members of the Public: Employees' Retirement System, and Chapter 271 providing supplementation for members of the Teachers' Retirement System. Under the provisions of these 1955 Session Laws of Montana, public employees of the State and its political subdivisions, under a retirement System, may secure social security coverage only as additional coverage to their present membership. which is known as supplementation, when the legislative body of a political subdivision files a resolution requesting a referendum with the Governor of the State of Montana. The referendum is a State matter insofar as administration and sLtpervision are concerned but it must meet specific requirements of the federal law, nevertheless, in these respects: I . An opportunity to vote must be given and limited to el i };i bl c etii pl oyes s -- - -2- members of a retirement system. 2. Not less than ninety (90) days notice of the referendum must be given to all such employees. 3. Such referendum must be conducted under the supervision of the Governor, or an agency, or an individual designated by him, 4. The referendum must be by secret written ballot on the question of Old -Age and Survivors' Insurance coverage. The state agency designated by Chapter 270, 1955 Session Laws of Montana, and the Governor of Montana, to administer Social Security in Montana, after . July 1, 1955, is the Board of Administration of the Public Employees' Retirement System, and the individual designated by the governor of Montana to supervise the referendum is the Secretary of the Montana State Board of Equalization. Procedure for Cove_ rage of ,—'^ Political Suldiyisions A. For Political Subdivisions Not Under a Retirement Sy stem. 1. The governing body of the political subdivision should determine: a. If the majority of their employees desire social security coverage. b. What classes of positions it intends to bring under social security. c . When social security coverage will be made effective for thei r employees. cf. If sufficient funds are available or will be budgeted to cover employer contributions from the effective date of coverage. 2. The governing body of the political subdivision must enact an ordinance, resolution or other such customary enactment, authorizing its executive officers to secure and submit a Plan and Agreement for Social Security coverage to the State Agency. (Public l,n►ployees' Retirement System), This resolution, ordinance or document should authorize participation in the social security program, provide for the execution of the Plan and Agreentew, , define the coverage group, give proper assurance that the laws and regulations will be complied with, and provide for funds from which contributions are to be paid when due. (Sec Appendix A for suggested resolution and Appendix B for suggested ordinance, 3. The resolution, ordinance or other such customary document as adopted above should be sent to the Secretary, Public Employees' Retirement System, 1712 Ninth Avenue, Helena, Montana :59601. 4, The Social Security Division of the Public Employees' Retirement System will mail two copies of the Plan and Agreement with an explanation sheet clarifying the various articles in said Plan and Agreement to the Governing body of the political sirbclivision. 5. Both copies of the Flan and Agreement should be completed mid executed by the governing body of the political subdivision as authorized under (2) above, and returned to the Public Employees' Retirement System for approval and return. 6. The governing body of the political subdivision must also submit the title: of the officer, who will be in charge of the Social Security witliholding and reporting to tile. Social. Security Division so that the reporting forms, OAR -S3, may be submitted to him or her for each quarterly reporting period. .......,, - -3- 7. The Public Employees Retirement System will sign both copie of the flan and Agreement after approving the same and return one executed copy to the governing body. 8. The Public Employees' Retirement Systeni will send instructions for reporting an(,] reporting foriwi to each reporting officer of the political subdivision as soon as such reports are required. 13. For PolitiL %d Subdivisions Under a Retirement System l . The governing body of the political subdivision should deterniine: a. if the majority of their employees who are members of the retirement system, desire to add social security coverage to their present member- ship in the retirement system. (A favorable vote of the majority of the eligible members is necessary to secure coverage for the entire group.) b. The effective date of social security coverage for their member - employees. c. The classes of positions it intends to include under social security. d. If sufficient funds are available or will be budgeted to cover the employer contributions and administrative expense from the planned effective date of coverage. 2. The governing body of the political subdivision must adopt a resolution requesting the Governor to authorize a referendum on the question of social security coverage. This resolution will be sent to the Secretary of the Board of Administration of the Public Fmployees' Retirement System. (Suggested resolution for members of the Public Fmployees' Retirement System is Appendix C and the resolution for Teachers' Retirement System is Appendix D.) 3. The Secretary of the Board of Administration, Public Employees' Retirement System will acknowledge receipt of the resolution on behalf of the Governor and will inform the political subdivisions of the date or approximate date of the referendum in which the eligible employees will vote on the question of social security participation. 4. At least ninety (90) days prior to the actual referendum the necessary notices of the referendum and information on social security benefits will be sent to the election official of the political subdivision by the Public Employees' Retirement System for distribution to each eligible member of the retirement system. 5. Prior to the actual referendum date, ballots, referendum eligibility lists, and instructions as to procedure will be mailed to all election officials by the Public Employees' Retirement System. 6. Following the referendum, the election official will certify the results of the balloting to the Secretary, Public Employees' Retirement System, for verification and record. 7. The Public Employees' Retirement System will certify the results of the referendum and send copies of a Plan and Agreement to the governing body of the political subdivision for execution and approval. 8. One copy of the Plan and Agreement will be returned to the political Subdivision for their records and files. 9. Forms for reporting contributions are prepared by the Social Security i Administration, Baltimore, Maryland, and transmitted to each political subdivisdon via the Public Employees' Retirement System prior to the end of each quarterl reporting period, and in one set for any retroactive quarterly reporting perio�s . RESOLUTION RE!UESTING REFERENDUM WHEREAS, the Thirty -fourth Legislative Assembly of the State of Montana enacted House Bill No. 151, now known as Chapter 270, 1955 Session Laws of Montana, and the same has been approved by the Governor of the State of Montana, and WHEREAS, said Chapter 270 provides enabling legislation under which mem- bers of the Public Employees' Retirement System may have the opportunity to vote by referendum on the question whether they desire social security coverage in add- ition to their present coverage under the Public Employees' Retirement System of Montana, and WHEREAS, Section 3 of said Chapter 270 provides that the Public Employees' Retirement System of Montana shall, for the purpose of said Act, be deemed to con - stitute a separate retirement system with respect to each political subdivision having positions covered thereby, and WHEREAS, the Bd. of Co. C mmissioneref the Jefferson County overning y ity, County, TQ11c gency State of Montana, is the governing body of said (City, County, Public Agency) which has positions covered by the Public Employees' Retirement System of Montana, and NOW THEREFORE, BE IT RESOLVED that the Board of County Cmmdssioners overnmg Body) of the (City, County, Public Agency), State of Montana, in meeting regularly and duly assembled in the (city or town), does hereby request that the Governor of the State of Montana authorize a referendum among the eligible employees of the (City, County, Public Agency), State of Montana, on the question whether service in positions under the jurisdiction of said (City, County, Public Agency) and now covered by the Public Employees' Retirement System of Montana shall be included or excluded under Fed - eral Social Security as provided for under the provisions of Chapter 270, BE IT FURTHER RESOLVED, that said Bd. of 922V OommissionextDes hereby overn ng Body) that the Governor of the State of Montana pro ulgate and issue such authorization for a referendum on 2nd day of April , 19 7 (Date for authorization should be at least ninety days prior to re eren urn te), and BE IT FURTHER RESOLVED, that a copy of this Resolution, duly and properly certified, be transmitted to the Honorable Thomas L. Judge, Governor of the State of Montana. DONE AND DATED THIS Second day o f April 19 79 at Boulder State o ontana . ruing y) - K;ha r or A EST` of vexning - y r Dated this 2nd day of P,nril 197 . PUBLIC AGENCY (POLITICAL SUBDIVISION) Bd. of County Clamnissioners GOV NING BODY 7 'ezz' e4;6� (Fr esident or airman ATTEST: (Cl erk o is gency (Political 9@0ivision CERTIFICATE OF AUTHENTICATION STATE OF MONTANA ) County of Jefferson ) I, Joanne P. McFarlane Clerk of Public Agency (Political Subdivision) Jefferson CbuMty , State of Montana, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. passed by the Governing Body of the Public Agency (Political Subdivision) State of Montana, on the 2 ay of April _ , 197 g , as the same appears in the records and files in my office. In witness thereof, I have hereunto set my hand, r o is Agency Pivs on l �_ �► '* �° �. �� -Q �• �:�- 1 �`� `�� c. ^.:. v �- - - �.