New Notification Requirement for State and Local Government New Hires

The Social Security Protection Act of 2004 requires state and local government employers to disclose the effects of the Windfall Elimination Provision and the Government Pension Offset on Social Security benefits to employees hired for jobs not covered by Social Security.  The law is effective for employees hired on or after January 1 2005, if their position is not covered by social security.  Certain state and local government positions may not be covered by Social Security because they are not subject to mandatory coverage (as they are covered by a replacement plan) and there is no Section 218 Agreement that covers them. The law requires employers to provide, and newly hired public employees to sign, a statement (Form SSA-1945) that they are aware of a possible reduction in their future social security benefit entitlement.  Employers must submit a copy of the signed form to the retirement system that does cover these employees.  For more detailed information about this law, and to view a copy of Form SSA-1945, see http://www.socialsecurity.gov/form1945.

For further information, please contact Mary Beth Braitman or Eric Swank.