Maine Section 218 Agreement: Understanding the Agreement
The Maine Section 218 Agreement is an agreement between the state of Maine and the Social Security Administration (SSA). The agreement is also known as the State Social Security Agreement. The purpose of the agreement is to provide Social Security coverage to employees of the state and its political subdivisions.
The Maine Section 218 Agreement was established in 1956. At that time, the federal government required state and local employees to be covered by Social Security. However, the administration of the program was challenging. The Section 218 Agreement was created to provide a streamlined process for state and local governments to comply with the Social Security requirement.
The agreement provides for coverage of all state and local employees, including part-time and temporary employees. The coverage includes retirement, disability, and survivor benefits.
The SSA oversees the administration of the program, and the state of Maine is responsible for contributing to the program. The state’s contribution rate is based on the total payroll of the covered employees.
Employees covered under the Maine Section 218 Agreement are also covered by Medicare. Employees are required to contribute to both Social Security and Medicare through payroll taxes.
The Maine Section 218 Agreement is essential for employees of the state and local governments. It provides them with the same benefits as other Social Security beneficiaries, including retirement, disability, and survivor benefits. The agreement also ensures that employees are covered under Medicare.
In conclusion, the Maine Section 218 Agreement is a crucial agreement between the state of Maine and the Social Security Administration. It provides coverage for all state and local employees, including retirement, disability, and survivor benefits. The agreement also includes coverage for Medicare. Understanding the agreement is essential for employees covered under the program.