July 14, 2023
Circular Letter: 200-039-23
Topic: Announcements

To: Public Employers with an Existing Section 218 Agreement

Purpose

The purpose of this Circular Letter is to inform you that the State Social Security Administrator (SSSA) will not be issuing Annual Maintenance Fee invoices for Fiscal Year (FY) 2023-24.

This decision was made because the fees collected in previous FYs exceed our targeted amount to fund anticipated expenditures for the next FY.

Background

The SSSA started collecting an annual maintenance fee on July 1, 2019. The purpose of the fee is to fund the SSSA and its services, including:

• Serving as the liaison between the Social Security Administration, the Internal Revenue Service, public entities, and stakeholders
• Processing modifications for public entities to provide coverage for their employees
• Maintaining Section 218 related records
• Performing education and outreach including webinars about Social Security coverage for public employers
• Conducting the Annual Information Request (AIR) to ensure tax compliance with respect to Social Security and Medicare tax withholding for all public entities in California

Additional Information

The SSSA will still send the required AIR form to gather information related to your employee coverage.

The $650 contracting fee is not affected by this decision and will continue to be assessed when an agency establishes a new or amends an existing Section 218 Agreement.

The SSSA will provide future communications when the invoices and respective rates are re-established.

Additional Resources

For more information, visit Understanding State Social Security Fees located on our website.

Questions

If you have any questions, email the SSSA Office at sssa@calpers.ca.gov or call the SSSA directly at (916) 795-0810. You may also call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377 888-225-7377).

 

Renee Ostrander, Chief
Employer Account Management Division