2025-26 Fees for the State Social Security Administrator Program
Announcement
This is an announcement from California's Official State Social Security Administrator.
June 30, 2025
Circular Letter: 200-031-25
Topic: Announcements
To: Public Employers With an Existing Section 218 Agreement
Purpose
The purpose of this Circular Letter is to inform you of the update to administrative fees effective July 1, 2025, to cover the cost associated with administering the State Social Security Administrator (SSSA) program.
Background
The SSSA reached its minimum fund threshold and resumed assessing the Annual Maintenance Fee beginning July 1, 2024, to meet funding needs. Annual Maintenance Fees are reviewed and adjusted annually to pay ongoing administrative expenses and maintain mandated fund reserves. The Social Security Administration (SSA) does not provide any funding for the SSSA program. Additionally, per Gov. Code section 20176 of the PERL, we are prohibited from using any retirement funds to cover expenses not related to the cost of the administration of the retirement system. For more information, refer to Circular Letter 200-030-24.
Two Types of Fees
For fiscal year 2025-26, there will be two types of fees that will be assessed. The first is a contracting fee of $650 to establish or amend a Section 218 Agreement, or to amend an existing Section 218 Agreement, for Social Security and/or Medicare coverage.
The second is an Annual Maintenance Fee for all employers that have an existing Section 218 Agreement. This fee is based on the number of employees currently employed with your agency. The Annual Maintenance Fees will be assessed using the criteria below. The invoice will be generated annually when the SSSA AIR is sent to your agency.
Annual Maintenance Fees
| Number of Employees | Fee |
|---|---|
| 1-4 | $80 |
| 5-9 | $100 |
| 10-19 | $120 |
| 20-49 | $160 |
| 50-99 | $200 |
| 100-249 | $400 |
| 250-499 | $600 |
| 500-999 | $800 |
| 1,000 and over | $1,000 |
How to Submit Payment
Payments can be submitted through the Electronic Funds Transfer (EFT) debit method, automated clearing house (ACH) method, by check, or online through the Electronic Payment Gateway. The EFT debit method is preferred and can be set up in myCalPERS at no additional charge. Refer to the myCalPERS Electronic Funds Transfer Student Guide (PDF) for instructions on setting up the EFT or ACH payment methods and making payments.
If you are submitting payments via check, attach the invoice and mail to:
California Public Employees’ Retirement System
Cash & Payment Processing/FRAS
P.O. Box 942703
Sacramento, CA 94229-2703
Questions
To learn more, visit Understanding State Social Security Fees.
If you have questions, email the SSSA Office at sssa@calpers.ca.gov or call the SSSA directly at 916-795-0810916-795-0810.
Melody Benavides, Chief
Pension Contracts & Prefunding Programs