2026-27 Fees for the State Social Security Administrator Program
Announcement
This is an announcement from California's Official State Social Security Administrator.
August 24, 2026
Circular Letter: 200-037-26
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, 2026, to cover the cost associated with administering the State Social Security Administrator (SSSA) program. For the fiscal year (FY) 2026-27, annual maintenance fees have decreased across all employer tiers compared to the previous FY.
Background
The Social Security Administration (SSA) requires each state to designate an official to act for the state in administering the Section 218 Agreement. A Section 218 Agreement is a voluntary agreement between the state and the SSA to provide Social Security and Medicare coverage for state and local government employees. In 1955, the governor’s office designated the California Public Employees’ Retirement System (CalPERS) as the SSSA, per Government Code section 22004 of the Public Employees’ Retirement Law (PERL). As the official SSSA, we have the following roles and responsibilities:
- Conduct the Annual Information Request (AIR) to ensure tax compliance with respect to Social Security and Medicare withholding for all public entities in California
- Maintain Section 218- related records
- Perform education and outreach, including webinars about Social Security and Medicare coverage for public employers
- Process modifications for public entities to provide coverage for their employees
- Serve as the liaison between SSA, Internal Revenue Service (IRS), public entities, and stakeholders
From 1955-1986, the SSSA was also responsible for collecting Social Security and Medicare withholdings for all public employers in California. The Omnibus Budget Reconciliation Act of 1986 moved the responsibility of collecting taxes from the SSSA to the IRS. The SSSA has been operating since 1987 using the interest that was earned from the Social Security and Medicare tax holding account.
Fees
There are two types of fees associated with the program: a $650, unchanging fee to establish or amend a Section 218 Agreement, and an Annual Maintenance Fee for existing agreements based on agency size. Invoices are sent on the first business day of September.
For FY 2026-27, the Annual Maintenance Fees have been reduced by $40 to $450, depending on the size of the organization. The baseline fee structure below outlines these updated rates:
| Number of Employees | FY 2025-26 Fee | FY 2026-27 Fee | Net Change |
|---|---|---|---|
| 1-4 | $80 | $40 | −$40 |
| 5-9 | $100 | $60 | −$40 |
| 10-19 | $120 | $70 | −$50 |
| 20-49 | $160 | $90 | −$70 |
| 50-99 | $200 | $110 | −$90 |
| 100-249 | $400 | $220 | −$180 |
| 250-499 | $600 | $330 | −$270 |
| 500-999 | $800 | $440 | −$360 |
| 1,000 and over | $1,000 | $550 | −$450 |
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 (PDF, 2.24 MB) student guide 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 our Understanding State Social Security Fees webpage.
If you have questions, email the SSSA Office at sssa@calpers.ca.gov or call the SSSA directly at (916) 795-0810.
Melody Benavides, Chief
Pension Contracts & Prefunding Programs