State Social Security Administrator Program Funding
May 11, 2022
Circular Letter: 200-028-22
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 the Annual Maintenance Fee invoices for fiscal year 2022-23.
This decision was made because the fees collected during previous fiscal years exceed our targeted amount to fund anticipated expenditures for the next fiscal year.
Background
The SSSA started collecting an Annual Maintenance Fee on July 1, 2019. The purpose of the fee is to fund the SSSA and the services it provides, including:
- Serve as the liaison between Social Security Administration (SSA), the Internal Revenue Service, public entities, and stakeholders
- Process modifications for public entities to provide coverage for their employees
- Maintain Section 218 related records
- Perform education and outreach including monthly webinars about Social Security coverage for public employers
- Conduct the Annual Information Request to ensure tax compliance with respect to Social Security and Medicare withholding for all public entities in California
Additional Information
The SSSA will still send the required Annual Information Request form to gather information related to your employee coverage.
The $650 contracting fee will not be affected by this decision and will continue to be assessed when an agency establishes a new Section 218 Agreement or amends an existing Section 218 Agreement.
The SSSA will provide future communications once the invoices and respective rates are reestablished.
Questions
To learn more, read Understanding State Social Security Fees located on the CalPERS website.
Basis for Current Rate
| Bargaining Unit 5 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneousfoot note1 | 6/30/20 | 16.48% | 8.25% |
| California Highway Patrol | 6/30/20 | 29.26% | 12.50% |
| Bargaining Unit 9 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneousfoot note1 | 6/30/18 | 16.88% | 8.50% |
| State Industrialfoot note1 | 6/30/15 | 18.02% | 9.00% |
| State Safety | 6/30/18 | 23.19% | 11.50% |
| Bargaining Unit 16 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneousfoot note1 | 6/30/15 | 15.48% | 10.00% |
| State Industrialfoot note1 | 6/30/15 | 18.02% | 10.00% |
| State Safety | 6/30/18 | 23.19% | 11.50% |
| Bargaining Unit 18 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneousfoot note1 | 6/30/15 | 15.48% | 10.00% |
| State Industrialfoot note1 | 6/30/15 | 18.02% | 10.00% |
| State Safety | 6/30/20 | 23.91% | 11.50% |
foot note1 The member rate shown here is for a member who participates in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown here.
Common items for uniform allowance:
- Dress Shoes
- Pants
- Polo Shirts
- Slacks
- Socks
If you have any questions, email sssa@calpers.ca.gov or call SSSA directly at (916) 795-0810 . (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
Attachment: Social Security Coverage Status of School Police at the San Diego Community College District under California Modification No. 839 (PDF)
Attachment: Social Security Coverage Status of School Police at the San Diego Community College District under California Modification No. 839 (PDF)