The Treasury Department may enter a Social Security coverage agreement for the state, and covered employers or instrumentalities must make required contributions and payments under the agreement.
§1003. Federal-State agreement A. The Department of the Treasury, with the approval of the governor, is hereby authorized to enter on behalf of the state into an agreement with the commissioner of Social Security, consistent with the terms and provisions of this Chapter, for the purpose of extending the benefits of the federal old age, survivors, disability insurance, and health insurance coverage to employees of the state or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing, with respect to services specified in such agreement, which constitute "employment" as defined in R.S. 42:1002. Such agreement may contain such provisions relating to coverage, benefits, effective date, modification of the agreement, administration, and other appropriate provisions as the Department of the Treasury and the commissioner of Social Security shall agree upon, but, except as may be otherwise required by or under applicable federal law as to the services to be covered, such agreement shall provide in effect that: (1) Benefits will be provided for employees whose services are covered by the agreement (and their dependents and survivors) on the same basis as though such services constituted employment within the meaning of Title II of the Social Security Act.1 (2) The employer will pay to the Internal Revenue Service at such time or times as may be prescribed by the applicable federal law or by regulation promulgated thereunder, contributions with respect to wages (as defined in R.S. 42:1002), equal to the sum of the taxes which would be imposed by the Federal Insurance Contributions Act2 if the services covered by the agreement constituted employment within the meaning of that Act. (3) All services which constitute employment as defined in R.S. 42:1002 and are performed in the employ of the state by employees of the state shall be covered by the agreement. (4) All services which (a) constitute employment as defined in R.S. 42:1002, (b) are performed in the employ of a political subdivision or in the employ of an instrumentality of either the state or a political subdivision, or both, and (c) are covered by a plan which is in conformity with the terms of the agreement and which has been approved by the Department of the Treasury under R.S. 42:1005 shall be covered by the agreement. (5) As modified, the agreement shall include all services described in either Paragraph (3) or (4) of this Subsection and shall provide that the service of any such individual shall cease to be covered by the agreement in case he thereafter becomes eligible to be a member of a retirement system (but only if the agreement is not already applicable to such system). (6) As modified, the agreement shall include all services described in either Paragraph (3) or (4) of this Subsection and performed by individuals in positions covered by a retirement system with respect to which the governor, or his designee, has issued a certificate to the commissioner of Social Security pursuant to R.S. 42:1010(B). B. Any instrumentality jointly created by this state and any other state or states is hereby authorized, to the extent that this state may confer authority, upon the granting of like authority by such other state or states: (1) To enter into an agreement with the commissioner of Social Security whereby the benefits of the federal old age, survivors, and disability insurance, and health insurance coverage shall be extended to employees of such instrumentality. (2) To require its employees to pay (and for that purpose to deduct from their wages) contributions equal to the amounts which they would be required to pay under R.S. 42:1004(A) if they were covered by an agreement made pursuant to Subsection A of this Section. (3) To make payments to the Internal Revenue Service in accordance with such agreement, including payment from its own funds, and otherwise to comply with such agreement. Such agreement shall, to the extent practicable, be consistent with the terms and provisions of Subsection A of this Section and other provisions of this Chapter. C. Each and every retirement system which covers positions of employees of one or more institutions of higher learning shall be deemed to constitute a separate retirement system for the employees of each such institution of higher learning and the term "institutions of higher learning" shall include community colleges, junior colleges, and teachers' colleges. Acts 1952, No. 204, §3. Amended by Acts 1953, Ex.Sess., No. 6, §1; Acts 1955, No. 36, §3; Acts 1958, No. 304, §1; Acts 2004, No. 280, §1, eff. July 1, 2004. 142 U.S.C.A. §401 et seq. 253 Stat. 175 to 179 (I.R.C.1939) §1400 et seq. and 26 U.S.C.A., §3101 et seq. (1954 Act)