Presentation
on
Social Security and Medicare coverage
for State employees in Louisiana
Advisory Committee, August 2009
Linda Yelverton, Social Security Program Director
Angie Dowdy, Social Security Program Analyst
Employed by:
Louisiana Department of the Treasury/Division of Social Security
John Kennedy, State Treasurer/State Social Security Administrator
State Social Security Administrator



Each state designates, by statute, an official to act for
the state in negotiations with the Social Security
Administration (SSA). Revised Statutes: 42: 10011011
State Administrator maintains the Section 218
Agreement that governs voluntary Social Security and
Medicare coverage by state and local government
employers.
Conduct referenda for Social Security and/or
Medicare coverage for services performed by
employees in positions under a public retirement
system.
Section 218 of Social Security Act
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Under Section 218 the State agreed to pay
Social Security on employees not covered by
a retirement system and employees who are
ineligible for retirement systems. The
majority of State employees DO NOT pay
Social Security, exceptions are:
part time, seasonal and temporary
employees AND
employees who have an option to join
LASERS .
State employees contributing to Social Security

Employees in positions ineligible for
membership in a state retirement system

Employees who are personally ineligible for
membership in a state retirement system

Employees with optional membership in the
retirement system
Mandatory Social Security

1990 Congress mandated Social Security
withholding for services after July 1, 1991

All employees not participating in a
public retirement system which meets
certain minimum benefit requirements
established by the IRS and not covered
under Section 218.
Mandatory Medicare

1986 Congress mandated Medicare tax
be withheld for employees hired, re-hired
or elected after March 31, 1986.
Majority of State employees DO pay
Medicare only, exceptions are …

employees hired prior to April 1, 1986 who
did not vote YES in the Medicare Only
referendum.
NOTE: State Medicare Only Referendum
was effective October 1, 2005. State
employees eligible to vote 10,634 with
1,852 YES Votes and 8,782 NO Votes
Medicare eligibility
State employees are eligible for Medicare at age 65 with
Part A, premium free if they qualify on their record or the
record of a spouse, ex-spouse or deceased spouse.

99% of individuals across the nation do not pay a
premium for Part A coverage. However,1% of
individuals 65 or older do not meet the requirements for
premium-free hospital insurance.

Some state employees will be in this category and will
have the option of purchasing (Part A) by paying a
monthly premium.
2009 Monthly Premiums…

(These figures apply to "timely" enrollments.)

Individual
has
40 credits
Part A
$ -0Part B
96.40
TOTALS $ 96.40



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Individual
has at least
30-39 credits
$ 244.00
96.40
$ 340.40
Individual
has less than
30 credits
$ 443.00
96.40
$ 539.40
WEP & GPO

These two provisions of the Social
Security law affect people with pensions
from work not covered by Social Security.
Windfall Elimination Provision (WEP)

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Provides a reduced Social Security benefit
for workers when any part of their
government pension is based on work not
covered by Social Security.
Does NOT affect retirees first eligible for a
government pension before 1986 or who
have 30 years of substantial earnings under
Social Security.
Government Pension Offset (GPO)

If a state employee receives a government
pension based on work not covered by
Social Security, their Social Security
spouse’s or widow(er)’s benefits will be
reduced or offset by two-thirds of the
amount of the non-covered government
pension.
Who can get Social Security Disability?

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Worker must have paid into Social Security
five of the last 10 years.
Spouse at age 62, at any age if caring for a
child under 16 or disabled . Divorced
spouses may qualify.
Social Security Retirement Age
Year of Birth
1937 or earlier
Full Retirement Age
65
1938
65 and 2 months
1939
65 and 4 months
1940
65 and 6 months
1941
65 and 8 months
1942
65 and 10 months
1943--1954
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 and later
67
…Resources
Louisiana State Treasurer’s Office
Linda Yelverton (225) 342-0026
linda.yelverton@la.gov
Angie Dowdy (225) 342-0295
angie.dowdy@la.gov
Social Security Administration
(800) 772-1213 www.ssa.gov
Internal Revenue Service/
Federal State & Local Government (FLG)
www.irs.gov
IRS Publication 963 http://www.irs.gov/pub/irs-pdf/p963.pdf