[Federal Register Volume 61, Number 143 (Wednesday, July 24, 1996)]
[Rules and Regulations]
[Pages 38363-38368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18358]
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
20 CFR Part 404
RIN 0960-AE00
Miscellaneous Coverage Provisions of the Social Security
Independence and Program Improvements Act of 1994; Coverage Provisions
of the Social Security Domestic Employment Reform Act of 1994
AGENCY: Social Security Administration (SSA).
ACTION: Final rules.
-----------------------------------------------------------------------
SUMMARY: These final regulations reflect sections 303, 305, 319 and 320
of the Social Security Independence and Program Improvements Act of
1994, which made several amendments to the Social Security Act (the
Act) concerning the Social Security coverage of State and local
government election officials and election workers effective beginning
January 1, 1995, police officers and firefighters effective with
respect to modifications filed under section 218 of the Act on and
after August 16, 1994, Federal employees transferred to international
organizations effective January 1, 1995, and nonresident aliens who
enter the United States under a cultural exchange program effective
October 1, 1994. These final regulations also reflect section
1001(d)(2)(E) of the Technical and Miscellaneous Revenue Act of 1988,
which excludes from coverage certain services performed by certain
nonresident aliens temporarily in the United States to pursue a
vocational or nonacademic technical education. In addition, these final
regulations also reflect section 2 of the Social Security Domestic
Employment Reform Act of 1994, which concerns the coverage of domestic
services performed in a private home of the employer.
EFFECTIVE DATE: These regulations are effective July 24, 1996.
FOR FURTHER INFORMATION CONTACT: Lois Berg, Legal Assistant, Division
of Regulations and Rulings, Social Security Administration, 3-B-1
Operations Building, 6401 Security Boulevard, Baltimore, MD 21235,
(410) 965-1713 for information about these rules. For information on
eligibility, claiming benefits, or coverage of earnings, call
[[Page 38364]]
our national toll-free number, 1-800-772-1213.
SUPPLEMENTARY INFORMATION: Public Law 103-296, which established SSA as
an independent agency, also made a number of miscellaneous program
improvements. These final rules reflect sections 303, 305, 319 and 320
of Public Law 103-296, which amended sections 210 and 218 of the Act
with respect to the Social Security coverage of certain workers.
Section 303 of Public Law 103-296 amended section 210(a)(7)(F)(iv)
of the Act to provide that services performed by State and local
government election officials and workers who earn less than $1000 in a
calendar year for those services are excluded from the mandatory Social
Security and Medicare coverage generally provided under section
210(a)(7)(F) for State and local government employees who are not
members of a State or local government retirement system. Similarly,
section 303 amended section 210(p)(2)(E) of the Act to provide that
services of election officials and workers who earn less than the
$1,000 annual amount also are excluded from the mandatory Medicare only
coverage generally provided under section 210(p)(2) for State and local
government employees hired after March 31, 1986. Section 303 also
amended section 218(c)(8) of the Act to provide that services of
election officials and workers who earn less than the $1,000 annual
amount may, at the option of the State, be excluded from a voluntary
section 218 coverage agreement entered into by a State. Finally,
section 303 provides that the $1,000 amount will be adjusted for all
three exclusions beginning in calendar year 2000 to reflect changes in
wages in the economy. Prior to these statutory amendments, these three
exclusions applied to election officials and workers who earned less
than $100 in a calendar year, rather than $1,000. This increase in the
threshold amount to $1000 for these exclusions is effective for
services performed on or after January 1, 1995. However, the higher
threshold for the optional exclusion from voluntary coverage under a
section 218 agreement will apply only if the State executes a
modification to its coverage agreement electing to take the exclusion
with the increased $1000 based limit. We are amending
Secs. 404.1018b(c)(1)(v), 404.1020(a)(3)(iv) and 404.1210(e) to reflect
the statutory changes made by section 303.
Section 305 of Public Law 103-296 amended section 218(l) of the Act
to give all States the option to extend Social Security coverage to
police officers and firefighters who are under the State or political
subdivision employer's retirement system. This amendment is effective
with respect to section 218 coverage modifications filed by States on
or after August 16, 1994. Prior to this amendment, section 218(l)
authorized only 23 named States to provide this coverage. We are
amending Secs. 404.1206 (a) and (f), 404.1211(d), and 404.1212 to
reflect this amendment and to update the terminology so that
``policeman'' or ``policemen'' are now referred to as ``police
officer(s)'', and ``fireman'' or ``firemen'' are now referred to as
``firefighter(s)''.
Section 319 of Public Law 103-296 amended section 210 of the Act by
adding a new subsection, subsection (r), to provide for the
continuation of Social Security coverage as employment of services
performed by Federal civilian employees temporarily transferred to an
international organization regardless of whether the international
organization is within or outside the United States. Prior to this
amendment, which is effective with respect to services performed on or
after January 1, 1995, coverage would not continue if the services were
performed outside the United States and it would continue as self-
employment if performed within the United States. Specifically, under
new subsection (r), work performed in the employ of an international
organization, pursuant to a temporary transfer from a Federal agency
under section 3582 of title 5 of the United States Code, is covered
employment if the individual worked in covered employment for a Federal
agency immediately prior to the transfer and would be entitled, upon
separation from the international organization and proper application,
to reemployment with the Federal agency under section 3582. We are
amending Secs. 404.1004, 404.1018, 404.1034 and 404.1068(d) to reflect
this statutory change.
Section 320 of Public Law 103-296 amended section 210(a)(19) of the
Act to exclude from Social Security coverage certain services performed
by nonresident aliens who enter the United States on a temporary basis
as part of a cultural exchange program under a visa issued under
section 101(A)(15)(Q) of the Immigration and Nationality Act. This
provision is effective October 1, 1994. We are revising Sec. 404.1036
to reflect this statutory change. We also are revising Sec. 404.1036 to
reflect section 1001(d)(2)(E) of Public Law 100-647, the Technical and
Miscellaneous Revenue Act of 1988, which, effective for remuneration
for services received after December 31, 1986, amended section
210(a)(19) of the Act to exclude from coverage certain services
performed by nonresident aliens temporarily in the United States as
nonimmigrants to pursue a vocational or nonacademic technical
education. These individuals are ``M'' visa holders under section
101(a)(15)(M) of the Immigration and Nationality Act. Finally, we are
revising Sec. 404.1036 to reflect section 9(a)(1) of Public Law 100-525
which in 1988 amended section 101(a)(15)(J) of the Immigration and
Nationality Act by substituting ``Director of United States Information
Agency'' for ``Secretary of State.''
Section 2 of Public Law 103-387, the Social Security Domestic
Employment Reform Act of 1994, made several changes with respect to the
coverage of domestic services which are also reflected in these final
rules. First, section 2 amended section 209(a)(6)(B) of the Act to
raise the threshold per employer for coverage of payments made to an
employee for domestic services in the employer's private home from $50
per calendar quarter to $1,000 per calendar year beginning in 1994.
However, under a special provision for calendar year 1994, if a
domestic employee was paid less than $1,000 by an employer, the
employer must report the earnings on form W-2 if the services would
have been covered under the law as it existed prior to the enactment of
Public Law 103-387. Although payment of Social Security taxes on such
1994 earnings is not required, the employee will receive Social
Security coverage credit for those 1994 earnings which must be
reported. In calendar years after 1995, the $1000 threshold will be
subject to adjustment in $100 increments based on the formula in
section 215(a)(1)(B)(i) of the Act to reflect changes in wages in the
economy. We are amending Secs. 404.1042(c)(2) and 404.1057(a) to
reflect the statutory increase in the coverage threshold for domestic
services.
Section 2 of Public Law 103-387 also amended section 209(a)(6)(B)
to provide that, effective with respect to remuneration paid after
1993, the coverage of earnings for domestic services in the private
home of an employer on a farm operated for profit is determined in the
same manner as earnings for any other domestic services and those
earnings are subject to the new threshold instead of the threshold
applicable to other agricultural labor. Prior to the statutory
amendment, which is subject to the special provision for 1994 discussed
above, the coverage threshold generally applicable to domestic services
did not apply to domestic services which also
[[Page 38365]]
constituted agricultural labor under section 210(f) of the Act. We are
amending Secs. 404.1055 and 404.1056(a)(6) to reflect this statutory
change. In addition, we are amending Sec. 404.1055(c)(1) to provide a
technical clarification consistent with the example currently provided
in that paragraph. We are also amending Sec. 404.1056(a)(6) to update
cross-references to Secs. 404.1058 and 404.1059 to reflect the fact
that those sections were redesignated as Secs. 404.1057 and 404.1058,
respectively, on March 1, 1990 (55 FR 7306, 7310).
Finally, section 2 of Public Law 103-387 added a new paragraph (21)
to section 210(a) of the Act to provide that domestic services
performed after December 31, 1994, in the private home of the employer
are excluded from Social Security coverage, regardless of the amount
earned, in any year in which the employee is under age 18 if the
domestic service is not the employee's principal occupation. We are
adding Sec. 404.1038 to reflect this provision and we are also amending
Secs. 404.1001(d)(2), 404.1003, 404.1004(a) and 404.1012 to provide
cross-references to new Sec. 404.1038.
Regulatory Procedures
Justification for Final Rules
Pursuant to section 702(a)(5) of the Act, SSA follows the
Administrative Procedure Act (APA) rulemaking procedures specified in 5
U.S.C. 553 in the development of its regulations. The APA provides
exceptions to its notice and public comment procedures when an agency
finds there is good cause for dispensing with such procedures on the
basis that they are impracticable, unnecessary, or contrary to the
public interest. We have determined that, under 5 U.S.C. 553(b)(B),
good cause exists for waiver of the notice and public comment
procedures for these regulations. Opportunity for prior public comment
is unnecessary because these regulations contain no discretionary
policy and only reflect provisions in Public Law 103-296, Public Law
103-387, and Public Law 100-647 and make nonsubstantive, technical
changes. Therefore, we are issuing these changes to our regulations as
final rules. Also, since these regulations reflect the statute, the 30-
day delay in effectuating regulations, as provided in 5 U.S.C. 553(d),
does not apply.
Regulatory Flexibility Act
We certify that these regulations will not have a significant
economic impact on a substantial number of small entities, including
small governmental jurisdictions. Any economic impact involved in the
regulations results directly from the statutory amendments, not from
the regulations. Therefore, a regulatory flexibility analysis as
provided in Public Law 96-354, the Regulatory Flexibility Act, is not
required.
Executive Order 12866
We have consulted with the Office of Management and Budget (OMB)
and determined that these rules do not meet the criteria for a
significant regulatory action under Executive Order 12866. Thus, they
were not subject to OMB review.
Paperwork Reduction Act
These regulations impose no reporting/recordkeeping requirements
necessitating clearance by OMB.
(Catalog of Federal Domestic Assistance Program No. 96.001
Social Security--Disability Insurance; 96.002 Social Security--
Retirement Insurance; and 96.004 Social Security--Survivors
Insurance)
List of Subjects in 20 CFR Part 404
Administrative practice and procedure, Blind benefits, Disability
benefits, Old-Age, Survivors and disability insurance, Reporting and
recordkeeping requirements, Social security.
Dated: July 8, 1996.
Approved:
Shirley S. Chater,
Commissioner of Social Security.
For the reasons set forth in the preamble, subparts K and M of part
404 of chapter III of title 20 of the Code of Federal Regulations are
amended as set forth below.
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950-)
Subpart K--[Amended]
1. The authority citation for subpart K of part 404 continues to
read as follows:
Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230,
231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v),
405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)).
2. Section 404.1001 is amended by revising paragraph (d)(2) to read
as follows:
Sec. 404.1001 Introduction.
* * * * *
(d) * * *
(2) In Secs. 404.1012 through 404.1038 we discuss various types of
work that are not covered as employment for social security purposes.
* * * * *
3. Section 404.1003 is amended by revising the fourth sentence to
read as follows:
Sec. 404.1003 Employment.
* * * Exceptions to the general rule are contained in
Secs. 404.1012 through 404.1038 which explain the kinds of work
excluded from employment. * * *
4. Section 404.1004 is amended by revising the introductory text of
paragraph (a) and by adding a new paragraph (a)(5) to read as follows:
Sec. 404.1004 What work is covered as employment.
(a) General requirements of employment. Unless otherwise excluded
from coverage under Secs. 404.1012 through 404.1038, the work you
perform as an employee for your employer is covered as employment under
social security if one of the following situations applies:
* * * * *
(5) Your work performed after December 31, 1994, is in the employ
of an international organization pursuant to a transfer from a Federal
agency under section 3582 of title 5 of the United States Code and both
the following are met:
(i) Immediately before the transfer, your work for the Federal
agency was covered employment; and
(ii) You would be entitled, upon separation from the international
organization and proper application, to reemployment with the Federal
agency under section 3582.
* * * * *
5. Section 404.1012 is amended by revising the second sentence to
read as follows:
Sec. 404.1012 Work excluded from employment.
* * * They are described in Secs. 404.1014 through 404.1038 and are
exceptions to the general rule in Sec. 404.1004 on the kinds of work
that are covered as employment. * * *
6. Section 404.1018 is amended by redesignating paragraph (g) as
paragraph (h) and by adding a new paragraph (g) to read as follows:
Sec. 404.1018 Work by civilians for the United States Government or
its instrumentalities--wages paid after 1983.
* * * * *
(g) Work for international organizations. Work performed for an
international organization by an employee who was transferred from a
Federal agency is generally covered as
[[Page 38366]]
employment if, immediately before the transfer, the employee's services
for the Federal agency were covered. (See Sec. 404.1004(a)(5) and
Sec. 404.1034(c).)
* * * * *
7. Section 404.1018b is amended by revising paragraph (c)(1)(v) to
read as follows:
Sec. 404.1018b Medicare qualified government employment.
* * * * *
(c) * * *
(1) * * *
(v) By an election official or election worker paid less than $100
in a calendar year for such service prior to 1995, or less than $1,000
for service performed in any calendar year after 1994 and before 2000,
or, for service performed in any calendar year after 1999, less than
the $1,000 base amount, as adjusted pursuant to section 218(c)(8)(B) of
the Social Security Act to reflect changes in wages in the economy. We
will publish this adjustment of the $1,000 base amount in the Federal
Register on or before November 1 preceding the year for which the
adjustment is made.
* * * * *
8. Section 404.1020 is amended by revising paragraph (a)(3)(iv) to
read as follows:
Sec. 404.1020 Work for States and their political subdivisions and
instrumentalities.
(a) * * *
(3) * * *
(iv) As an election official or election worker if the remuneration
paid in a calendar year for such service prior to 1995 is less than
$100, or less than $1000 for service performed in any calendar year
after 1994 and before 2000, or, for service performed in any calendar
year after 1999, less than the $1000 base amount, as adjusted pursuant
to section 218(c)(8)(B) of the Social Security Act to reflect changes
in wages in the economy. We will publish this adjustment of the $1000
base amount in the Federal Register on or before November 1 preceding
the year for which the adjustment is made.
9. Section 404.1034 is amended by revising the first sentence in
the introductory text of paragraph (a), by redesignating paragraph (c)
as paragraph (d) and revising it, and by adding a new paragraph (c) to
read as follows:
Sec. 404.1034 Work for an international organization.
(a) If you work as an employee of an international organization
entitled to enjoy privileges, exemptions, and immunities as an
international organization under the International Organizations
Immunities Act (59 Stat. 669), your work is excluded from employment
except as described in paragraphs (b) and (c) of this section. * * *
* * * * *
(c) Your work performed after December 31, 1994 will not be
excluded under this section if you perform service in the employ of an
international organization pursuant to a transfer from a Federal agency
under section 3582 of title 5 of the United States Code and
(i) Immediately before such transfer you performed service with a
Federal agency which was covered as employment; and
(ii) You would be entitled, upon separation from the international
organization and proper application, to reemployment with the Federal
agency under section 3582.
(d) If you are a citizen of the United States and work in the
United States as an employee of an international organization that
meets the conditions in paragraph (a) of this section and you are not
subject to coverage based on paragraph (c) of this section, you are
considered to be self-employed (Sec. 404.1068(d)).
10. Section 404.1036 is revised to read as follows:
Sec. 404.1036 Certain nonresident aliens.
(a) Foreign students. (1) Foreign students (nonimmigrant aliens)
may be temporarily in the United States under subparagraph (F) of
section 101(a)(15) of the Immigration and Nationality Act to attend a
school or other recognized place of study approved by the Attorney
General. On-campus work or work under permission granted by the
Immigration and Naturalization Service which is done by these students
is excluded from employment. Other work done by these foreign students
is not excluded from employment under this section.
(2) Foreign students (nonimmigrant aliens) may be temporarily in
the United States under subparagraph (M) of section 101(a)(15) of the
Immigration and Nationality Act to pursue a vocational or nonacademic
technical education approved by the Attorney General. Work done by
these students to carry out the purpose for which they were admitted is
excluded from employment. Other work done by these foreign students is
not excluded from employment under this section.
(b) Exchange visitors. (1) Exchange visitors (nonimmigrant aliens)
may be temporarily in the United States under subparagraph (J) of
section 101(a)(15) of the Immigration and Nationality Act to
participate in exchange visitor programs designated by the Director of
the United States Information Agency. Work done by these exchange
visitors to carry out the purpose for which they were admitted and for
which permission has been granted by the sponsor, is excluded from
employment. Other work done by these exchange visitors is not excluded
from employment under this section.
(2) Exchange visitors (nonimmigrant aliens) may be temporarily in
the United States under subparagraph (Q) of section 101(a)(15) of the
Immigration and Nationality Act to participate in an international
cultural exchange program approved by the Attorney General. Effective
October 1, 1994, work done by these exchange visitors to carry out the
purpose for which they were admitted is excluded from employment. Other
work done by these exchange visitors is not excluded from employment
under this section.
(c) Spouse and children. Work done by a foreign student's or
exchange visitor's alien spouse or minor child who is also temporarily
in the United States under subparagraph (F), (J), (M), or (Q) of
section 101(a)(15) of the Immigration and Nationality Act is not
excluded from employment under this section unless that spouse or child
and the work that is done meets the conditions of paragraph (a) or (b)
of this section.
11. Section 404.1038 is added under the undesignated center heading
``Work Excluded From Employment'' to read as follows:
Sec. 404.1038 Domestic employees under age 18.
Domestic services you perform in a private home of your employer
are excluded from employment, regardless of the amount earned, in any
year in which you are under age 18 if domestic service is not your
principal occupation. The exclusion applies to the entire year if you
are under age 18 in any part of the year. See Sec. 404.1057.
12. In Sec. 404.1042, paragraph (c)(2) is revised to read as
follows:
Sec. 404.1042 Wages when paid and received.
* * * * *
(c) * * *
(2) We also apply this rule to domestic work in a private home of
the employer, except see Sec. 404.1057(a)(1) for the applicable dollar
amount.
* * * * *
13. Section 404.1055 is amended by revising paragraph (a), the
heading for paragraph (b), paragraph (b)(1), and the second sentence of
paragraph (c)(1) to read as follows:
[[Page 38367]]
Sec. 404.1055 Payments for agricultural labor.
(a) When cash payments are not wages. We do not include as wages
your cash payments in a calendar year after 1987 from an employer for
agricultural labor (see Sec. 404.1056) if your employer's total
expenditures for agricultural labor are less than $2500 in that year
and your employer paid you less than $150 cash remuneration in that
year for your agricultural labor. If you perform domestic service in
the private home of an employer on a farm operated for profit, we do
not include as wages the cash payments for those services if they are
less than the applicable dollar threshold described in
Sec. 404.1057(a).
(b) Exclusions for noncash payments and payments for seasonal
agricultural labor. (1) Noncash payments for agricultural labor are not
wages.
* * * * *
(c) * * *
(1) * * * If the amounts paid are less than $150, we count only
those amounts paid for agricultural labor in determining if the $2500
expenditure test is met. * * *
* * * * *
14. Section 404.1056 is amended by revising paragraph (a)(6) to
read as follows:
Sec. 404.1056 Explanation of agricultural labor.
(a) * * *
(6) If you do nonbusiness work or domestic work in the private home
of your employer, it is agricultural labor if you do the work on a farm
operated for profit. However, if you do domestic work in the private
home of your employer on a farm operated for profit, coverage of your
earnings for the domestic services is determined in the same manner as
earnings for any other domestic employee. Whether those earnings are
covered will be determined based on the threshold described in
Sec. 404.1057(a) and the other coverage rules applicable to domestic
service instead of the threshold applicable to other agricultural
employees. A farm is not operated for profit if the employer primarily
uses it as a residence or for personal or family recreation or
pleasure. (See Sec. 404.1057 for an explanation of domestic work and
Sec. 404.1058(a) for an explanation of nonbusiness work.)
* * * * *
15. Section 404.1057 is amended by revising paragraphs (a) (1), (2)
and (3) and the last sentence in paragraph (a)(4) to read as follows:
Sec. 404.1057 Domestic service in the employer's home.
(a) * * *
(1) The applicable dollar threshold. We do not include as wages
cash payments that an employer makes to you in any calendar year for
domestic service in the employer's private home if the cash pay in that
calendar year is less than the applicable dollar threshold. The
threshold per employer is $1000 in calendar year 1995. In calendar
years after 1995, this amount will be subject to adjustment in $100
increments based on the formula in section 215(a)(1)(B)(i) of the Act
to reflect changes in wages in the economy. Non-cash payments for
domestic service are not counted as wages.
(2) How evaluation is made. We apply the applicable dollar
threshold described in paragraph (a)(1) of this section based on when
the payments are made to you rather than when the pay is earned. To
count toward the applicable dollar threshold, payment must be made to
you in cash (including checks or other forms of money). We apply the
applicable dollar threshold only to services performed as a domestic
employee. If an employer pays you for performing other work, the cash
pay for the nondomestic work does not count toward the applicable
dollar threshold domestic service pay required for the remuneration to
count as wages.
(3) More than one domestic employer. The applicable dollar
threshold as explained in paragraph (a)(1) of this section applies to
each employer when you perform domestic services for more than one
employer in a calendar year. The wages paid by more than one employer
for domestic services may not be combined to decide whether you have
been paid the applicable dollar threshold or more in a calendar year.
The standard applies to each employee when an employer has two or more
domestic employees during a calendar year.
(4) * * * If an employer uses this method to report a cash payment
to you for domestic services in his or her private home in a calendar
year, he or she must use the same method to report payments to other
employees in that year for similar services.
* * * * *
16. Section 404.1068 is amended by revising paragraph (d) to read
as follows:
Sec. 404.1068 Employees who are considered self-employed.
* * * * *
(d) Employees of a foreign government, an instrumentality wholly
owned by a foreign government, or an international organization. If you
are a United States citizen and perform the services that are described
in Sec. 404.1032, Sec. 404.1033(a), or Sec. 404.1034(a), you are
engaged in a trade or business if the services are performed in the
United States and are not covered as employment based upon
Sec. 404.1034(c).
* * * * *
Subpart M--[Amended]
17. The authority citation for subpart M of part 404 continues to
read as follows:
Authority: Secs. 205, 210, 218, and 702(a)(5) of the Social
Security Act (42 U.S.C. 405, 410, 418, and 902(a)(5)); sec. 12110,
Pub. L. 99-272, 100 Stat. 287 (42 U.S.C. 418 note); sec. 9002, Pub.
L. 99-509, 100 Stat. 1970.
18. Section 404.1206 is amended by revising the introductory text
of paragraph (a), paragraphs (a)(6) and (a)(7), by adding a new
paragraph (a)(8), and by revising the last sentence in paragraph (f)(2)
to read as follows:
Sec. 404.1206 Retirement system coverage groups.
(a) General. Section 218(d) of the Act authorizes coverage of
services of employees in positions under a retirement system. For
purposes of obtaining coverage, a system may be considered a separate
retirement system authorized by sections 218(d)(6) (A) or (B) or 218(l)
of the Act. Under these sections of the Act a State may designate the
positions of any one of the following groupings of employees as a
separate retirement system:
* * * * *
(6) The employees of each institution of higher learning, including
junior colleges and teachers colleges;
(7) The employees of a hospital which is an integral part of a
political subdivision; or
(8) The employees in police officers' positions or firefighters'
positions, or both.
* * * * *
(f) * * *
(2) * * * This rule also applies to the coverage of services in
police officers' and firefighters' positions in States and interstate
instrumentalities as discussed in Sec. 404.1212(c).
19. Section 404.1210 is amended by revising paragraph (e) to read
as follows:
Sec. 404.1210 Optionally excluded services.
* * * * *
(e) For modifications executed after 1994, services performed by
election officials or election workers if the payments for those
services in a calendar year are less than $1000 for calendar years
after 1994 and before 2000, or, for calendar years after 1999,
[[Page 38368]]
are less than the $1000 base amount as adjusted pursuant to section
218(c)(8)(B) of the Act to reflect changes in wages in the economy. We
will publish this adjustment of the $1000 base amount in the Federal
Register on or before November 1 preceding the year for which the
adjustment is made.
20. Section 404.1211 is amended by revising paragraph (d) to read
as follows:
Sec. 404.1211 Interstate instrumentalities.
* * * * *
(d) They may provide coverage for firefighters and police officers
in positions under a retirement system.
21. Section 404.1212 is revised to read as follows:
Sec. 404.1212 Police officers and firefighters.
(a) General. For Social Security coverage purposes under section
218 of the Act, a police officer's or firefighter's position is any
position so classified under State statutes or court decisions.
Generally, these positions are in the organized police and fire
departments of incorporated cities, towns, and villages. In most
States, a police officer is a member of the ``police'' which is an
organized civil force for maintaining order, preventing and detecting
crimes, and enforcing laws. The terms ``police officer'' and
``firefighter'' do not include services in positions which, although
connected with police and firefighting functions, are not police
officer or firefighter positions.
(b) Providing coverage. A State may provide coverage of:
(1) Police officers' and firefighters' positions not under a
retirement system as part of an absolute coverage group; or
(2) Police officers' of firefighters' positions, or both, as part
of a retirement system coverage group.
(c) Police officers and firefighters in positions under a
retirement system. All States and interstate instrumentalities may
provide coverage for employees in police officers' or firefighters'
positions, or both, which are under a retirement system by following
the majority vote referendum procedures in Sec. 404.1206(d). In
addition, all interstate instrumentalities and the States listed in
Sec. 404.1207 may use the desire for coverage procedures described in
Sec. 404.1207.
[FR Doc. 96-18358 Filed 7-23-96; 8:45 am]
BILLING CODE 4190-29-P