A. On behalf of this state the governor may enter into an agreement with the commissioner of social security, consistent with this article, for the purpose of extending the benefits of the federal old age and survivors insurance system to employees of this state or any political subdivision of this state with respect to services that are specified in the agreement and that constitute employment.

Terms Used In Arizona Laws 38-702

  • Commissioner of social security: includes any individual to whom the commissioner of social security has delegated any of the commissioner's functions under the social security act with respect to coverage under the act of employees of states and their political subdivisions. See Arizona Laws 38-701
  • Employment: means any service performed by an employee in the employ of this state or a political subdivision of this state, for the employer, except service that in the absence of an agreement entered into under this article would constitute "employment" as defined in the social security act, or service that under the social security act may not be included in an agreement between this state and the commissioner of social security entered into under this article. See Arizona Laws 38-701
  • Political subdivision: includes counties, incorporated cities or towns and school districts in this state, and any other political subdivision as defined in article XIII, section 7, Constitution of Arizona. See Arizona Laws 38-701
  • Social security act: means the federal social security act (42 United States Code chapter 7), including regulations and requirements issued pursuant to that act. See Arizona Laws 38-701
  • State agency: means the state agency that is designated by the governor to serve as the social security administrator for this state under the federal old age and survivors insurance system. See Arizona Laws 38-701

B. The agreement may contain provisions relating to coverage, benefits, contributions, effective date, modification of the agreement, notification of dissolution of entities, administration and other appropriate provisions to which the state agency and commissioner of social security agree, except that the agreement shall provide in effect the following, unless otherwise required under the social security act:

1. Benefits shall be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though the services constituted employment within the meaning of title II of the social security act.

2. The agreement is effective with respect to services in employment covered by the agreement performed after a date specified in the agreement, but in no event may it be effective with respect to services performed before the first day of the calendar year in which the agreement is entered into or in which the modification of the agreement making it applicable to the services is entered into, but an agreement or modification of an agreement entered into within the period permitted for retroactive coverage of employees under the agreement by title II of the social security act may provide in the agreement or modification of the agreement that the agreement or modification of the agreement is effective with respect to services performed after January 1, 1951, or any date after that date.

3. All services that constitute employment and that are performed in the employ of this state by employees of this state are covered by the agreement.

4. All services that constitute employment performed in the employ of an eligible political subdivision of this state and that are covered by a plan that is in conformity with the terms of the agreement and that has been approved by the state agency under section 38-703 are covered by the agreement.

5. All services described in either paragraph 3 or 4 and performed by individuals in positions covered by a retirement system with respect to which the governor has issued a certificate to the commissioner of social security pursuant to section 38-706.