Employers
DRS is now the Old-Age and Survivors Insurance Program Administrator for Washington State
Effective July 1,2009 the Department of Retirement Systems (DRS) became the Social Security Administrator of the Old- Age and Survivors Insurance (OASI) Program. Responsibilities include administration of the state’s Section 218 agreement.
As the new administrator, DRS will assist all of Washington’s public employers by serving as a facilitator and communication bridge between those employers and the Social Security Administration (SSA) and Internal Revenue Service (IRS). The SSA and IRS are the two principal federal agencies responsible for coverage, benefits and tax withholding associated with Social Security and Medicare.
Divided Referendum Medicare-Only
The 2008 Legislature passed a law that allows local governments to request a divided referendum in which employees can vote to participate in Medicare. It only affects employees who:
- Do not currently pay Medicare taxes;
- Were hired before April 1, 1986; and
- Have been in continuous employment through the date of the referendum.
For more information about how and when to request a divided referendum, see:
OASI and the Section 218 Agreement History
When the federal Social Security Act began in 1935, public employees were not eligible for Social Security benefits. This was due to a Constitutional question regarding the federal government’s power to tax state and local governments. Consequently, many government employees were without a retirement plan.
In 1951, Section 218 of the Act authorized states to voluntarily elect Social Security coverage for public employees who were not already covered under a retirement plan. These Federal-State Agreements, often referred to as Section 218 Agreements, were entered into with the SSA. Since 1951, Employment Security Department has been responsible for administering the Social Security and Medicare coverage program, also known as Old Age Survivor Insurance (OASI) for all state and local (public) governmental employers throughout the State of Washington.
Contact Information
For Section 218 coverage or for Medicare Part A Hospital insurance (Medicare only) coverage (HB 2510 Divided Referendum) information or questions, contact DRS:
DRS OASI Program line at (360) 664-7316
Additional Resources
Social Security Administration