June 8, 2008 by admin

1020. Termination of Section 218 Agreements

1020.1 Can a Section 218 agreement be terminated?

No. A State may not terminate a Section 218 agreement (see §1000.2) either in its entirety or with respect to any coverage group, on or after April 20, 1983. The prohibition against terminating Section 218 agreements applies to any agreement in effect on April 20, 1983, regardless of whether a notice of termination was in effect on that date.

Prior to 1983, States could terminate a Section 218 agreement, in part or entirely, under certain specified conditions.

The prohibition against terminating Section 218 agreements also applies to involuntary terminations for failure to comply with the agreement. This includes partial terminations in cases where an entity has been legally dissolved.

Note: States and interstate instrumentalities may modify their agreements to cover groups previously terminated.

1020.2 What should be done if an entity no longer exists?

There are instances where an entity is legally dissolved or is no longer in existence. When an entity is dissolved, the State must notify SSA and submit evidence of the dissolution. SSA notifies the State in writing whether the evidence is acceptable documentation that the entity no longer exists.

Last Revised: Oct. 17, 2005