The Social Security Protection Act of 2004 requires employers to provide a written notice to new employees not covered by Social Security who begin work on or after January 1, 2005. The notice is provided by the Social Security Administration.
The notice informs the employees they are not covered by Social Security, but are covered by another retirement benefit. The notice provides an explanation of the effect a retirement plan benefit based on earnings not covered by Social Security can have on an employee’s Social Security benefit, such as a reduction due to the Government Pension Offset (GPO) Provision or the Windfall Elimination Provision (WEP).
Employees covered by URS who don’t contribute to Social Security must be provided with the notice for them to read and sign. Copies of the signed form must be sent to our office and filed in the members’ records, as outlined in the Social Security Protection Act of 2004.
It is the employer’s responsibility to determine their obligations under the Social Security rules and to file their Social Security exemption status with our office through completion of the Notification of Employer Social Security Coverage (EMSS-1) form (this form is only required if the employer has elected exemption under Social Security). Employers need to consider whether they are required to make contributions to a retirement plan on those employees receiving a URS allowance. If contributions to a URS retirement plan are required, employers should report their social security rate, as determined by the SSA, not to exceed 7.5%.
This information is being provided as a service to you. If you have any questions on this matter, please call the Social Security Administration at 800-772-1213 or contact your local Social Security office.