§88-212 Federal-state agreement. The state agency, with the approval of the governor, may enter on behalf of the State into an agreement with the Secretary of Health and Human Services, consistent with the terms and provisions of this part, for the purpose of extending the benefits of the federal old age and survivors insurance system to employees of the State or any political subdivision thereof with respect to services specified in the agreement which constitute "employment" as defined in section 88-211. The agreement may contain such provisions relating to coverage, benefits, contributions, effective date, modification, and termination of the agreement, administration, and other appropriate provisions as the state agency and Secretary of Health and Human Services, shall agree upon, but, except as may be otherwise required by or under the Social Security Act as to the services to be covered, the agreement shall provide in effect that:

(1) Benefits will 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 State will pay to the Secretary of the Treasury, at such time or times as may be prescribed under the Social Security Act, contributions with respect to wages (as defined in section 88-211), equal to the sum of the taxes which would be imposed by the Federal Insurance Contributions Act if the services covered by the agreement constituted employment within the meaning of that Act;

(3) Such agreement shall be effective with respect to services in employment covered by the agreement performed after a date specified therein but in no event may it be effective with respect to any such services performed prior to the first day of January 1951;

(4) All services which constitute employment as defined in section 88-211 and are performed in the employ of the State by employees of the State, shall be covered by the agreement; provided that except for purposes of paragraph (6) of [this] section, services of state employees may be covered under the agreement at such times, as members of the coverage group or groups (as defined in section 218(b)(5) of the Social Security Act), and with such optional exclusions (as permitted by section 218(c) of the Social Security Act, including section 218(c)(3)(C) thereof) as may be decided upon by the state agency with the approval of the governor, as evidenced by the governor's approval of the pertinent agreement or modification thereto;

(5) All services which (A) constitute employment as defined in section 88-211, (B) are performed in the employ of a political subdivision of the State, and (C) are covered by a plan which is in conformity with the terms of the agreement and has been approved by the state agency under section 88-218, shall be covered by the agreement;

(6) As modified the agreement shall include all service described in paragraph (4) and may include all service described in paragraph (5) of this section and performed by individuals in positions covered by a retirement system with respect to which the governor has issued a certificate to the Secretary of Health and Human Services pursuant to section 88-219. [L 1953, c 217, §3; RL 1955, §6-191; am L 1957, c 284, §§3, 4, 6; am L 1959, c 194, §2; HRS §88-212; gen ch 1985; am L 2004, c 176, §5]