§1005. Plans for coverage of employees of political subdivision and of state and local instrumentalities

A. Each political subdivision of the state and each instrumentality of the state or of a political subdivision, or of both, is hereby authorized to submit for approval by the Department of the Treasury a plan for extending the benefits of Title II of the Social Security Act1, in conformity with applicable federal law, to employees of any such political subdivision or instrumentality. Each such plan or any amendment thereof shall be approved by the Department of the Treasury if it finds that such plan, or such plan as amended, is in conformity with such requirements as are provided in regulations of the Department of the Treasury, except that no such plan shall be approved unless:

(1) It is in conformity with the requirements of the applicable federal law and with the agreement entered into under R.S. 42:1003.

(2) It provides that all services which constitute employment as defined in R.S. 42:1002 and are performed in the employ of the political subdivision or instrumentality, by any employees thereof, shall be covered by the plan.

(3) It specifies the source or sources from which the funds necessary to make the payments required by Paragraph (B)(1) of this Section and by Subsection D2 are expected to be derived and contains reasonable assurance that such sources will be adequate for such purpose.

(4) It provides for such methods of administration of the plan by the political subdivision or instrumentality as are found by the state agency to be necessary for the proper and efficient administration thereof.

(5) It provides that the political subdivision or instrumentality will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the secretary of health, education, and welfare may from time to time find necessary to assure the correctness and verification of such reports.

B.(1) Each political subdivision or instrumentality as to which a plan has been approved under this Section shall pay to the Internal Revenue Service, with respect to wages (as defined in R.S. 42:1002), at such time or times as required by federal law, contributions in the amounts and at the rate specified in the applicable agreement entered into by the Department of the Treasury under R.S. 42:1003.

(2) Every political subdivision or instrumentality required to make payments under Paragraph (1) of this Subsection is authorized, in consideration of the employee's retention in, or entry upon, employment after enactment of this Chapter, to impose upon its employees, as to services which are covered by an approved plan, a contribution with respect to wages (as defined in R.S. 42:1002), not exceeding the amount of the employee tax which would be imposed by the Federal Insurance Contributions Act3 if such services constituted employment within the meaning of that Act, and to deduct the amount of such contribution from the wages as and when paid. Contributions so collected shall be paid to the Internal Revenue Service in partial discharge of the liability of such political subdivision or instrumentality under Paragraph (1) of this Subsection. Failure to deduct such contribution shall not relieve the employee or employer of liability therefor.

Acts 1952, No. 204, §5. Amended by Acts 1955, No. 36, §5; Acts 2004, No. 280, §1, eff. July 1, 2004.

142 U.S.C.A. §401 et seq.

2R.S. 42:1005(D) was deleted by Acts 2004, No. 280.

326 U.S.C.A. (I.R.C.1939) §1400 et seq.