1005.Retirement System Defined
1005.1What is a retirement system?
A retirement system is any pension, annuity, retirement or similar fund or system maintained by a State or local government or instrumentality. The purpose of the system is to provide retirement benefits to participating employees. The Internal Revenue Service has the responsibility for determining whether a retirement system not covered by a Section 218 Agreement (see §1000.2) qualifies to be exempt from mandatory Social Security and Medicare coverage. (See §1000.5.)
1005.2Who determines if a worker is a member of a retirement system?
The State determines if you are a member of a retirement system under State law. Generally, you are considered a member of a retirement system if you can qualify for benefits under that system based on your present job.
Last Revised: Oct. 11, 2005