The 1958 Modification Plaintiff Village of Palatine's final argument is based upon an alleged 1958 modification of the Palatine/State agreement which allegedly violated the following provision of that agreement: (C) Services covered This agreement includes all services performed by individuals as employees of the POLITICAL SUBDIVISION and instrumentalities thereof, except: (1) Any service performed by an employee in a position which, on the date specified under part (J) of this agreement, or on the effective date of any modification thereof, whichever is later, is covered by a retirement system. Plaintiff argues that a 1958 modification to the agreement prohibited the continued coverage under the system of Palatine policemen, who were then covered under the Illinois Pension Code. We disagree. The "modification" alluded to by plaintiff was merely a substitution of the Illinois Municipal Retirement Fund for the State Employee's Retirement System, the original party to the agreement. The type of substantive modification referred to in C, we believe, is one which would add employees to the coverage group. This conclusion is supported by ¶F of the agreement which sets forth the procedure for modifying the agreement: This agreement will be modified at the request of the POLITICAL SUBDIVISION to include additional employees or additional services not now included in this agreement, such modification to be consistent with the provision of Section 218 of the Social Security Act. Section 218, referred to in¶F, provides that the Secretary shall modify an agreement with the State, if the State requests, only to include new employees. 42 U.S.C. §418(c) (4). We note also that, for reasons already discussed, C could not be given the interpretation plaintiffs suggest consistent with the Act. Conclusion For the foregoing reasons, the motion to dismiss the complaint is granted. SECTIONS 209(b) and (d) and 218 (42 U.S.C. 409(b) and (d) and 418) STATE AND LOCAL COVERAGE-WAGES-STATUS OF REMUNERATION PAID TO PUBLIC EMPLOYEES ABSENT FROM WORK DUE TO ILLNESS 20 CFR 404.1027(b) (THIS RULING MODIFIES SSR 72-56) SSR 79-31 Payments to employees of State and local governments whose services are covered by a Federal-State agreement under section 218 of the Social Security Act (Act) and who are absent from work due to illness, are excluded from wages under section 209(b) of the Act as payments "on account of sickness" if the following conditions are met: 1. The payments must be made under a sick leave plan or system established 2. The plan must provide for employees generally, employees generally and 3. The employer must have legal authority to make the payments “on ac- 4. The payments must be made solely "on account of sickness" and not be These payments, if not made under a sick leave plan or system, are excluded from wages under section 209(d) of the Act as payments "on account of sickness" if the following conditions are met: 1. The payments must be made after the expiration of six calendar months 2. The employer must have legal authority to make the payment "on ac- ILLUSTRATIVE CASES 1. Hospital District X in the State of Y has established a sick leave plan for its employees. Under the plan employees acquire one day of sick leave for each month of service. Sick leave may be used only in the event of the employee's illness or accident disability. Employees may be required, at the hospital district's option, to submit a doctor's statement to justify any use of sick leave. The hospital district's accounting department maintains records of both sick leave used and expenses in connection with this use. These records are kept separate from the other uses and expenses, such as regular salary payments and vacation leave. The hospital district was created under a provision of State law which gives it the power to do any and all things necessary to operate the hospital. This power includes the right to levy taxes, to employ personnel, to fix their compensation, to make expenditures for its employment overhead, and to adopt rules and regulations neccessary for the hospital's operation. No other provision of State law or the State constitution restricts the hospital district's authority to pay "on account of sickness." Accordingly, payments made under the hospital district's sick leave plan are excluded from wages under section 209(b) of the Act. The hospital district has the legal authority to pay "on account of sickness," and the creation of a sick leave plan with separate accounting for sick leave use and expenditures is evidence that this authority has been exercised. 2. City A in the State of B has established a sick leave plan for its employees. Under the plan employees acquire 4 hours of sick leave each 2week pay period. Sick leave for absences of more than 5 work days may not be granted without a doctor's statement on the reason for the absence. The city's governing body has passed an ordinance declaring the city's policy that payments to employees absent from work on sick leave are intended as payments "on account of sickness" and not as a continuation of salary. The attorney general of State B has issued an opinion holding that, while the State does not have the legal authority to pay State employees "on account of sickness" from its regular salary account from funds appropriated for salary purposes, there is no such restriction applicable under State law to its political subdivisions. Accordingly, the payments to the employees of City A absent on sick leave are excluded from wages under section 209(b) of the Social Security Act as payments "on account of sickness." The opinion of the attorney general of State B plus the local ordinance adopted by the governing body of City A establish that the city has the legal authority to pay "on account of sickness," and the ordinance and creation of the sick leave plan are evidence that this authority has been exercised. 3. Village C in the State of B does not have a sick leave plan. Employees are generally paid only for the time they actually work. Employee D is injured in an automobile accident on May 30 and is hospitalized until October 1. Employee D continues to recuperate at home thereafter and returns to work on February 10. Because of employee D's long and faithful service, on June 15, the governing body of Village C passes a resolution to set up a special fund to continue payments to employee D in amounts equal to his regular salary. The payments made from this fund prior to December 1 are not excluded from wages as payments on account of sickness. Although Village C has the legal authority to pay on account of sickness, as indicated by the State attorney general's opinion, and has exercised this authority by its resolution of June 15, the absence of a sick leave plan means that only payments made more than 6 months after the last month employee D worked are excluded from wages as payments on account of sickness. The payments on and after December 1 are excluded under section 209(d) of the Act. This ruling modifies SSR 72-56 by clarifying its application to sick leave payments made to State and local government employees covered under a section 218 Federal-State agreement. Disability Disability Insurance Benefits - Disability Insurance Benefits Insured Status-Federal Civilian Substantial Gainful Activity (SGA) Disability-Reduction of Benefits Due to Receipt of Workmen's Disability-Refusal to Accept Vocational Rehabilitation Services - PPS-5 . . . . Disability Insurance Benefits- Page 334 . 337 340 342 344 348 352 . 355 Federal Coal Mine Health and Black Lung Benefits - Definition of Federal Coal Mine Health and Safety Black Lung Benefits - Death of Miner Federal Coal Mine Health and Safety Federal Coal Mine Health and Safety Federal Coal Mine Health and Safety Act of 1969 as Amended-Considera- 385 388 392 395 400 402 410 412 |