---
kind: "section"
citation: "20 C.F.R. § 404.1205"
title: "20"
number: "404.1205"
heading: "Absolute coverage groups."
url: "https://uscodex.org/cfr/20/404.1205"
---

# §404.1205. Absolute coverage groups.

- (a) **General.** An absolute coverage group is a permanent grouping of employees, e.g., all the employees of a city or town. It is a coverage group for coverage and reporting purposes. When used for coverage purposes, the term refers to groups of employees whose positions are not under a retirement system. An absolute coverage group may include positions which were formerly under a retirement system and, at the State's option, employees who are in positions under a retirement system but who are ineligible (see [§ 404.1208](/cfr/20/404.1208.md)) to become members of that system.
- (b) **What an absolute coverage group consists of.** An absolute coverage group consists of one of the following employee groups:
  - (1) State employees performing services in connection with the State's governmental functions;
  - (2) State employees performing services in connection with a single proprietary function of the State;
  - (3) Employees of a State's political subdivision performing services in connection with that subdivision's governmental functions;
  - (4) Employees of a State's political subdivision performing services in connection with a single proprietary function of the subdivision;
  - (5) Civilian employees of a State's National Guard units; and
  - (6) Individuals employed under an agreement between a State and the U.S. Department of Agriculture as agricultural products inspectors.
- (c) **Designated coverage groups.** A State may provide coverage for designated (i.e., selected) absolute coverage groups of the State or a political subdivision. When coverage is extended to these designated groups, the State must specifically identify each group as a designated absolute coverage group and furnish the effective date of coverage and any optional exclusion(s) for each group. Where a State has provided coverage to designated absolute coverage groups, the State may, by modifying its agreement, extend that coverage to any absolute coverage group in the State.

## Notes

### Authority

Authority: Secs. 205, 210, 218, and 702(a)(5) of the Social Security Act (42 U.S.C. 405, 410, 418, and 902(a)(5)); sec. 12110, Pub. L. 99-272, 100 Stat. 287 (42 U.S.C. 418 note); sec. 9002, Pub. L. 99-509, 100 Stat. 1970.

### Source

Source: 53 FR 32976, Aug. 29, 1988, unless otherwise noted.