A bill to amend section 218 of the Social Security Act to make it clear that amounts paid to or on behalf of a public employee by a State or local government (including certain payments into an annuity fund) do not constitute covered wages under the State's agreement if they would not be treated as covered wages for purposes of FICA taxes in the case of a private employee.

Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to provide that, in the case of a State or Local government which has voluntarily entered an agreement to extend OASDI to its employees, amounts paid to such employees are not to be treated as covered wages if such amounts would not be treated as covered wages under the Federal Insurance Contribution Act in the case of private employment.