§ 136. Agreements with political subdivisions. 1. By the adoption of
a resolution in the manner provided by subdivision a of section thirty
of this chapter, any political subdivision may elect to extend old-age
and survivors insurance coverage to its eligible employees pursuant to
this article. It shall thereupon submit to the director a proposed
agreement for obtaining such coverage for such employees. Such agreement
shall include such provisions as may be required by the director to
effect the purposes of this article.

2. The director shall approve any such agreement or any modification
thereof which is in conformity with this article and the regulations of
the director, and such agreement or modification shall become effective
in accordance with the terms of such approval. Subject to the provisions
of the federal social security act, any such agreement may be made
retroactive where authorized by the federal social security act, in
which event necessary contributions shall be made to the contribution
fund by the political subdivision and the employees covered by such
agreement for the period of employment prior to the date of approval of
such agreement. No agreement or modification thereof shall be approved
unless:

a. It is in conformity with the requirements of the federal social
security act and with the agreement authorized to be entered into by
section one hundred thirty-three of this chapter.

b. It applies to all services which constitute employment and which
are performed in the employ of the political subdivision, provided,
however, that the director may permit such political subdivision to
exclude from coverage under such agreement, in accordance with the
federal social security act, classes of employment where the director
shall determine that old-age and survivors insurance coverage for such
classes is impracticable.

c. It provides for such methods of administration of the agreement by
the political subdivision as are found by the director to be necessary
for the proper and efficient administration of the agreement.

d. It provides that the political subdivision will make such reports,
in such form and including such information, as the director may from
time to time request, and comply with such requirements as the director
or the federal secretary may from time to time find necessary to assure
the correctness and verification of such reports.

e. 1. Notwithstanding any other provision of law, the board of
estimate, if there be one, or the local legislative body where there is
no board of estimate, of any political subdivision, in its discretion,
may exclude from eligibility for membership in any local pension or
retirement system maintained by such political subdivision, or any
agency thereof, any class or classes of offices or positions in the
service of such political subdivision, or any agency thereof, where
coverage of such class or classes by old-age and survivors insurance
under the federal social security act would, in its judgment, be
advantageous to those serving in such class or classes. The exclusion of
any such class or classes shall not become effective until an agreement
shall have been entered into with the state of New York to extend
old-age and survivors insurance coverage for such class or classes as
provided in this article. The exclusion of any such class or classes
shall not affect the membership of any officer or employee in any such
pension or retirement system.

2. Nothing in this section shall be construed to deny to any member of
any local pension or retirement system maintained by a political
subdivision, or any agency thereof, of credit therein for service in any
position for any period during which old-age and survivor's insurance
coverage under the federal social security act was provided for such
position and during which incumbents of such position were ineligible
for membership in any such pension or retirement system.

3. The power to exclude employees from eligibility for membership in a
local pension or retirement system pursuant to subparagraph one of this
paragraph e shall terminate with respect to any such system on the day
after the modification extending the old-age and survivors insurance
system to any position covered by such system is executed.