About Us

The Colorado Public Employees' Social Security (PESS) Program is responsible for administering the Social Security and Medicare coverage program for all state and local (public) governmental employers throughout the State of Colorado. PESS Program's responsibilities include assisting Colorado's public employers/employees by serving as a liaison with the United States Social Security Administration (SSA) and Internal Revenue Service (IRS), which are the two principal federal agencies responsible for coverage, benefits, and tax withholdings associated with Social Security and Medicare.

The information on this website pertains to Social Security and Medicare coverage, benefits, and tax withholding requirements for state and local government employees. Note: The PESS program is unable to assist individuals with Social Security benefit claims. Refer to your My Social Security Account for assistance.

For questions, email: cdle_pess@state.co.us.

History

When the U.S. Social Security Act was first adopted in 1935, state and local government (public) employees were excluded due to concerns related to the federal government’s authority to tax sovereign governments, such as the states.  Since January 1, 1951, federal law made Social Security coverage available to states and local governments through voluntary agreements with the Social Security Administration. The voluntary coverage agreements are commonly referred to as "Section 218 Agreements" because that is the section number of the Social Security Act that permits states to enter into such agreements on behalf of state and local government (public) employers and their employees.  Each state adopted enabling legislation to incorporate those amendments to the Social Security Act, and named a state agency or department for administration of the agreements, including designating a state official to serve as the State Social Security Administrator.  The Colorado Department of Labor and Employment has statutory responsibility for administering the applicable federal laws on behalf of the entire State of Colorado and its local governments and political subdivisions.  Federal regulations (20 Code of Federal Regulations §404.1204) requires each State to designate officials to act on behalf of the State as the State Social Security Administrator.

Federal tax requirements that apply to state and local government (public) employers and employees differ from those that apply to private sector employers and employees. This website provides information about these differences and guidance on the compliance requirements for public employers/employees and public pension systems enumerated in the U.S. Internal Revenue Code (e.g., the Federal Insurance Contributions Act “FICA”) and the U.S. Social Security Act.  Refer to the  “Key Dates” document for significant federal dates and events that apply to state and local governments in this area. 

Mission

The Public Employees’ Social Security (PESS) Program facilitates compliance by all public employers/ employees and public retirement systems in Colorado with the U.S. Social Security Act, the U.S. Internal Revenue Code, and applicable Colorado laws related to Social Security and Medicare tax coverage and benefits, as well as public pension system requirements.

Legal Authority

Colorado's Public Employees' Social Security (PESS) statute, C.R.S. § Section 24-53-101 et seq., as amended, is the state’s enabling legislation for compliance with the U.S. Social Security Act, particularly Sections 210 and 218 (codified as 42 U.S.C. § 410 and § 418, as amended). 

Customer Base

PESS serves the State of Colorado as an employer and its employees, the Colorado Department of Labor and Employment (CDLE), all local government employers (currently totaling over 3,600), their employees statewide (currently totaling nearly 200,000), and their legal and financial advisors.  PESS also serves all of the administrators and members of all of Colorado’s public pension plans, such as Public Employees’ Retirement Association of Colorado (COPERA) and the Fire-Police Pension Plan of Colorado (FPPA). For current statistics, refer to: Colorado Department of Local Affairs and Colorado Active Local Governments.)

For additional information, refer to the Federal-State Reference Guide (IRS Pub. 963) or the Government Finance Review article entitled Common Errors in State and Local Government FICA and Public Retirement System Compliance, or contact the Colorado State Social Security Administrator at 303-318-8060 or joann.long@state.co.us.