(1) it is in conformity with the requirements of the Social Security Act² and with the agreement entered into under section four;³

(2) it provides that all services which constitute employment, as defined in section two,⁴ and are performed in the employ of the political subdivision or instrumentality thereof by employes thereof, shall be covered by the plan, except that it may exclude services rendered by individuals to whom section 218(c)(3) and (5) of the Social Security Act⁵ is applicable;

(3) it specifies the source or sources from which the funds necessary to make the payments required by clause (1) of subsection (c) and by subsection (d) of this section are expected to be derived, and contains reasonable assurance that such sources will be adequate for such purpose;

(4) it provides for such methods of administration of the plan by the political subdivision or instrumentality thereof as are found by the State Agency to be necessary for the proper and efficient administration of the plan;

(5) it provides that the political subdivision or instrumentality thereof will make such reports, in such form and containing such information as the State Agency may from time to time require, and comply with such provisions as the State Agency or the Federal Agency may from time to time find necessary to assure the correctness and verification of such reports; and,

(6) it authorizes the State Agency to terminate the plan in its entirety, in the discretion of the State Agency, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the State Agency and may be consistent with the provisions of the Social Security Act.

(c)(1) Each political subdivision or instrumentality thereof as to which a plan has been approved under this section shall pay the established social security percentage at the prescribed time or times to the designated agent as required by the Federal Government.

(2) Each political subdivision or instrumentality thereof required to make payments under clause (1) of this subsection is authorized, in consideration of the employe's retention in or entry upon employment after enactment of this act, to impose upon each of its employes, as to services which are covered by an approved plan, a contribution with respect to his wages (as defined in section two of this act), not exceeding the amount of contributions by Commonwealth employes, as provided in subsection (a) of section five of this act,⁶ and to deduct the amount of such contribution from his wages as and when paid. Contributions so collected shall be paid as designated by the Federal Government.