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This provision eliminates gaps in protection for Federal employees, particularly those who shift between Federal employment and jobs already covered under Social Security. In addition, over the long run, windfall Social Security benefits will be eliminated for these employees. The provision increases revenues by $9.4 billion for 1984-89 and has a long-range saving of .28 percent of taxable payroll.

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Prohibit Termination of Coverage of State and Local Government Employees

Prohibits States from terminating coverage of State and local government employees if the termination has not gone into effect by the date of enactment (4/20/83). Under prior law, a State could terminate coverage for groups of State and local employees by giving 2 years' advance written notice, providing the coverage had been in effect for at least 5 years. Also, permits State and local groups whose coverage has been terminated to be covered again. Prior law prohibited a terminated group from being covered again. This provision avoids gaps in protection for State and local employees (and their families) whose coverage would otherwise have been terminated. Further, it reduces the loss to the trust funds due to payment of "windfalls"--benefits which represent a high return on Social Security taxes for terminated workers compared with the lower return for those with a lifetime of covered work. The provision increases revenues by $3.2 billion for 1983-89 and has a long-range saving of .06 percent of taxable payroll.

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https://www.ssa.gov/history/1983amend2.html