TN 2 (09-85)

GN 01704.510 Lag Earnings

A. General

1. WHAT TO DEVELOP

BETs are responsible for developing an NH's lag earnings if alleged and if needed by a foreign agency. Allegations of lag earnings can be found on all applications. In addition, a claimant's statement alleging lag can occasionally be found on other forms in the file.

2. WHAT TO REQUEST

  1. Acceptable proof of lag wages are:

    1. W-2 forms;

    2. Computer-prepared wage statement;

    3. Form SSA-1002 (Statement of Agricultural Employer);

    4. Form SSA-7011 (Statement of Employer);

    5. Pay envelopes, vouchers, pay checks, tax receipts or wage statements;

    6. Form SSA-768 (Certification of Evidence of Wages).

  2. Acceptable proofs of self-employment income (SEI) are tax returns (Schedules SE, Schedule C, Schedule F, Form 1065 or Form 1040).

    NOTE: A self-employed individual must have earned at least $400 in a year for SEI to be credited.

    When proof of lag earnings is in file, refer the claim to a CA for posting to the SSA-794TR. In addition, any questions concerning the validity of evidence of lag earnings should be referred to a CA or CATA.

B. Italy

Obtain proof of an NH's alleged lag earnings through the quarter of filing or death for every claim filed under the U.S./Italian totalization agreement.

C. Germany

Do not request proof of lag earnings for Germany; however, if lag earnings are alleged, annotate part IV of the Form SSA-2960-U2-GE, “Additional earnings alleged for (alleged period). Please advise if you need quarter of coverage information for this period.” If the German agency requests lag information, develop it.

D. Norway

Develop lag earnings for Norway as follows:

  1. For disability claims, obtain the NH's earnings through the quarter of filing.

  2. For survivor claims, obtain the NH's earnings through the quarter of death and the surviving spouse's earnings through quarter of filing.

    NOTE: If the claims material contains no information about the surviving spouse's lag earnings, contact him/her to determine whether lag development is necessary.

  3. Do not obtain lag earnings for retirement (old-age) claims if at least 2 years (eight U.S. QCs) are shown on the SSA-794TR.

E. Ottawa/Quebec

Do not routinely request proof of lag earnings for Canada; however, if lag earnings are alleged, annotate the remarks section of the Form SSA-2960-U3-CQ, “Additional earnings alleged for (alleged period). Please advise if you need quarter of coverage information for this period.” If the Canadian agency requests lag information, develop it.

F. Other Agreement Countries

The agencies of the other countries of agreement do not need U.S. lag earnings information routinely. However, if the agencies request this information, comply with the request.


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