TN 8 (07-07)
RS 01601.450 Restrictions on SSA Use of Post-1956 Covered Military Service (MS)
Active MS pay became SS covered wages effective 01/01/1957. Deemed wages of up to $1,200 per year are granted when covered MS wages are reported for periods prior to 2002. However, this MS is not covered employment under the SS Act for any period of MS determined creditable by RRB under the RR Act.
Covered military and deemed wages must be deleted from the ER for either QC or benefit amount purposes if RRB grants credit for MS after 1956. This will only occur when a claim is filed with RRB since otherwise RRB would have no knowledge of the MS. No benefit based on MS wages after 1956 will be deemed erroneous if it was certified for payment by SSA for the month we received RRB’s notice that the MS is creditable under the RR Act or for prior months. Upon receipt of the notice from RRB, SSA will certify no further benefits based on such MS and will notify RRB of any adjustment made in the benefits (because of the deletion of the MS wages for the period creditable under the RR Act) and will specify the first month the reduction or termination is effective.
NOTE: Effective 01/01/2002, deemed wages are eliminated for all military earnings after 2001. Deemed wage credits will continue to be given for appropriate earnings for periods prior to calendar year 2002.
B. Process - RRB RR-17 Notice Of OEO Use Of Post-1956 MS
When RRB determines that a retired or disabled RR employee has completed 120 or more months of RR service or effective 01/01/2002, if less than 120 months of RR service but with at least 60 months of RR service accrued after December 31, 1995 (when an annuity application is filed) and such service includes any creditable MS after 1956, RRB will prepare and send to OEO an RR-17. The RR-17 will specify the period or periods of MS after 1956 creditable under the RR Act.
Section 210 (l) of the Social Security Act states that wages for these periods will be deleted from SSA records and the period excluded for QC or benefit computation purposes. OEO will make necessary adjustments to the earnings record. The FO or PSC will make adjustments to benefit computations.
C. OEO Action upon Receipt of RR-17 from RRB
Enter the date RR-17 was received in OEO in Part B.
Review Part A for dates of MS.
Obtain DEQY and MBR. Query MCS DW01.
Prepare detailed breakdown of earnings for the MS period indicated in Part A.
Delete the post-1956 MS and deemed wages used by RRB using the Modernized Earnings System (EM).
Annotate the EM Remarks screen: RR-17 rec mm/dd/yy – MS deleted for period mm/yy to mm/yy.
No Benefits Paid per MBR or Pending Claim per MCS
Claim is Pending
Complete Part B. Post the date the form is faxed to the FO.
Fax the RR-17 and associated material to the FO. Locate the FO Fax telephone in DOORS.
Annotate the fax cover sheet: New certified ER required.
MBR Shows Wage Earner in Benefit Status
D. FO Processing of RR-17 Received from OEO – Pending Claim
NH’s claim is pending
Review Part A for dates of MS.
Review DEQY to ensure earnings for the MS period indicated in Part A have been deleted. If the earnings are still on the ER, delete the post -1956 MS wages using current instructions. Annotate the Remarks screen in EM 2.8: RR17 rec mm/dd/yy -- MS deleted for period mm/yy to mm/yy.
Do not use the previously certified ER. Request a new certified ER on ICERS.
Process the claim using the new certified ER.
Post a Special Message to the MBR indicating the MS period deleted from the SS ER.
Complete Part C certification and check the box describing the effect of the deletion of the MS wages.
Retain the RR-17 with the claims file. If there is no claims file, fax the RR-17 to the PSC paperless fax. Indicate on the SSA-409 that all actions have been completed.
If the NH was advised of the approximate MBA and the deletion of the MS and deemed wages changes that amount, advise the NH of the change at the earliest opportunity.
Claim has been sent to the PSC
Fax all material received from OEO to the PSC paperless fax. Indicate on the SSA-409 whether action is required or all FO actions have been completed.
If action is required, check Number 26: Other, and annotate: RR-17, process per RS 01601.450.
E. Processing Service Center Action on RR-17 – Post Entitlement Actions
Award has not been processed
Review Part A for dates of MS.
Review DEQY to ensure earnings for the MS period indicated in Part A have been deleted. If the earnings are still on the ER, delete the post-1956 MS wages using current instructions. Annotate EM 2.8 Remarks: RR17 rec mm/dd/yy – MS deleted for period mm/yy to mm/yy.
Request a new certified ER and process the claim using the new certified ER.
Award has been processed
Reopen and refigure the benefit without the MS wages for the period on the RR-17. The benefit is refigured effective with the month after the month the RR-17 is received in OEO as shown in Part B.
Show the effect of the deletion of the MS wages on the benefits and the effective date of the change by completing the proper paperless disposition.
Notify the NH that covered MS earnings have been removed from the SS ER because they were used by RRB.
If entitlement is terminated, notify the affected beneficiary and follow regular recovery procedures for any overpayment.
Earmark the record by establishing the Listing Code 393 (recomputation review cases).
Post a Special Message to the MBR indicating the reason for the benefit reduction or termination. For example, benefit reduction/termination (choose one) effective mm/yy due to the deletion of MS wages for mm/yy to mm/yy.
F. RRB Use of MS - Special Claims Consideration
If the survivor claim involves an allegation of railroad work and an allegation of MS, carefully review the certified record of earnings to verify that usable periods of MS are accurately posted. If MS is not posted or posted incorrectly, follow the appropriate guidelines for earnings record corrections.
NOTE: MS periods used by RRB are not included as railroad compensation when the data is sent to SSA. Review of the SS ER is needed as periods of MS used by RRB may have been deleted from the SS ER but may now be useable by SSA. See RS 01601.450C. MS periods indicated on the remarks section of RRB Forms RR-3T or RR-80 is sufficient proof of the MS period for SSA to use in its benefit computation. In addition, MS indicated on previously forwarded Form RR-17 (that may be available in the PSC paperless system) is also sufficient proof of MS for SSA benefit purposes.
See RS 01404.205-RS 01404.230 for developing and calculating wage information for members of uniformed services and for establishing military wages based on proof of MS.
Follow current instructions for posting the military wages to the SS ER. See GN 01010.100 for special considerations in subsequent claims.
G. Exhibit-RR-17 Notice of Military Service Credited Under RRA
United States of America
Railroad Retirement Board
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