TN 21 (06-11)

RS 00301.315 Simplified Method of Determining Quarters of Coverage (QC) for 1937 - 1950 Period

A. Definition of elapsed year (EY)

EY is the number of years after 1950 or the year of attainment of age 21, whichever is later, and before the year that the wage earner attained age 62 or died, whichever is earlier.

For males born before 01/02/1911, count the EY up to the year the number holder (NH) attains age 65 or dies, whichever is earlier. For males born after 01/01/1911 through 01/01/1913, count the EY up to 1975, or the year of death, if earlier.

B. Policy for simplified method of determining QCs for 1937-1950

1. Requirements

  1. a. 

    Under the 1967 Amendments, use the simplified method if:

    • there are at least seven EYs; and

    • the NH is fully insured based on the number of QCs derived under this method plus the number of QCs credited after 1950.

  2. b. 

    The 1990 Amendments eliminated the seven EY test. If the worker has at least $400 of earnings before 1951, we deem the NH to have at least one QC for the period.

If we find the NH is not insured or deemed to have one QC before 1951 under the simplified method, examine his record for the 1937-1950 period to determine the number of QCs posted.

NOTE: The simplified method does not apply to disability claims.

2. Effective dates

This provision applies for Retirement Insurance Benefit (RIB) claims filed after 01/02/1968. In death cases, it applies if the NH died after 01/02/1968 without being entitled to RIB or Disability Insurance Benefits (DIB).

The 1990 Amendments apply for applications effectively filed 06/1992 or later. The NH must not be insured for Special Age 72 or Transitionally Insured benefits in the month of filing.

3. Calculation

The NH is deemed to have one QC for each $400 of his total wages before 1951. Wages before 1951 include:

  • Remuneration credited to the earnings record (ER) (regardless of the yearly maximum), and

  • gratuitous military service credits, and

  • creditable railroad compensation.

C. Examples

1. Insured based on simplified method

John Doe born 09/08/1926 filed an application in 09/1991. He needs 37 QCs to be fully insured, and has 23 QCs after 1950. Total wages posted to his ER in the 1937-1950 period are $5,700. The simplified method applies, as there are at least seven EYs and we insured him by this method, 23 QCs after 1950 and 14 QCs ($5,700 divided by $400 = 14) in the 1937-1950 period.

Had there been a total of only $5,500 of wages for the 1937-1950 period, the simplified method would not apply because 13 QCs allocated for the 1937-1950 period do not give the NH insured status. Under these circumstances, the NH's actual QCs for the 1937-1950 period must be determined.

2. Last required QC acquired retroactive period

Do not use this simplified QC method when the NH acquires the last required QC or qualifying quarter for insured status during the retroactive period for which the application is effective and an earlier month of entitlement is possible. As in the example above, the NH needs 37 QCs with 14 QCs allocated to the pre-1951 period. The NH acquired his 37th QC in the 09/1991 quarter. Office of Earnings Operations will determine the number of QCs credited to the NH's ER in the pre-1951 period. If the number of QCs exceeds 14, insured status and the first month for which benefits may be payable is based on the regular method of determining QCs.

To Link to this section - Use this URL:
RS 00301.315 - Simplified Method of Determining Quarters of Coverage (QC) for 1937 - 1950 Period - 06/23/2011
Batch run: 06/23/2011