SSR 62-14. WAGES -- RAILROAD COMPENSATION CREDITABLE UNDER SOCIAL SECURITY ACT

M filed an application for old-age insurance benefits at age 87. His

application, filed in June 1961, can entitle him to benefits beginning

June 1960 if he was fully insured in that month. Since he attained age 65

before July 1954, he is fully insured in June 1960 if by the end of that

month he had at least 6 quarters of coverage.

His social security earnings record showed no earnings at all, and on

such record he would have no quarters of coverage. However, in connection

with his application, M stated that he had worked as an employee of a

railroad during several years, all occurring after 1936, but had never

filed application for an annuity under the Railroad Retirement Act. This

statement was verified by the Railroad Retirement Board, which certified

the following additional information to the Social Security

Administration: M had performed railroad service in 48 months during the

period 1942-1946, and was credited for those years with compensation

totalling $1,387 and with 17 compensation quarters of coverage under the

Railroad Retirement Act.

M's entitlement to old-age insurance benefits thus depends upon whether

the compensation for his railroad service is creditable as wages under the

Act; if it is not creditable, M is not fully insured and cannot be

entitled to the benefits claimed.

As pertinent in this case, wages are defined in section 209 of the Act as

remuneration for employment; employment is defined in section 210(a) as

service performed by an employee for an employer, except that certain

types of service are excluded. Among these exclusions is service performed

as an employee of a railroad, such service being covered under another

Federal program, the Railroad Retirement Act. The exclusion is made by

what is now section 210(a)(9) of the Social Security Act.

t; employment is defined in section 210(a) as

service performed by an employee for an employer, except that certain

types of service are excluded. Among these exclusions is service performed

as an employee of a railroad, such service being covered under another

Federal program, the Railroad Retirement Act. The exclusion is made by

what is now section 210(a)(9) of the Social Security Act.

However, the Railroad Retirement Act was amended in 1951 to provide that

after October 29, 1951, no retirement or survivor annuity may be awarded

under that Act for a worker who has not completed 10 years of railroad

service. Section 5(k)(1) of the Railroad Retirement Act was amended at the

same time to provide, in effect, as follows: the provisions of what is now

section 210(a)(9) of the Social Security Act shall not exclude railroad

service from "employment" under the latter Act if such service would

otherwise constitute employment under that Act, for purposes of

determining entitlement to benefits on the earnings record of a worker who

has not completed 10 years of railroad service. This amendment does not

apply in cases where a retirement or survivor annuity based on less than

10 years of railroad service was awarded under the Railroad Retirement Act

before October 30, 1951, and such annuity is currently payable.

Under Regulations No. 4 §§ 404.1408 and 404.1410, compensation received

by a person for railroad service which is considered employment under

section 210 of the Social Security Act shall be treated as wages; and

where the Railroad Retirement Board has certified to the Administration in

such a case that the worker has a specified number of compensation

quarters of coverage under the Railroad Retirement Act, he will be

presumed, in the absence of evidence to the contrary, to have an equal

number of quarters of coverage under the Social Security Act.

cial Security Act shall be treated as wages; and

where the Railroad Retirement Board has certified to the Administration in

such a case that the worker has a specified number of compensation

quarters of coverage under the Railroad Retirement Act, he will be

presumed, in the absence of evidence to the contrary, to have an equal

number of quarters of coverage under the Social Security Act.

Since M had less than 10 years of railroad service and had never been

awarded an annuity under the Railroad Retirement Act, it is held that his railroad service performed after 1936 under conditions which meet

the requirements of the definition of employment under the Social Security

Act, must be treated as covered employment, and the $1,387 compensation

for such service must be treated as wages. Also, since there is no

evidence to the contrary, he is presumed to have 17 quarters of coverage

in the years 1942-1946 by reason of he compensation quarters of coverage

certified by the Railroad Retirement Board.

Therefore, M was fully insured in June 1960 and is entitled to old-age

insurance benefits beginning with that month.