# SSR 69-47: SSR 69-47: SECTION 229(a). -- DEDUCTIONS -- MILITARY SERVICE WAGE CREDITS -- STATUS OF DEEMED WAGES FOR DEDUCTION PURPOSES

> Federal · Rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_69_47

## Section

- **Citation:** SSR 69-47
- **Heading:** SSR 69-47: SECTION 229(a). -- DEDUCTIONS -- MILITARY SERVICE WAGE CREDITS -- STATUS OF DEEMED WAGES FOR DEDUCTION PURPOSES
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / OASI / Benefits in Case of Veterans / SSR 69-47

## Text

SSR 69-47

C, a child insurance beneficiary, entered on active duty with the United
State Marine Corps in December 1967. Notice was received by the Social
Security Administration that C's total earnings for 1968 would be
approximately $2,300, and his benefits were suspended pursuant to the
deduction provisions in section 203 of the Social Security Act. That
section provides in effect that deductions shall be made from the benefits
to which an individual is entitled if his annual earnings exceed $1,680 a
year. For purposes of this section, earnings consist of all wages received
for services rendered in the year, plus any net earnings and minus any net
loss from self-employment for the same year. C's base pay for 1968 from
the Marine Corps was less than $1,680; however, he was granted credit for
certain "deemed wages" in addition to the amount of his base pay, as
provided by section 229(a) of the Social Security Act, which brought his
total earnings for 1968 above the statutory limit. C protested the
suspension of his benefits, on the ground that only his base pay for 1968
should count as earnings for purposes of making deductions under section
203 of the Act.

Section 229(a) of the Social Security Act provides, as pertinent here,
that servicemen on active duty in the uniformed services of the United
States (including active duty for training) will receive social security
credit not only for their base pay in each quarter, but also for certain
"deemed wages" beginning with the March 1968 calendar quarter. The amount
of "deemed wages" which may be credited for a quarter is $100 if the basic
pay in the quarter is $100 or less; $200 if over $100 but not more than
$200; and $300 if more than $200, subject to the maximum wage limitations
contained in the law. These "deemed wages" may be used in determining
entitlement to, and the amount of, monthly benefits payable for months
after December 1967.
mount
of "deemed wages" which may be credited for a quarter is $100 if the basic
pay in the quarter is $100 or less; $200 if over $100 but not more than
$200; and $300 if more than $200, subject to the maximum wage limitations
contained in the law. These "deemed wages" may be used in determining
entitlement to, and the amount of, monthly benefits payable for months
after December 1967.

In considering wages for deduction purposes under section 203 of the Act,
the definition of wages contained in section 209 is generally controlling.
Whether or not C's benefits are subject to deductions for 1968 depends on
whether the "deemed wages" granted him under the above section constitute
"wages" under section 209 of the Act. The language of the statute,
supplemented by its congressional history, makes clear that the above
amounts are to be "deemed wages" for a specific, limited purpose only,
i.e., to provide additional social security protection for those serving
in the uniformed services. H.R. Report No. 544, 90th Cong., 1st Session,
page 34 and Senate Report No. 744, 90th Cong., 1st Session, page 60,
indicate that this provision was prompted by the fact that wages in kind
and certain cash increments referable to military service are not credited
as "wages" under the Act though they are an important part of total
military compensation (particularly in the case of the lowest ranking
enlisted personnel). Therefore, a serviceman's social security protection
could be impaired during his period of military service because only his
basic military pay may be used to determine his (and his family's) benefit
rights.
ice are not credited
as "wages" under the Act though they are an important part of total
military compensation (particularly in the case of the lowest ranking
enlisted personnel). Therefore, a serviceman's social security protection
could be impaired during his period of military service because only his
basic military pay may be used to determine his (and his family's) benefit
rights.

In enacting section 229 of the Social Security Act as a separate section
and not amending that part of section 209 of the Act which limits "wages"
of a member of a uniformed service to his basic pay only, and stating only
that these "deemed wages" are "for purposes of determining entitlement to
and the amount of" benefits and entitlement to a period of disability,
Congress made clear its limited purpose. On the other hand, section 209 of
the Social Security Act, which defines "wages" for a member of the
uniformed services generally, clearly makes that definition applicable for
all purposes of title II, i.e., for both entitlement and deductions. Thus,
it states in section 209

It seems clear, therefore, that section 229(a) does not expand the
definition of "wages" for members of the uniformed services contained in
section 209 of the Act, which definition is cognizable for all purposes of title II. Nor does section 229(a) in any way expend the scope
of section 203(f)(5)(C), which defines and individual's wages for work
deduction purposes. The latter section, when construed in conjunction with
the definition of "wages" for members of the uniformed services contained
in section 209, makes plain that the only "wages" of a serviceman
cognizable for deduction purposes are his "basic pay."
r does section 229(a) in any way expend the scope
of section 203(f)(5)(C), which defines and individual's wages for work
deduction purposes. The latter section, when construed in conjunction with
the definition of "wages" for members of the uniformed services contained
in section 209, makes plain that the only "wages" of a serviceman
cognizable for deduction purposes are his "basic pay."

In addition, it would be an anomaly for the "deemed wages" which Congress
provided in section 229(a) to increase benefit protection for
servicemen and their families at no expense to them, to be used also to reduce their benefits. While it has generally been true that
earnings amounts used for purposes of entitlement to and computation of
benefits have also been used for deduction purposes, different amounts of
earnings can be used for entitlement than for deduction purposes. Thus,
earnings in excess of the maximum that may be credited to any earnings
account under the Act for a particular period may nevertheless be used for
deduction purposes. Further, military service wage credits allowed under
section 217 of the Act (which, like those involved here, are "deemed
wages" and gratuitously provided) are used for entitlement, but not for
deduction purposes.

Accordingly, it is held that "deemed wages" provided in the case
of members of the uniformed services by section 229(a) of the Social
Security Act may not be used for purposes of deductions under section 203
of the Act.

## Nearby sections

- [SSR 60-16 SSR 60-16. MILITARY SERVICE WAGE CREDITS -- SERVICE IN THE WOMEN'S ARMY AUXILIARY CORPS (WAAC)](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_60_16.md)
- [SSR 61-49 SSR 61-49. MILITARY SERVICE WAGE CREDITS -- EFFECT OF BENEFIT AWARDED BY ANOTHER FEDERAL AGENCY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_49.md)
- [SSR 62-13 SSR 62-13. VETERANS -- MILITARY SERVICE WAGE CREDITS -- EFFECT OF CORRECTION OF ARMY RECORDS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_13.md)
- [SSR 63-29 SSR 63-29: SECTIONS 202, 215, AND 217. -- COMPUTATION OF BENEFITS -- USE OF MILITARY SERVICE WAGE CREDITS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_63_29.md)
- [SSR 64-12 SSR 64-12: SECTION 217(h). -- MILITARY SERVICE WAGE CREDITS -- MILITARY SERVICE FOR POLISH GOVERNMENT-IN-EXILE DURING WORLD WAR II](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_12.md)
- [SSR 64-15 SSR 64-15: P.L. 87-574 (76 Stat. 308). -- STATUS OF SERVICES PERFORMED BY PATIENTS AND MEMBERS IN VA HOSPITALS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_15.md)
- [SSR 64-64 SSR 64-64: SECTIONS 217(a). -- VETERANS -- MILITARY SERVICE WAGE CREDITS -- EFFECT OF BENEFIT AWARDED BY ANOTHER FEDERAL AGENCY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_64.md)
- [SSR 68-11 SSR 68-11: SECTIONS 217(a), 217(d), and 217(e). -- VETERANS -- MILITARY SERVICE WAGE CREDITS -- PRESIDENTIAL PARDON AFTER DISHONORABLE DISCHARGE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_68_11.md)
- [SSR 69-47 SSR 69-47: SECTION 229(a). -- DEDUCTIONS -- MILITARY SERVICE WAGE CREDITS -- STATUS OF DEEMED WAGES FOR DEDUCTION PURPOSES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_69_47.md)
- [SSR 70-13 SSR 70-13: SECTIONS 217(a)(1)(B) and 217(e)(1)(B). -- VETERANS -- GRATUITOUS MILITARY SERVICE WAGE CREDITS -- USE PRECLUDED IF PREVIOUSLY CREDITED FOR NONREGULAR MILITARY SERVICE RETIRED PAY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_13.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_69_47. Check the current official text before relying on it. Not legal advice.