is filed pursuant to § 404.607, or to periods during which an application for benefits may be accepted as such pursuant to § 404.606.

(Sec. 216, 74 Stat. 994; 42 U.S.C. 416) [26 F.R. 7055, Aug. 5, 1961, as amended at 29 F.R. 15509, Nov. 19, 1964]

Subpart B-Quarters of Coverage and Insured Status

AUTHORITY: The provisions of this Subpart B issued under secs. 205, 216, 217, 223, 227 and 1102, 53 Stat. 1368, as amended, 68 Stat. 1081, as amended, 70 Stat. 815, as amended, 79 Stat. 379, as amended, 49 Stat. 647, as amended; sec. 5 of Reorganization Plan No. 1 of 1953, 67 Stat. 18, 631; 42 U.S.C. 405, 416, 417, 423, 427, and 1302. Sections 404.102 to 404.106 also issued under sec. 213, 64 Stat. 504, as amended; 42 U.S.C. 418; §§ 404.108 to 404.114 also issued under sec. 214, 64 Stat. 505, as amended; 42 U.S.C. 414. § 404.120 (a) also issued under sec. 5(k), 68 Stat. 1081, as amended; 45 U.S.C. 228e. Additional authority is cited in parentheses following the sections affected.

SOURCE: The provisions of this Subpart B appear at 28 FR. 3378, Apr. 6, 1963; 28 F.R. 3695, Apr. 16, 1963 unless otherwise noted. § 404.101 Insured status; general.

to

The insured status of an individual is a basic factor in determining entitlement on his earnings record to monthly benefits, special age 72 payments, the lumpsum death payment, and the establishment of a period of disability. For example, an individual must be "fully insured" (see §§ 404.108-404.113) qualify for old-age insurance benefits, and either "fully" or "currently" insured (see § 404.114) for mother's insurance benefits or the lump-sum death payment to be payable on his earnings account. An individual is "fully" or "currently" insured when he has acquired sufficient "quarters of coverage" (see § 404.103) to give him such status. If an individual is neither "fully" nor "currently" insured, no monthly insurance benefit or lumpsum death payment is payable on the basis of his earnings record. Subpart D of this part explains which benefits are based on a fully insured status, which are based on a currently insured status, and which are based on both a "fully" and "currently" insured status.

(Sec. 228, 80 Stat. 67; 42 U.S.C. 428) [34 FR. 18933, Nov. 27, 1969]

§ 404.102 Quarter and calendar quarter defined.

The terms "quarter" and "calendar quarter" are used interchangeably to mean a period of 3 calendar months ending March 31, June 30, September 30, or December 31 of any year.

§ 404.103 Quarters of coverage.

(a) General. A calendar quarter may be credited as a quarter of coverage if at least a specified minimum amount of wages are paid (or earned, under certain conditions-see paragraph (e) of this section) in such quarter, or if at least a specified amount of self-employment income is credited to such quarter, or if such quarter occurs in a year in which an individual has a specified amount of wages or self-employment income or a combination of both. However, certain calendar quarters may not be credited as quarters of coverage even though the wage or self-employment income requirements may be met in such quarters. Calendar quarters are credited as quarters of coverage in accordance with the rules in the following paragraphs of this section but subject to the limitations described in § 404.104. (See Subpart K for a definition of "wages" and "selfemployment income." See section 229 of the Act for wages deemed to have been paid a member of the uniformed services.)

(b) Quarters of coverage based on wages paid in, or self-employment income credited to, a calendar quarter. Subject to the limitations in § 404.104, a quarter of coverage is a calendar quarter in which an individual:

(1) Has been paid $50 or more wages (however, see paragraph (c) of this section where wages are paid for agricultural labor performed after 1954; and § 404.106 in case of wages paid in 1937);

or

(2) Has been credited (in accordance with § 404.107) with $100 or more of selfemployment income.

(c) Quarters of coverage based on wages paid for agricultural labor performed after 1954. An individual is credited with quarters of coverage based on wages paid in a year for agricultural labor performed after 1954 in accordance with the following rules. If such wages paid in a year total:

(1) $400 or more, then all quarters of that year which are not otherwise

quarters of coverage, are quarters of coverage;

(2) $300 or more but less than $400, then the last three quarters of that year which can be, but which are not otherwise, quarters of coverage, are quarters of coverage;

(3) $200 or more but less than $300, then the last two quarters of that year which can be, but which are not otherwise, quarters of coverage, are quarters of coverage;

(4) $100 or more but less than $200, then the last quarter of that year which can be, but which is not otherwise, a quarter of coverage, is a quarter of coverage.

If an individual fails to meet (or fails to meet as early in the year as may otherwise be possible) the requirements for a fully or currently insured status, for entitlement to a computation or recomputation of his primary insurance amount, or to establish a period of disability, as the case may be, because of the assignment of quarters of coverage in a year as described in this paragraph, but would meet such requirements (or meet them earlier in the year) by assigning the quarters of coverage to different quarters of such year, the quarters of coverage shall be assigned to such different quarters: Provided, That such reassignment shall be only for the purposes of meeting such requirements.

(d) Quarters of coverage based on wages paid, or self-employment income derived, in a year. An individual is credited with quarters of coverage based on the amount of wages paid or selfemployment income derived, or a combination of both, in a year, as follows:

(1) Based on wages. An individual is credited with a quarter of coverage for each quarter in a calendar year (subject to the limitations in § 404.104) if such quarter occurred in a calendar year:

(i) After 1967, and he has been paid wages equal to $7,800 in such year;

(ii) After 1965 and prior to 1968, and he has been paid wages equal to $6,600 in such year;

(iii) After 1958 and prior to 1966, and he has been paid wages equal to $4,800 in such year;

(iv) After 1954 and prior to 1959, and he has been paid wages equal to $4,200 in such year;

(v) After 1950 and prior to 1955, and he has been paid wages equal to $3,600 in such year;

(vi) Prior to 1951, and he has been paid wages equal to $3,000 in such year and the conditions described in § 404.105 are met. If the conditions of § 404.105 are not met, then only those quarters in such year which occur after a quarter of coverage established in accordance with paragraph (b)(1) of this section, and prior to the quarter in which the individual became entitled to a primary insurance benefit, or died, are credited as quarters of coverage.

(2) Based on self-employment income, or combination of self-employment income and wages. In a case in which an individual has self-employment income, or a combination of self-employment income and wages, during a taxable year, he is credited with a quarter of coverage for each calendar quarter wholly or partly in such taxable year (subject to the limitations in § 404.104) if such taxable year:

(i) Ends after 1967 and the total of his self-employment income derived, and wages paid, in such year equals $7,800;

(ii) Ended after 1965 and prior to 1968 and the total of his self-employment income derived, and wages paid, in such year equals $6,600;

(iii) Ended after 1958 and prior to 1966 and the total of his self-employment income derived, and wages paid, in such year equals $4,800;

(iv) Ended after 1954 and prior to 1959 and the total of his self-employment income derived, and wages paid, in such year equals $4,200;

(v) Began after 1950 and ended prior to 1955 and the total of his self-employment income derived, and wages paid, in such year equals $3,600.

(e) Crediting quarters of coverage on the basis of when wages were earned; limited application-(1) Crediting quarters of coverage based on wages earned. The usual method of crediting quarters of coverage where wages are concerned is based on when the wages are paid (see paragraph (b) (1) of this section). For example, an individual who in January of a year is paid at least $50 in wages for non-agricultural labor would be credited with a quarter of coverage for the calendar quarter January-March of that year even if the wages were earned in

December of the previous year. However, where an individual, alive on January 1, 1955, attained age 65 (or, for months after October 1956, age 62 in the case of a woman) or died prior to July 1, 1957, and did not meet the requirements of §§ 404.108-404.112 (whichever is applicable) because of too few quarters of coverage but would have met such requirement if his quarters of coverage in the first calendar year in which he had any employment (as defined in Subpart K of this part) had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid, upon application for benefits filed after April 21, 1960 by such individual, or, if he is deceased, by his survivors for benefits or a lump-sum death payment payable on his earnings record, the quarters of coverage in such calendar year may be determined on the basis of the period during which such wages were earned, provided that the individual (or, where applicable, his survivors) furnishes proof satisfactory to the Administration of such wages earned by him. Any such wages paid that are reallocated on an earned basis in accordance with the provisions described in this paragraph may not be used in determining quarters of coverage on a paid basis for that or any subsequent calendar year. Further, the reallocation of wages described in this paragraph is solely for the purpose of determining quarters of coverage and shall not affect the allocation of wages for any other purpose.

(2) Payment of benefits. The provisions of subparagraph (1) of this paragraph are applicable only for the payment of monthly benefits for months after June 1957 and, in the case of lumpsum death payments, with respect to deaths occurring after June 1957. The requirements for filing applications for such benefits and lump-sum death payments within certain time limits, as provided in §§ 404.606, 404.607, and 404.355 (b), shall not apply if the application is filed after April 1960 and prior to May 1961.

(f) When a quarter of coverage is acquired. Where a calendar quarter is credited as a quarter of coverage under paragraph (b), (c), (d), or (e) of this section the quarter of coverage is ac

quired as of the first day of such calendar quarter.

(Sec. 228, 80 Stat. 67; 42 U.S.C. 428) [28 F.R. 3378, Apr. 6, 1963; 28 F.R. 3695, Apr. 16, 1963, as amended at 29 F.R. 11651, Aug. 14, 1964; 29 F.R. 15509, Nov. 19, 1964; 34 F.R. 18933, Nov. 27, 1969]

§ 404.104 Calendar quarters that cannot be quarters of coverage.

There shall not be credited as a quarter of coverage:

(a) Any calendar quarter prior to the beginning of such quarter;

(b) Any calendar quarter beginning after the quarter in which the individual died;

(c) Any calendar quarter already credited as a quarter of coverage; or

(d) Any calendar quarter included in a period of disability established for the individual, except that the initial and last quarters of such period may be quarters of coverage. However, if the last quarter of a period of disability occurred prior to 1951, it may be credited as a quarter of coverage only if one of the conditions described in § 404.105 is met. § 404.105 When certain limitations on crediting quarters of coverage for periods prior to 1951 are not applicable.

(a) Monthly benefits and lump sum. The provisions of §§ 404.103 (d) (1) (iv) and 404.104(d) apply without the limitation described therein in the case of monthly benefits and the lump-sum death payment based on the earnings record of an individual:

(1) Who becomes entitled to old-age or disability insurance benefits on the basis of an application filed after August 1960; or

(2) Who is (or would, but for the provisions of § 404.277, be) entitled to a recomputation of his primary insurance amount as described in § 404.262 or § 404.263 on the basis of an application filed after August 1960; or

(3) Who dies without becoming entitled to old-age or disability insurance benefits and (unless he dies currently insured but not fully insured) without leaving anyone entitled to survivors benefits or a lump-sum death payment based on his earnings record on the basis of an application filed prior to September 1960; or

(4) Who dies after August 1960 and whose survivors are (or would, but for the provisions of § 404.277, be) entitled to a recomputation of his primary insurance amount in accordance with § 404.271; or

(5) Who died prior to September 1960, and:

(1) Whose survivors are (or would, but for the provisions of § 404.277, be) entitled to a recomputation of his primary insurance amount as provided in § 404.271, and

(ii) No one was entitled to survivors benefits or the lump-sum death payment payable on his earnings record on the basis of an application filed prior to September 1960 nor was anyone entitled to such benefits for any month prior to September 1960 without the filing of an application; or

(6) Who dies and whose survivors are (or would, but for the provisions of § 404.277, be) entitled on the basis of an application filed after August 1960, to a recomputation of his primary insurance amount in accordance with § 404.270.

(b) Period of disability. The provisions of §§ 404.103 (d) (1) (iv) and 404.104(d) apply without the limitation described therein in the case of an application to establish a period of disability filed after August 1960.

(c) Effective month. Where an individual is not fully insured except for the provisions of this section, no benefits shall be payable on the basis of his earnings record for any month prior to September 1960.

§ 404.106 Quarters of coverage; allocation of wages paid in 1937.

In 1937, employers reported wages paid their employees on a semi-annual basis (i.e., the periods of 6 months beginning January 1, 1937 and July 1, 1937) rather than on a quarterly basis as they have done since. Such wages must be allocated to the calendar quarters of 1937 to determine quarters of coverage in that year. Such allocation is made as follows:

(a) If wages of not less than $100 were paid in any semiannual period in 1937, one-half of the total amount thereof shall be deemed to have been paid in each of the calendar quarters in such period.

(b) If wages of less than $100 were paid in any semiannual period in 1937, the total amount thereof shall be deemed to have been paid in the latter quarter

of such period, except that if in any such semiannual period the individual attained age 65 all of the wages paid in such period shall be deemed to have been paid before the individual attained age 65.

§ 404.107 Quarters of coverage; crediting self-employment income to calendar quarters.

For purposes of determining whether, in accordance with § 404.103 (b) (2), calendar quarter is a quarter of coverage, self-employment income is credited to calendar quarters as follows:

(a) Calendar taxable year. If the individual's taxable year is a calendar year, the self-employment income for such taxable year is credited equally to each quarter of such calendar year.

(b) Fiscal or short taxable year. If the individual's taxable year commences on a date other than January 1, or if it is less than a full calendar year, the self-employment income for such taxable year is credited equally to the calendar quarter in which such taxable year ends and to each of the next three or fewer preceding quarters, any part of which is in such taxable year. For rules applicable in determining quarters of coverage where an individual is credited with "maximum" earnings for a year based on self-employment income alone, or on a combination of self-employment income and wages, see § 404.103(d) (2).

(Sec. 212, 64 Stat. 504, as amended; 42 U.S.C. 412)

§ 404.108 Fully insured status; general.

(a) Factors involved. An individual is fully insured if he is credited with a required number of quarters of coverage. The number of quarters of coverage required depends generally on the following: the date the individual, if a man, attains age 65 or, if a woman, attains age 62 (for months before November 1956, the determining age for a woman was also age 65), or if death occurs before attainment of sucn age, the date of death; whether or not a period of disability has been established for the individual; and the insured status requirement in effect at the time the individual files application for benefits, is first eligible for benefits, or dies.

(b) When fully insured status begins. An individual is fully insured beginning with the first day of the calendar quarter in which he acquires the last required

quarter of coverage (see 88 404.103 (f) and 404.109-404.112). Though fully insured under the statutory provisions in effect during a particular period an individual may not be fully insured under the statutory provisions in effect for a prior period and, in such case, no benefits would be payable for such prior period though benefits may be payable currently based on the later requirements. The following §§ 404.109-404.113, set forth the various fully insured status requirements and their period of applicability.

[28 FR. 3378, Apr. 6, 1963; as amended at 29 FR. 11651, Aug. 14, 1964]

§ 404.109 Fully insured status; beginning August 1961.

(a) Quarters of coverage requirement. An individual is fully insured after July 1961, if credited with not less than:

(1) One quarter of coverage, whenever acquired, for each calendar year elapsing after 1950, or, if later, the year in which the individual attained age 21, and:

(i) In the case of a woman, before the year in which she attains age 62, or, if she is deceased and death occurred prior to attainment of age 62, before the year in which she died;

(ii) In the case of a man, before the year in which he would attain, or did attain age 65 or, if he is deceased, before the year in which he died if death occurred prior to attainment of age 65; or (2) Forty quarters of coverage; or (3) In the case of an individual who died before 1951, 6 quarters of coverage. (See § 404.113a (c) for an exception.)

No

(b) Minimum quarters of coverage required for fully insured status under paragraph (a)(1) of this section. individual shall be fully insured under the provisions of paragraph (a)(1) of this section, if such individual is credited with less than 6 quarters of erage, except as otherwise provided in § 404.113a (a) and (c).

COV

(c) Determining elapsed years for purposes of paragraph (a) (1) of this section. In determining the number of elapsed years for purposes of paragraph (a) (1) of this section, any year, all or any part of which is included in a period of disability established for the individual is not counted as an elapsed year.

(d) Deemed quarters of coverage based on wages prior to 1951-(1) General. For purposes of paragraph (a) of this section and the provision in paragraph

50-040-71- -3

(b) of this section requiring a minimum of six quarters of coverage, an individual shall be deemed to have one quarter of coverage for each $400 of his total wages prior to 1951. (For definition of "total wages prior to 1951," see subparagraph (2) of this paragraph.) This rule is applicable in the case of an individual who applies for old-age insurance benefits after January 2, 1968, or who dies after such date without being entitled to oldage or disability insurance benefits. However, it does not apply where (i) such individual would not be a fully insured individual on the basis of the number of quarters of coverage derived under this rule plus the number of quarters of coverage derived from the wages and self-employment income credited to him for periods after 1950, or (ii) such individual's elapsed years (for purposes of paragraph (a) (1) of this section) are less than seven.

(2) "Total wages prior to 1951" defined. For the purpose of subparagraph (1) of this paragraph "total wages prior to 1951" with respect to an individual means the sum of (i) remuneration credited to such individual prior to 1951 on the records of the Secretary, (ii) wages deemed paid prior to 1951 to such individual under section 217 of the Act (relating to benefits in case of veterans), and (iii) compensation under the Railroad Retirement Act of 1937 prior to 1951 creditable to him pursuant to title II of the Act.

(e) Applicability of the provisions of this section. The provisions of this section apply in determining whether an individual is fully insured for purposes of (1) entitlement to monthly benefits for months after July 1961, based on application filed after February 1961; (2) to a lump-sum death payment where death occurs after July 1961; or (3) to establish a period of disability where application is filed after February 1961.

(f) Table for determining quarters of coverage required for fully insured status. The following table may be used to ascertain the number of quarters of coverage required for a fully insured status for benefits for months after July 1961 and for the lump-sum death payment where death occurs after July 1961. Instructions for use of the table are set forth in subparagraphs (1), (2), and (3) of this paragraph. The numbers of quarters of coverage which appear in column II may be reduced by the application of the provision of subparagraph