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5.4.1 MS Introduction

The RRA provides Tier 2 service months and compensation credit toward retirement 

benefits for employees who leave railroad work and perform active duty MS in the same 

year or in the next calendar year. A credited month of MS is considered to be the same 

as though the employee performed regular railroad work that month. Eligibility for MS 

credit depends on:

• Whether the employee's MS entry was voluntary or mandatory, and

• Whether the active duty MS was during a national emergency period or not.

If MS cannot be credited as railroad service, MS that is creditable under the SSA may 

be used as SSA wage credits. When MS is creditable at both agencies, RRB 

determines the use that is to the employee's greater benefit. Information is exchanged 

between the agencies to assure that the same MS credit is not used to compute two 

benefits. 

This chapter explains what MS may be credited under the RRA, how the requirements 

differ under the SSA, and how MS information is processed.

5.4.5 MS Definition

This section explains the concepts and terminology used in discussing employees' 

military service (MS).

5.4.5.10 Armed Forces

The RRA provides MS credit for members of the uniformed land or naval military forces 

of the U.S. The components of the U.S. Armed Forces are:

Active Service 

Branch

Active Women's 

Auxiliary

Reserve Branches That May Be 

Called To Active Duty Service

U.S. Army WACS, WAACS Army National Guard of the United 

States* & US Army Reserve

U.S. Air Force WAFS Air National Guard of the United 

States* & Air Force Reserve 

U.S. Navy N/A U.S. Naval Reserve &

WAVES (Women's Reserve)

U.S. Marine Corps N/A Marine Corps Reserve &

Marine Corps Women's Reserve

U.S. Coast Guard N/A U.S. Coast Guard Reserve &

SPARS (Women's Reserve)
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*National Guardsmen only while "federalized", not while under state authority.

Note: Auxiliary branches are former armed forces components whose members were 

women. All auxiliary service was entered by enlistment (voluntary service).

5.4.5.20 Duty Status

A. Active Duty is the status of an individual while enrolled or commissioned in fulltime active uniformed service, for purposes of national emergency preparedness 

or national defense, until resignation, discharge, or transfer to inactive duty

status. 

This duty status includes Reservists' annual training duty and attendance at 

service schools while otherwise in active service.

By definition, in Section 1 of the RRA, references in the Act and regulations to 

"military service" means "active duty service" in the U.S. land or naval forces.

B. Active Duty for Training appears on military records to designate that active 

service is authorized under the emergency preparedness provisions of military 

law rather than for national defense. For current RRB and SSA purposes, "active 

duty for training" status is the same as "active duty". (See SSA's list in 

5.4.50.10.B.)

C. Reserve duty is the status of an individual enlisted in or transferred to the 

reserve component of any branch of the U.S. Armed Forces. Reserve duty time 

(inactive duty) is not creditable as railroad service. MS of reservists is creditable 

only when they are called to federal active duty as explained in A & B above.

D. Full-time National Guard duty is the training or other employment status of 

members of the Air or Army National Guard while that service is under the 

authority of a state, a territory, the Commonwealth of Puerto Rico or the District 

of Columbia. This work activity, recorded on National Guard Bureau forms, is 

NOT federal active duty service. (See "National Guard" below.)

5.4.5.30 Reserve Forces

A. National Guard is the generic term for Army or Air guard units that are state 

militia organizations not on federal duty status. Members serve under the 

authority of their home states until called to federal service by the National Guard 

Bureau.

B. Army National Guard of the United States, and Air National Guard of the 

United States are reserve components of the U.S. Army and the U.S. Air Force. 

Member reservists are also members of their state National Guard. These 
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reservists may be called to active duty in the U.S. Army or U.S. Air Force in 

periods of national emergency.

C. National Guard Bureau (NGB) is a joint bureau of the Dept. of the Army and 

Dept. of the Air Force under the Dept. of Defense. The NGB exists as the 

communications channel among the various state level Guard units and the 

Army, the Air Force, the Army National Guard of the United States and the Air 

National Guard of the United States.

D. Army Reserve, Air Force Reserve, Naval Reserve, Marine Corps Reserve 

and Coast Guard Reserve are reserve components of those Armed Forces 

branches whose members are NOT members of the National Guard of the 

United States. Members' activities are administered directly by the Army, Air 

Force, Navy, Coast Guard, and Marine Corps, not by the NGB.

5.4.5.40 Term of Service (TOS)

A. One enlistment, enrollment, or induction to M/S for an agreed length of time is 

referred to by the military as a term of service and is shown on service records as 

TOS. A single TOS begins on the date of entry to active duty and ends on the 

date the individual is discharged from that duty, retires, resigns, or is transferred 

to reserve (inactive) status.

• For WWII the induction TOS was 2 years or the duration of the war.

• After 1945 the induction TOS was 2 years.

• A TOS for voluntary enrollments has varied among the service branches, 

and by individual choice of commitment, from 2 to 8 years.

B. For commissioned officers, appointments are generally career obligations and 

the TOS is indefinite. MS creditability is determined according to the earliest 

point in time that the officer would have been permitted to resign his commission 

and return to civilian employment.

Officers that continue to serve after a national emergency has ended are 

presumed to continue (i.e. delay return to railroad service) by choice - - unless 

the individual's proof shows resignation of commission was not permitted until a 

later date.

C. Temporary commissions for officers' active duty that have designated end dates 

may be credited in the same way as the ordinary TOS described in item A above.

5.4.5.50 Break in Military Service

Two or more active duty terms must be separated by at least one calendar month of 

civilian or reserve status for a break in MS to be considered.
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A. If the employee re-entered active duty in the same month, or the month after, he 

was discharged, during the same national emergency or war service period, the 

additional active duty is a new TOS, but do not count the days between the terms 

as a break in service.

Example: The working employee was drafted April 1969, and discharge occurred 

April 5,1971. The employee re-enlisted May 21, 1971 for a TOS that ended May 

1973.

Railroad credit is given for all months April 1969 through May 1973. Since there 

was no calendar month in 1971 during which he could have earned an additional 

service month, there is no break in service.

B. Following a creditable TOS, a break in service occurs if the employee works in 

non-railroad employment instead of returning to his railroad work.

C. If the employee alleges continuous military service but his re-enlistment dates or 

other employment evidence presents conflict, refer the case to P&S-RAS.

5.4.10 Means of Entry to Active Duty:

5.4.10.10 Involuntary or Mandatory Service:

MS is involuntary or mandatory, when an employee is required by law, such as 

Selective Service System conscription, or troop call up from a reserve unit, to leave 

railroad service to perform active duty MS.

A. Induction: Enrollment resulting from conscription (draft) under the Selective 

Service Act. Through 1946, the TOS could be designated as "two years or the 

duration" of the war. Thereafter the TOS for inductees required two years of 

active duty. Induction was abolished effective July 1973.

B. Call from reserve status: Transfer from enlistment in a reserve service 

component to an active duty status in that service (No prior TOS.)

C. Recall from reserve status: Transfer to active duty status from reserve status 

when the individual has previously performed active duty.

5.4.10.20 Voluntary MS Enrollment

Additional requirements must be considered for MS credit when an employee chooses 

to leave railroad employment and enroll in active duty military service, but is not 

required to do so.

A. Commission: The appointment of an officer to an active duty assignment. 

Officers' commissions are generally career appointments that carry no specified 

TOS end date.
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B. Enlistment: A voluntary enrollment for duty in a designated branch of service for 

a specific number of years or months.

C. Reserve Enlistment: Enrollment in a reserve component of the Armed Forces, 

most often the Army National Guard, by an individual who has not previously 

performed MS.

The employee's initial (basic) guardsman training active duty is voluntary, and, if 

entered when there is no declared national emergency, is not creditable as 

railroad service. Any subsequent recall from reserve status to active duty status 

is, by law, considered involuntary service. 

5.4.10.30 Induction with Enlistment Involved

If the employee enlisted in one branch of service to avoid being drafted into another 

branch, the MS is considered mandatory service.

The employee must show proof that induction would have occurred if he had not 

enlisted. Acceptable proof is a copy of his induction notice or other correspondence 

from the Selective Service Commission establishing that he was scheduled for 

induction.

Example: Employee received induction notice to report to Army duty in 30 days and, 

instead, enlisted for immediate active service in the Marine Corps. With proof of the 

imminent induction, the initial Marine TOS is credited as mandatory entry. Without proof 

of the call to Army duty, the Marine service is voluntary.

5.4.15 Means of Separation from MS

The employee's military record shows the manner in which a TOS ended and may 

provide details that will determine if multiple TOS may be combined and considered as 

one enrollment.

A. Resignation is voluntary separation from active or reserve service usually 

associated with retirement.

B. Discharge is official release from a specified military obligation. Proof of an 

individual's discharge from active duty may show a subsequent reserve force 

obligation. The reserve duty is not creditable.

C. Transfer to Reserve Status is release from active duty to enrollment in a 

reserve component. Evidence may show "discharged to reserve."

D. Transfer to another service branch is reassignment from one active military 

force to another - usually without a break in service other than transit time.

E. Conditional discharge is the designation for a person who ends an enlisted 

status and accepts a commission. There is no break in active MS, so this 
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considered as one TOS. A status change of this type may follow active duty for 

training, or occur as a "field commission" such as temporary or permanent 

promotion from sergeant to lieutenant during combat.

5.4.20 Types of MS Creditable Periods

The 1937 RRA and subsequent amendments establish three types of conditions under 

which an employee who leaves his railroad job for MS may receive retirement credit for 

the months of active duty MS.

5.4.20.10 War Period

A war period begins from the earliest of the date that:

• Congress declared war or declared the U.S. to be in a state of war, or

• Another nation invaded, or declared war on, any part of the U.S. or

• The U.S. engaged in armed hostilities to preserve the Union or to maintain a republic 

form of government in any State of the Union.

A war period ends on the date that Congress declares hostilities to be ended.

The years of World War I and World War II are war periods. Refer to the table in 

5.4.30.10 for dates of active duty terms of service.

5.4.20.20 War Service Period

Any period, after 09-07-39, of national emergency declared by the President or 

Congress may be considered a war service period when:

• An individual in active duty was required to remain in active duty, or 

• An individual was called to enter active duty and remain in active status.

A war service period may precede, include, and/or follow a period of declared war, but 

may also exist during a time of national emergency when there has been no official 

declaration of war. For example, the Korean Conflict and Vietnam Era military actions 

are a war service period. Refer to the table in 5.4.30.10 for more information regarding 

periods of active duty service and dates. 

A war service period terminates on the date Congress declares the national emergency 

to be ended regardless of the date hostilities between the U.S. and an adversary are 

declared ended.
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A war service period, by definition in the Act, relates to the service of individuals rather 

than inclusive calendar dates. For reservists, active duty commitments through the end 

date of each TOS define each individual's war service period.

Example: A reserve unit that is called to active duty for a TOS "not to exceed 1 year" 

may have some members that serve the full year and some individuals that are returned 

to reserve status, in less than 12 months, with a shorter TOS.

5.4.20.30 State of National Emergency

Any period of time, declared either by Congress or the President, during which any part 

of the U.S. Armed Forces may be called to active duty for the national defense is a state 

of national emergency and is a war service period for the participating servicemen. 

Operations Desert Storm, Desert Shield, and the Gulf Wars are part of a currently 

declared national state of emergency.

5.4.25 RRA Requirements for MS Credit

The RRA protects career railroad employees from losing retirement credits while 

performing MS during a war or national emergency.

5.4.25.10 MS That Can be Used for RR Credit

A. MS may be credited only if before the active duty began, the employee 

performed creditable RR service in the same calendar year or the calendar year 

prior to the date the MS began.

B. When multiple TOS are treated as separate MS enrollments, each enrollment 

must be preceded by the required RR service.

C. If the MS enrollment date is earlier than active duty entry date, the enlistment or 

induction date is used to meet the preceding RR service requirement, but the 

month of entry to active duty is the first MS month that can be credited as RR 

service. 

5.4.25.20 MS That Cannot be Used

A. No qualifying railroad work: Beginning with the earliest MS entry, each TOS 

must be compared with the employee's service and compensation record to be 

sure the rule in 5.4.25.10.A is met.

• MS that was performed before the individual began railroad employment is 

not creditable.

• MS that began at a date later than described by the rule in 5.4.25.10.A is 

not creditable.
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B. Time lost - Armed Forces records show days lost without pay while an individual 

in active duty status was not in acceptable performance of that duty. If the 

reason for the time lost was desertion, absent without leave (AWOL), or other 

serious offense, a court martial may terminate the M/S with a less than honorable 

discharge. That action may follow stockade or brig confinement; that is also time 

lost without pay.

1. After 1956, time lost always reduces the amount of reported MS wages and, if 

a full calendar month is lost, that unpaid month cannot be counted as a 

railroad service month.

2. If time lost results in felony conviction or dishonorable discharge, or an 

individual was officially declared a deserter and died while in that status, none 

of the remaining months that follow the time lost offense are creditable.

3. Active duty lost days may be recovered by an extension of the person's TOS 

with the effect that a 2-year term may extend to 25 or more calendar months 

before the individual is discharged. The added paid month(s) are creditable.

4. Lost months must be indicated in remarks on APPLE MS proof screens, so 

HQ can assure unpaid months are not counted in the MS months entered on 

EDM. Do not allow final award to process until EDM and G-90 MS screens 

show the corrected MS months.

5. Only full calendar months of time lost require an adjustment of the MS 

crediting. An indication that the discharge was "other than honorable" will 

cause RASI to generate a referral to require examiner verification that the MS 

credit is correct. If all months include some paid time, and no dishonorable 

discharge is involved, application processing may continue.

Refer evidence in questionable cases to RAS for resolution.

C. Dishonorable Discharge

1. MS Considered as Wages - SSA's rule applies: if a TOS was performed 

wholly before 1957, and the discharge from MS was dishonorable, no part of 

the TOS can be credited as wages.

The type of discharge has no effect on MS performed after 1956 when MS is 

credited as wages.

2. MS Used as Compensation -MS may be creditable as compensation for 

periods other than "time lost" or time spent in disciplinary barracks awaiting 

trial that results in dishonorable discharge.

D. Discharge Was Undesirable - If the discharge certificate or other evidence 

indicates undesirable discharge due to "unfitness", the paid active duty 

performed before discharge is creditable.
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5.4.30 Granting MS Credits

When proven MS is reported on an annuity application, any additional railroad service 

months and compensation must be credited and recorded in EDM before final award 

calculations. The crediting process is described in CCOM 10.

5.4.30.10 Current Claims

As shown on the following chart, (Form G-429) credit for M/S is granted according to 

how and when an eligible employee entered active military service. These rules apply 

only after it is determined that the preceding railroad service requirement was met as 

explained in 5.4.35. 

Means of Entry to Active Duty TOS

Active Duty 

Beginning Date of 

Term of Service

Involuntary Entry

Drafted or Ordered

to Active Duty

Voluntary Entry

Enlisted, Re-enlisted,

or Commissioned

09/08/1939

Thru 12/31/1946

WWII war period

Credit as Compensation.

Include re-enlistment periods thru end of TOS that began before

Jan 1947

01/01/1947

Thru 06/14/1948

Post WWII

War Service Period

Credit as Compensation 

thru end of TOS 

Note: there were NO 

inductions in this period

Credit as compensation only thru 

06/14/1948

(Enlisted after war ended)

Special Rules Effective 12/01/88 Rate Calculations

06/15/1948

Thru 12/15/1950

Not a War Service 

Period until special 

rules of 1988 RRA 

amendments

Credit as Compensation

Credit as compensation if employee 

returned to RR in same or next 

calendar year after MS with no 

intervening non-RR work. All other 

voluntary entry MS IS NOT 

CREDITABLE

12/16/50

Thru 09/14/78

Korean Conflict, 

Vietnam Era and

Post-Vietnam War 

Service Period

Credit as Compensation

Note: Induction ended June 

30, 1973. Afterward - 

Involuntary applies only to 

reservists called to active 

duty.

Credit as Compensation only thru 

09/14/1978 no declared war period 

involved. Credit ended when 

national emergency ended. 10/78 

thru end of TOS is wages.
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09/15/78

Thru 08/01/90

Not a War Service 

Period

Reservists called to active 

duty credit as compensation

Not Creditable as Compensation

Used by SSA as regular wages. 

Earnings may be included in gross 

Tier 1 and in SSA benefit.

08/02/90

Thru Present

Gulf Wars Conflicts

National Emergency

Credit all active duty as compensation until further notice

5.4.30.20 Rules for Each MS Period

Each mandatory entry active duty TOS that was preceded by railroad work in the same 

year or the calendar year before the TOS may be credited as railroad service and 

compensation.

While any TOS resulting from mandatory entry to MS is creditable, separate legislative 

actions and executive orders during each period of national emergency established 

discrete rules, according to entry date, for employees who voluntarily left railroad jobs to 

enter MS.

A voluntary TOS that began before any creditable period, even though the service 

continued into a new period of war or national emergency service, is not creditable. Any 

additional TOS thereafter must meet the preceding railroad service requirement.

A. Entry 09-08-39 through 12-31-46

Any MS that began during this period is creditable. Enlisted employees in active 

M/S on 12-31-46 may receive credit for additional months, after December 1946, 

that are in the same TOS. For a re-enlistment that began after 12-31-46, see B 

below.

For commissioned officers, the TOS in effect 12-31-46 is deemed to continue 

until the earlier of their resignation or 06-14-48. For officers who had not 

resigned their commissions by 06-15-48, with discharge or transfer to reserve 

forces, additional MS months may be credited only with proof that the individual's 

release from active duty was postponed. 

Note: Early in 1947 most active military personnel were returned to the U.S. and 

discharged before their scheduled TOS ended. Evidence may show transfer to 

"inactive" reserve status before final discharge.

B. Entry 01-01-47 through 06-14-48

1. Prior to 12-01-1988
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Prior to the 1988 RRA amendments, all employees who enlisted or reenlisted after WWII ended could receive MS credit only through June 1948 

when the national emergency was declared ended. 

2. Effective 12-1-1988

The above rule continues to apply for employees who

• Worked outside the railroad industry after leaving MS and before they 

returned to railroad jobs, or

• Who did not return to any railroad employment after MS

Effective 12-01-88 MS is creditable for employees who began a new TOS 

during this period, but did return to railroad service when the TOS ended. 

See C below.

C. Entry 06-15-48 through 12-15-50

Prior to 12-01-1988, voluntary entry MS that began or continued after 06-14-48 

was not creditable.

For annuities accrued 12-1-88 later, compensation credit is given if: 

• The employee returned to railroad service in the same year or the year 

after his MS ended; and

• The employee had no non-railroad employment after the MS and before 

the railroad service resumed.

Annuities in force prior to December 1988, for employees who meet the above 

requirements are increased effective 12-01-1988. 

D. Entry 12-16-50 through 09-14-78

Any MS that began in this period may be credited through September 1978. 

The military draft (conscription) ended June 30, 1973. Hostilities were declared 

ended 09-07-1975. By that time all drafted military personnel had completed 

their mandatory TOS. However, Congress did not declare the national 

emergency to be ended until 09-14-1978. 

The effect of that time lapse is that MS credit as compensation may continue only 

through 09-14-78 unless the individual was an activated reservist or an officer 

who could not be released from active duty by 09-78.

E. Entry 09-15-78 through 08-01-90
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Voluntary MS that began during this "peacetime" period is not creditable as 

railroad service months. MS by individual reservists called to active duty for 

training or combat for national defense is creditable. If the training takes place 

during a month already credited with railroad service, the military earnings are 

credited up to the Tier 2 maximum amount for that month.

F. Entry 08-02-90 till present

Any active duty that began in this period may be credited as railroad service if the 

preceding railroad service requirement is met.

5.4.30.30 Historic War and War Service Periods

The following military mobilization periods occurred before the enactment of the RRA

and are referred to as "prior military service". Additional months of railroad service were 

credited only up to the career total maximum of 360 service months. No service or 

compensation credit was given for these periods if the employee had actual railroad 

service plus post-1936 MS totaling 30 years or more service.

If the employee entered MS during a war period, and he was required to continue in MS 

after the end of that period, credit was given for all months of MS performed before his 

discharge or re-enlistment.

If the employee entered MS during a war service period, credit was given to MS months 

through the date the period ended.

A. April 21, 1898 through August 13, 1898 (Spanish American War - War period)

B. February 4, 1899 through April 27, 1902 (Philippine Insurrection - War period)

C. May 9, 1916 through February 5, 1917 (Mexican Border Disturbances) The first 

war service period: Only duty by National Guard units called to federal service 

was creditable during this period.

D. April 6, 1917 through November 11, 1918 (World War I - War period)

5.4.35 Multiple Terms of Service

An employee may maintain career railroad service and have more than one creditable 

military experience. Each proven TOS must be compared with the employee's railroad 

service record to verify that each break in MS was followed by a return to railroad work 

that qualified him to receive credit for the next MS term.

Note: There is no limit to the number of individual TOS that can be transcribed from MS 

documents to APPLE proof screens.
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5.4.35.10 TOS to be Combined

When an individual performs more than one TOS, the MS may be combined and 

considered as one enrollment only if the following requirements are met.

A. The active duty must be continuous days. A new active TOS date must 

immediately follow a discharge or transfer date. Proof must show that there was 

no substantial break in active duty during which the employee could have opted 

to acquire more regular railroad service; and

B. Any terms being combined must be within the same war service period.

C In case of discharge from one branch of service in order to enlist in another 

branch, transit status separating two terms, allowing for travel from one duty 

station to another, does not count as a break in MS. Transit time, if any, is 

indicated on Form DD-214.

D. Paid leave that occurs between TOS is considered part of the previous term and 

does not constitute a break in military service.

E. Indications on proof documents of unpaid duty status, such as AWOL or 

disciplinary action, are considered to be a break in MS only if discharge also 

occurs. "Without pay" status for a full month or more, however, will reduce the 

number of MS months that are credited as RR service. 

Example 1: If a sailor caused a disturbance in the recreation room, and his 

punishment was three days without pay, the days lost would show on his proof 

but he would still be in active duty all months of that TOS.

Example 2: For a sailor's 3rd offense of fighting in the recreation room, if his 

penalty was 45 days in the brig without pay, within that TOS, there would be 1 

month for which he would not receive railroad service credit.

Note: 30 Days or less is not considered a substantial break in MS. See 5.4.5.50. 

5.4.35.20 Multiple TOS that Cannot be Combined

In order to assure proper credit for multiple TOS, the terms cannot be combined if they 

occur in dissimilar periods of creditability. Each TOS must be recorded and processed 

separately for credit as compensation or wages when:

A. A break in active duty, other than described in 5.4.35.10, occurred; or

B. A TOS in effect on 06-14-48 is followed by another term that began before 

12-16-50; or

C. A TOS in effect on 09-14-78 continues past 09-78; or
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D. Evidence shows that following a discharge or transfer to inactive status, a 

substantial time elapsed before the next TOS; or

E. A designated war service period ended during one TOS and the following TOS 

(voluntary entry) started either during a non-creditable period or during a 

subsequent war service period.

5.4.40 MS Forms

Several standard government forms are prepared and issued to record and transmit MS 

information. Identification of these forms is useful in processing proof of MS and 

exchanging information needed to assure accurate use of MS credits.

A. DD-214 is the preferred proof of MS. It is the Department of Defense form 

issued to an individual at the end of each military service obligation. It records 

details of active duty needed to determine the creditability of the MS under the 

RRA.

B. NGB series is any one of the forms issued by the National Guard Bureau, 

generally used by the various state guard units to record non-creditable National 

Guard reserve service. Although NGB forms are not "best proofs", they may 

provide the dates of transfer to federal active duty status.

C. RR-17 is a notice to SSA that RRB is using specific post-1956 MS months as 

railroad service and SSA must, therefore, remove the wages reported for that MS 

from any SSA benefit eligibility or rate calculation consideration.

D. SSA-655-U2 is a request from SSA to RRB for pre-1957 MS credit information. 

The form must be completed and returned to SSA before they can use WW II or 

post-WW II MS for benefit eligibility or rate increase.

E. SF-180 is a request, signed by a veteran, to the National Archives Administration 

for replacement military records. The reply to SF-180, from the National 

Personnel Records Center in St. Louis, is an up-to-date Form DD-214. Form 

SF-180 is available at local SSA and RRB offices and at www.archives.gov on 

the Internet.

F. G-177B is a form provided to persons who inquire about M/S under the RRA. It 

lists creditable periods and summarizes eligibility requirements.

G. G-429 is a desk chart guide for examiners and contact reps that displays the 

creditability of MS performed in the most recent creditable periods. The form 

may be printed from RRAILS and provided in response to individual technical 

inquiries about MS rules.

H. G-563 is used by headquarters examiners to notify CCU to manually credit MS to 

EDM and calculate tier 2 amounts in special circumstance claims that cannot be 

handled mechanically.
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5.4.45 Proving MS is Creditable

MS credit may affect the amount of retirement and survivor benefits, so MS months 

must be proven before they are considered for RRB use. The best proof is Form 

DD-214 that is issued to each veteran on the date of discharge from active duty. F/O 

staff can provide Form SF-180 for the employee to request a new DD-214 if other 

acceptable evidence is not available.

5.4.45.10 Collecting Evidence

Submitting proof of MS is the employee's responsibility. Various RRB public 

announcements and pamphlets advise that proof should be provided to F/Os for 

processing.

A. Advance determination of MS credit is encouraged. MS proofs may be submitted 

to an RRB office at any time far in advance of annuity eligibility to have:

• The acceptability of evidence certified and transcribed to APPLE;

• Service months and compensation, or wage credit notations, added to 

EDM records for extraction when a retirement estimate is requested or a 

claim is filed; and 

• A report of added railroad service returned to the employee or his 

representative. 

B. Proof of MS may also be submitted with an application for RRB benefits, or at 

any time after an application is filed. If acceptable documentation is received 

after an award appeals period has expired, see rules in RCM 5.4.90.

5.4.45.20 Proof Storage

A. Paperless - APPLE System Beginning January 2001, vital information on MS 

proof documents is transcribed to APPLE evidence screens where it is 

permanently stored. The active duty information is extracted electronically from 

APPLE, processed for credit as RRB or SSA earnings, and recorded on the EDM 

MS screens for use in eligibility determinations and annuity calculations.

B. Paperless - Imaging - MS evidence that must be inspected by headquarters 

personnel for acceptability as proof of creditable MS is imaged for storage and

C. Paper Documentation - Prior to mechanical evidence collection, F/Os used Form 

G-91 to transcribe MS information; they mailed the completed forms to 

headquarters for processing and retention in physical claim folders.
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RCM 5.4 Military Service Revised August 16, 2022 Page 16 of 34

5.4.45.30 MS Proof Feedback

Proven MS months that are credited on EDM records, as railroad service, are displayed 

on the lifetime service record (Form BA-6) that is released annually to current railroad 

employees.

Estimated annuities calculated "with and without" MS provide a guide for F/Os to 

determine and explain how MS may best be used when an application is filed.

Upon request, the servicing field office provides the number of additional service 

months credited to EDM to the individual who submits the MS evidence. (See FOM 

910.5.2) 

5.4.50 MS Rules at SSA

Both the RRA and the SS Act allow credit for most employee active duty MS. Beginning 

1975 it is an RRB responsibility to determine how the MS is used to the claimant's 

greatest benefit. This section describes how SSA rules for MS credits differ from the 

rules of the RRB. 

5.4.50.10 SSA Definitions 

Except as stated below, RRB and SSA use the same definitions for MS terminology. 

A. Active Duty

1. SSA has no separate rules for voluntary and mandatory entry.

2. "In transit" status in RRB rules, is specified at SSA to include the time of an 

individual who:

o Had been selected for active MS under the Universal Military 

Training and Service Act of 1948; and

o Was in transit to or from a place of entry or final acceptance to 

which he had been ordered or directed to proceed.

B. Active Duty for Training

Prior to 1957 SSA did not allow credit for MS training duty. Thereafter, a person 

is considered to have performed active duty for training when he was:

1. A reservist on active duty for training purposes; or

2. A member of the Reserve Officers' Training Corps, the Naval Reserve 

Officers' Training Corps, or the Air Force Reserve Officers' Training Corps, 

or the Reserve Corps of the Public Health Service while on annual training 

duty performed for a period of 14 days or more, or
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3. An authorized traveler to and from any duty or service described above or

4. A cadet at the US Military, Air Force, or Coast Guard Academy or a 

midshipman at the Naval Academy.

C. MS Periods at SSA

SSA credits MS only during 3 periods. Separate legislation created each of these 

periods. Rules of eligibility and retroactivity require that they cannot be 

considered as one creditable period.

1. World War II: 09-16-1940 through 07-24-47

2. Post-WW II: 07-25-47 through 12-31-56

3. All active duty service beginning January 1957

D. Proof of MS at SSA

The Armed Forces as an employer has reported military wages to SSA quarterly 

or annually since 1957. SSA only requires proof of active duty dates when it is 

relevant to the eligibility or benefit amount of the claim at SSA. 

NOTE: SSA can use MS dates received from RRB (always proven), but MS 

wages shown on SSA records is not acceptable proof as the earnings do not 

confirm the dates MS was performed.

5.4.50.20 SSA Use When all MS is After 1956

A. Active duty MS is covered earnings at SSA starting 1957. MS earnings are 

credited in the same manner as other wages under the SS Act.

B. MS performed after 1956 that is credited under the RRA is not creditable at SSA. 

Upon receipt of notice that RRB will use a TOS, SSA removes the wages from 

any benefits in force and earmarks their records to disregard those MS earnings 

for all future benefit calculations and insured status decisions.

C. The type of discharge is immaterial to the SSA credit, but no credit is given for 

time without pay. 

5.4.50.30 SSA Use When all MS is Before 1957

MS was not taxed and credited as regular earnings by SSA until 1957. However, SSA 

grants credit of $160 per month for MS performed during their WW II and post-WW II 

periods to establish insured status or increase benefits if:

A. MS discharge was not dishonorable; and
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B. RRB is not using the same MS for Tier 2; and

C. No other federal agency is using the same MS; and

D. At least 90 days active duty was performed during the period of 9-16-40 through 

12-31-56, but

When fewer than 90 days of active duty occurred between 9-16-40 and 12-31-56, 

SSA adds wage credits for those years only if:

1. MS terminated due to a service-related disability or injury; or

2. 90 consecutive days of MS occurred either in a period beginning before 

9-16-40 or in a period that ended after 1-1-57; or

3. He was still in active MS on his application file date; or

4. He died while in active MS (except death as lawful punishment by a U.S. 

military court).

E. SSA also credits active MS performed by U.S. citizens during WW II in the 

Armed Forces of allied countries. (Assume that SSA has examined acceptable 

proof of any foreign MS used as wages.)

F. Benefits that include WW II MS (9-16-40 thru 07-24-47) retroact no earlier than 

09/50. Benefit retroactivity is limited to 09/52 for any part based on post WW II 

MS (07-25-47 thru 12-31-56).

5.4.50.40 SSA Use - TOS Before 1957 and After 1956

A. A TOS that is not ended 1-1-57, and multiple TOS not all in the current MS 

period, are credited according to the rules for the current period (see 5.4.50.20) 

unless specified in this section.

B. Receipt of Military Retirement Pay Involved:

If a veteran is on active duty or active duty for training after 1956, SSA credits 

MS performed during 1951-1956, even though the individual is receiving 

retirement pay from the Army, Navy, Air Force, Marine Corps, Coast Guard, 

Coast and Geodetic Survey, or the Public Health Service, based in whole or in 

part on the same MS.

Veterans who retired from MS before 1957 can only receive credit for 1951-1956 

MS if they are called from retirement for active duty or active duty for training 

after 1956.
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5.4.50.50 MS That SSA Cannot Use

MS cannot be used as wages under the SS Act if any of the following apply:

A. WW II MS wage credits cannot be used at all in determining entitlement to or the 

amount of lump sum death payments if death occurred before September 1950. 

Post WW II wage credits cannot be used for a LSDP if death occurred before 

September 1952.

B. MS is considered but not used if an SSA benefit or LS would be payable at the 

same or greater rate without including the MS earnings.

C. MS earnings cannot be used as wage credits if the same TOS is credited as 

compensation under the RRA.

D. Pre-1957 MS cannot be used if a monthly benefit is payable by another federal 

agency (other than the VA) based on the same MS.

5.4.55 MS Earnings Credits

RRB has followed the practice of SSA in setting earnings amounts credited for MS.

5.4.55.10 SS MS Wage Credits

A. At the time a benefit application is filed, for each creditable MS month prior to 

1957, SSA adds $160 to the calendar quarter in which that MS was performed.

B. Effective January 1957 through 1977, the Armed Forces submitted quarterly 

earnings statements for MS basic pay amounts.

C. Beginning 1978 active MS earnings are reported annually to SSA and are 

recorded as ordinary earnings in the same way as other wages.

5.4.55.20 Deemed MS Wage Credits

A. Beginning with 1968 entitlements SSA supplements reported actual MS wages 

with " non-contributory credits" (deemed MS wages) for post-1956 MS to provide 

comparability of MS and other types of earnings used in computing SSA benefits. 

The deemed wages are in addition to the monthly MS basic pay.

B. For benefits beginning effective 1-1-73 deemed wage crediting adds $100 for 

each full $300 of MS earnings on the individual's SSA annual wage report. The 

deemed wages for MS in one year may not exceed $1200, and the deemed 

amount is also restricted by the annual earnings limit for the year the MS was 

performed.
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C. Effective with enlistments after 09-07-80, deemed wage credits are not allowed 

by SSA if the individual completes less than 24 months of the original TOS. 

Other provisions were not changed.

D. In 2001, Public Law 107-117 eliminated deemed MS wage credits for MS 

performed all years after 2001 for both SSA and RRB benefit calculations.

5.4.55.30 Historic Deemed Amounts

A. Prior to the October 1972 SS Act Amendment, the deemed wage credit was 

allowed only for MS after 1967, and amounted to $100, $200, or $300 depending 

upon the amount of an individual's basic service pay in a quarter.

This provision does not produce additional RRB compensation credits for 

creditable MS. However, deemed MS wage credits are to be included in the 

computation of PIA #1, irrespective of creditability, when the MS would otherwise 

be creditable as wages under the SS Act. This provision applies only to the 

computation of PIA #1.

B. Effective 1973, a deemed wage credit of $300 per quarter became creditable for 

each quarter after 1956 in which wages were paid for MS, subject to the annual 

maximum wages limitation for the year(s) MS was performed.

C. Effective with SSA's switch to annual reporting after 1977, deemed MS wage 

credits are granted in $100 increments (up to $1200) for each full $300 of 

annually reported MS wages for years 1978 through 2001.

5.4.55.40 Tier 2 Compensation Credit

See current RCM 5.3.51

5.4.60 Determining RRB or SSA Credit

Both RRB and SSA can credit most MS of an individual who first performed regular 

railroad service, but simultaneous use of any MS TOS by both agencies is prohibited. 

Regulations at both agencies have consistently afforded RRB first consideration for 

determining how MS would be credited.

5.4.60.10 1937 Act Provisions

MS was used in calculating RRB annuities only if it was formally claimed on a RRB 

benefit application. An employee could acknowledge that he performed creditable MS, 

but decline to claim it at RRB if it might provide greater benefit to claim the MS at SSA. 

An employee could also withdraw his RRB claim for an MS term, repay any resulting 

overpayment, and then claim the TOS at SSA.
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5.4.60.20 1974 RRA Provisions

A. A TOS used as railroad compensation in calculating an annuity Tier 2 and/or 

SUPP ANN cannot also be used as wages (PIA 4) in a VDB calculation. RRB 

compares "with and without MS" calculations to determine whether there is 

greater advantage to using an employee's creditable MS as RRB service and 

compensation or as SSA wage credits.

The following possible options are considered:

• MS prior to 1975, when combined with other SSA wage credits in a VDB 

calculation, may result in a higher total annuity than if the MS is used to 

increase a claimant's Tier 2 service and compensation.

• If more than one creditable TOS is proven, part of the MS credited as 

railroad compensation and part used as SSA wages may provide the 

highest total combined benefit.

• If MS is required for insured status and/or earlier eligibility at either 

agency, the highest overall benefit is determined.

B. The reporting of MS to RRB does not prevent use of the same MS by SSA. 

Effective 1957, all creditable MS is recorded as wages. When any part of a TOS 

is after 1956, RRB must notify SSA to remove the TOS from their benefit 

eligibility and calculation records. See 5.4.95. 

5.4.65 Notice of Disallowing MS Credit

A formal denial notice is not appropriate when proven MS information is provided on an 

employee or survivor benefit application but is not used in an award. Under the 1974 

RR Act, MS is identified, not claimed, on an application.

A. Alta Code Paragraphs 332, 333 or 334 are used to notify the employee that MS 

is not creditable. When MS is not needed as wages to vest the employee, and is 

not creditable as compensation, is paid by RASI, Code Paragraph 306 will be 

included on the RL-20 award notice.

B. MS may be a factor in a denial of benefits. If creditable MS does not establish 

eligibility, prepare a RL-64 denial letter to notify employee. Since MS is not 

claimed but only identified on the application, a formal denial is not required 

when it is determined that MS is not creditable.

C. In a death case, do not prepare a disallowance memorandum or inform the 

applicant when disallowing credit for the employee's MS. If the applicant 

specifically asks about the crediting of MS, the contact rep will provide Form 

G-177B or G-429 and explain why credit was not allowed.
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RCM 5.4 Military Service Revised August 16, 2022 Page 22 of 34

5.4.70 MS Effect on Disability Claims

An initial award for a disability claim is usually completed (paid) before a DF decision is 

processed. The most advantageous use of MS may change when the DF determination 

reduces the number of SSA earnings quarters required for insured status. In such paid 

cases, the initial award considered conditional until a DF is established or denied, and 

any impact of the DF on the annuity rate is determined.

5.4.75 MS Effect on SUPP ANN and SPOUSE Awards

For annuity rates effective before 9-1-83 creditable MS is included in the employee's 

total years of service even if that MS was excluded from computation of the employee's 

annuity due to reduction for other federal benefits.

Including MS in the total service was permitted to establish eligibility for a SUPP ANN or 

for a spouse's annuity that would otherwise be denied.

Example: An employee with 24 years of railroad service, 2 years of military service, is 

receiving a 2(a)(iii) (age reduced) annuity with an ABD of 10-1-1978. He turned age 65 

in 10-81 and qualified for a SUP ANN. His annuity was paid before 8-13-83 without 

military service because his rate with military service, after reduction for a VA benefit is 

less than his rate without military service. However, his 26 total years of service 

provides eligibility for a SUPP ANN.

This rule became obsolete 9-83 when reduction of MS credit, for receipt of other 

MS-based federal benefits, was abolished and the regular annuities were recertified 

with MS included.

5.4.80 Applying MS in Survivor Claims

Use of an employee’s MS in survivor benefits depends on whether a retirement annuity 

was awarded prior to the employee’s death, and the effect MS has in the survivor 

benefit calculation. 

A. Military Service Creditable as Compensation

1. MS was used as compensation in the EE benefit: Use the survivor Tier 2 with 

MS.

The inclusion of creditable MS as compensation in the survivor 1981 Tier 2 

computation will increase the Tier 2 payable to a survivor beneficiary because 

it increased the service months used in the calculation.

2. MS used as wages in the EE benefit: If the employee received a vested dual 

benefit (VDB), use the survivor Tier 2 without MS.

3. MS was not used in the EE benefit (includes “D” cases):
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Use MS in the survivor Tier 2 if advantageous.

B. Military Service Creditable as Wages Only

1. MS used as wages in the EE benefit: Use MS as wages.

2. MS was not used in the EE benefit (including “S” cases): 

Use MS as wages if advantageous for a possible higher PIA calculation.

Note: The survivor benefit Tier 1 PIA may increase, whether the MS is credited 

as compensation or as wages, if including MS earnings creates a “high year” in 

the PIA calculation. 

C. Military Service and the Basic Amount

1. MS was used as wages or as comp in the EE benefit: The BA must include 

MS.

2. MS was not used in the EE benefit (including “D” cases):

If there are survivor wage records available which show the Basic Amount 

with and without MS, the examiner may pay the Lump Sum Death payment 

based on the higher wage record. If there is a wage record with MS, the 

examiner need not request one without MS. If a future monthly recurring 

benefit becomes payable and MS was not used in the B.A. calculation, MS 

can be used in the computation of the survivor Tier 2.

The survivor benefit Tier 1 PIA may increase, whether MS is credited as 

compensation or as wages, if including MS earnings creates a “high year” in 

the PIA calculation.

Note: Basic pay for MS performed after 1956 is automatically added to SSA 

wage records.

5.4.80.10 EDM MS Records for Survivor Cases

The EDM screens have missing or incomplete MS information for some older employee 

records. If all MS data is not included on the initial survivor wage record, submit a 

SURGE request, with all the MS included, for a new survivor earnings record.

5.4.80.20 Initial Death Cases

1. “D” Cases

It may be necessary to make an initial decision on the use of MS for a "D" 

survivor claim even though advance proof of MS is recorded in APPLE and 
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RCM 5.4 Military Service Revised August 16, 2022 Page 24 of 34

already credited on EDM. The examiner is responsible for using the MS as 

compensation or wages to the claimant's best advantage in available benefits.

2. "A" Cases and Retirement Conversions

For survivor claims payable after an employee annuity has been awarded, MS 

must be used in the survivor Tier 2 computation, lump sum, and basic amount in 

the same way that MS was included in the employee's annuity. If it’s determined 

that the retirement annuity should have included the MS, it’s permissible to 

include the MS in the survivor annuity prior to referring the case to RBD for 

retroactive MS inclusion in the retirement annuity.

If a survivor applicant provides proof of additional MS TOS, not used as comp or 

wages in the previous calculation of the employee annuity, the additional TOS 

may be used either as compensation or wages, whichever is to the survivor’s 

benefit.

Advance proof of MS may have been recorded in APPLE and already credited on 

EDM, but for a "D Case" survivor claim it may be necessary to make an initial 

decision on the use of MS.

The EDM screens have missing or incomplete MS information for some 

employee records. If MS data is not included on the initial survivor wage record, 

submit a SURGE request, with all the MS included, for a new survivor earnings 

record.

5.4.80.40 Survivor MS Use Chart

Use the information below to determine how the employee's MS should be used in the 

survivor annuity.

Type of Survivor 

Case (A or D)

How MS used by 

Retirement

MS Creditable as 

Compensation

MS Creditable as 

Wages

A Case Retirement used 

MS as comp.*

Use MS as comp in 

the survivor annuity

Not applicable

A Case Retirement used 

MS as wages

If EE received a 

VDB, use Tier 2 

without MS (MS as 

wages).

If EE did not 

receive a VDB, use 

Tier 2 with MS (M/S 

as comp.)

Use MS as wages
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A Case Retirement did not 

use MS as either 

comp or wages

Use MS as comp, if 

it’s to the survivor’s 

benefit

Use MS as wages if

it’s to the survivor’s 

benefit

D case Not applicable Use MS as comp or 

as wages, 

whichever is to the 

survivor’s benefit

Use MS as wages if 

advantageous to 

the survivor benefit

*If MS was erroneously used as comp in the retirement annuity, due to MS not being 

creditable as comp, MS must be used as wages in the survivor annuity. MS should 

always be re-evaluated and corrected in the survivor annuity computation. 

See RCM 5.4.90 below for instruction on when to include new MS proof(s) for benefit 

retroactivity. 

Basic Amount Calculation

Any creditable MS prior to January 1, 1975 can be included in the calculation of 

the basic amount.

IF THEN

MS used as comp in the 

employee annuity Basic Amount must include MS as comp.

______________________

_ ______________________________________

MS used as wages or not 

included in the employee 

annuity (including “D” 

cases)

Include MS as comp if it produces a higher B.A.

5.4.90 MS Credit Retroactivity

If a MS term is not shown on an initial application, or the applicant is unable to provide 

proof of the TOS before the initial final award appeals period expires, that MS may be 

claimed later. The applicant must provide acceptable proof along with a signed 

statement requesting that the credited MS be included in the annuity calculation.

A. An annuity increase due to added MS accrues from the ABD if the MS proof is 

received during the appeals period after an initial award, but benefit retroactivity 

is restricted if the proof is submitted after the initial appeals period.
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RCM 5.4 Military Service Revised August 16, 2022 Page 26 of 34

1. Effective 09-30-97, any annuity increase based on MS proof accrues only 

from the month after the month the proof is received. (No retroactivity.)

2. 10-05-63 through 09-29-97 inclusion of the added MS credit could retroact 

12 months.

3. MS was first allowed as railroad service in an annuity 10-08-40. Until 10-05-

63, retroactivity of added MS credits was 6 months, but not earlier than 

October 1940.

B. If creditable MS was shown on the employee's initial application, and an "initial 

final" annuity was awarded without MS for any documented "action pending" 

reason, the award paid without MS is not a final decision, because a claim 

remains open until a final decision is made on all parts of the application.

5.4.95 RRB/SSA Information Exchange

Reporting an employee's MS to RRB does not prevent use by SSA. Effective 1957, SSA 

taxes and credits military earnings as ordinary wages.

• If RRB uses MS performed after 1956 as railroad months and compensation, we 

notify SSA to remove those wages from SSA benefit calculation records.

• If SSA receives a claim with MS performed before 1957, and the MS would be used 

to establish eligibility or increase a benefit rate, SSA requests creditability 

information from RRB with FORM SSA-655-U2, and will not use the MS that RRB 

reports credited as RR service.

5.4.95.10 MS after 1956 - Processing Form G-17

NOTE: This form and procedure are in revision with SSA coordination. Text will be 

published when new version is approved.

5.4.95.20 MS prior to 1957 - Processing Form SSA-655-U2

SSA calculates benefit amounts based on earnings after 1950. If MS during 1951 

through 1956 is claimed at SSA, before using the MS as wage credits, SSA is required 

to send Form SSA-655-U2 to RRB to determine whether any TOS will be or has been 

used by RRB.

NOTE: The details of the balance of this instruction will be added when current SSA 

action is confirmed.
RCM 5.4

RCM 5.4 Military Service Revised August 16, 2022 Page 27 of 34

5.4.100 MS Accounting Project

5.4.100.5 Background

The law calls for Congress to reimburse the RRB trust fund for any annuity amounts or 

increases that are based on certain MS periods we refer to as reimbursable MS periods. 

An annual MS accounting project is worked each spring by Policy & Systems and/or 

Operations to determine the amount of MS reimbursement for the current accounting 

period.

The MS accounting project determines the EE (including OM), MA, XA and Survivor tier 

1 and tier 2 increase amounts paid due to reimbursable MS periods. They are based 

on comparing the tier 1/tier 2 being paid versus the tier 1/tier 2 minus those MS periods, 

(i.e., annuity rates including reimbursable MS versus annuity rates without the 

reimbursable MS.)

VDBs, supplemental annuities, 1937 Act annuities, and independently entitled XAs 

payable under PL109-280 (the Pension Protection Act of 2006) are not considered for 

this project.

5.4.100.10 Reimbursable MS Periods Defined

The MS reimbursable periods are as follows:

• Any MS periods after 6/30/63, whether creditable as wages or as compensation. (If 

the MS period begins prior to 7/1/63 and extends past that date, only the period after 

6/30/63 would be included in the T1 T2 computations for comparison to the T1 T2 

that was being paid.)

• 1988 amendment MS periods where the voluntary MS was creditable as 

compensation solely based on the 1988 Amendments.

5.4.100.15 Calculation Through Date

Calculations will be needed through the current accounting period.

5.4.100.20 MS Accounting G-90s

An MS accounting G-90 should be requested for all new Financial Interchange (FI) 

cases, by entering a code 2 in item 41 of the G-60 screen. FI cases are defined as 

those having last two digits (30) of the RRB claim number. All other G-60 entries are 

the same as you would enter for an initial G-90 request. Be sure EDM is updated for all 

MS periods before requesting a M/S accounting G-90.

MS accounting G-90s will not have reimbursable MS periods displayed, providing tier 

1/tier 2 amounts for comparison with the tier 1/tier 2 paid. Examiners should determine 

the difference in tier 1 and tier 2 amounts for each date break from the ABD through the 
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current accounting period. Compute net tier 1/tier 2 amounts after any reductions for 

age, SSA, etc.

5.4.100.25 Categories of Work

Each annual project normally will consist of the following work categories:

• New Financial Interchange (FI) cases

• New occupational disability cases

• Previously identified FI cases for updating

• Previously identified occupational disability cases for updating

5.4.100.30 Handling for Each Category of Work

Take the following action for each category of M/S accounting work:

Category What Needs To Be Done

1. New Financial 

Interchange (FI) Cases

Request a MS accounting G-90, (code 

2 in item 41) comparing the tier 1/tier 2 

amounts with the tier 1/tier 2 paid. The 

differences in these tier 1/tier 2 amounts 

should be shown on the MS accounting 

worksheet from the ABD through the 

current accounting period. 

2. New Occupational 

Disability Cases

Determine total tier 1/tier 2 amounts 

and complete the MS accounting 

worksheet for each date break from the 

ABD through the current accounting 

period. (*See manual calculation 

exceptions in RCM 5.4.100.50, 

situations 3 and 4.) Full tier 1/tier 2 

amounts are reimbursable amounts 

when the employee lacks 240 service 

months without MS, and, therefore, 

eligibility to an occupational disability 

does not exist without reimbursable MS 

periods. 

3. Previously Identified FI 

Cases (digit 30)

Update the MS reimbursable amounts 

on the existing MS accounting 
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RCM 5.4 Military Service Revised August 16, 2022 Page 29 of 34

worksheet beginning with the month 

after the last accounting period through 

the current accounting period.

4. Previously Identified 

Occupational Disability 

Cases

Update the MS reimbursable amounts 

on the existing MS accounting 

worksheet (full tier 1/tier 2) beginning 

with the month after the last accounting 

period through the current accounting 

period.

5.4.100.35 Worksheets

Reimbursable MS accounting amounts must be shown on a worksheet for each newly 

identified MS accounting case. Examiners will be provided with the old MS accounting 

worksheet for previously identified cases, which should be completed with updated 

reimbursable MS accounting amounts through the current accounting period. If MA/XA 

in pay status, show the amounts for each payee.

For cases where the annuity is terminated or suspended, show MS accounting amounts 

through the month before the month that the annuity terminated. 

There are cases where the MS period may not increase the annuity rate, if the MS is 

creditable as wages only. If the annuitant(s) is receiving an annuity, but the MS 

accounting amount is zero, show zeroes through the current accounting period. Use 

the remarks section to explain unusual situations (e.g., annuity terminated 5/02).

5.4.100.40 Folderless Handling of Previously Identified FI Cases

Procedures for handling this category of folderless work is as follows:

• Check DATAQ/PREH to determine that the EE/MA/XA are still in pay status through 

the current accounting period. If entitlement ended, show MS accounting amounts 

(even if zero) through the month before the month of suspension/termination. 

Notate on the worksheet, the month and cause of termination, so that future 

updating is unnecessary.

• Check PREH Screen 3210 to determine whether any reductions are being made in 

tier 1 (age, SS, WC, etc.). If not, proceed folderless. If so and the MS accounting 

amounts include tier 1 amounts, request the folder or review the virtual folder via 

Web Connect. 

• Multiply the MS reimbursable amounts from earlier periods on the MS accounting 

worksheet by the tier 1 and tier 2 COL percentage increases to determine the MS 

accounting amount totals for the current accounting period. Round the computed 

tier 1 amounts down to the dollar.
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RCM 5.4 Military Service Revised August 16, 2022 Page 30 of 34

5.4.100.45 Folderless Handling of Previously Identified Occupational Disability 

Cases

• Check PREH Screen 3255to determine whether a DF was granted after the ABD. If 

so, MS accounting ends 5 full months after the DF grant (e.g., if DF date 4/1/02, then 

MS accounting ends 9/1/02).

• Check DATAQ to determine that employee in pay status through the current 

accounting period. If entitlement ended, show MS accounting amounts through the 

month before the month of termination.

• Check PREH Screens 3210 and 3215 to determine the current accounting period 

tier 1/tier 2 amounts, which would normally be the reimbursable amounts.

• Check DATAQ/PREH to determine that employee still is under age 60/62 does not 

have a DF and would not qualify for any other type annuity based on service without 

reimbursable MS. If so eligible, obtain folder or review the virtual folder via Web 

Connect and determine difference in tier 1/tier 2 between occupational disability 

annuity and new annuity to which employee would be entitled (reduced age annuity 

at age 62, or occupational disability annuity at age 60 based on 120 service months 

and a current connection).

5.4.100.50 Manual Calculations Required

Examiner may need manual calculations in the situations below:

1. (FI categories): 60/30 employees where the deletion of the reimbursable MS gives 

the employee less than 360 service months and no entitlement to that type of 

annuity. The MS accounting G-90 will provide no 60/30 annuity PIA calculations, so 

a G-563 should be sent to CCU for reduced age 62 calculations. The entire tier 1 

and tier 2 will be the reimbursable amount from the 60/30 ABD until age 62, and 

then the difference between the 60/30 tier 1, tier 2 and the newly computed fictional

reduced age 62 tier 1 and tier 2 amounts effective with the fictional reduced age 62 

ABD.

2. (FI categories): If employee retains 360 service months without the reimbursable 

MS, but the PIA 1/tier 2 from the initial G-90 differs from the MS accounting initial G90. You will need an age 62 recalculation MS accounting G-90, or get calculations 

via G-563. (An MS accounting G-90 type 62 request for the age 62 recalculation for 

calculations without MS reimbursable periods could also be requested.)

3. (Occupational disability categories): Occupational disability annuitant now over age 

62 where the deletion of the reimbursable MS provides less than 240 service months 

and no eligibility to an occupational disability annuity. Reduced age 62 annuity 

calculations must be requested using a fictional ABD at age 62, since the employee 

is not entitled to the occupational disability annuity. The entire tier 1 and tier 2 will 

be the reimbursable amount from the occupational disability ABD until age 62, and 
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RCM 5.4 Military Service Revised August 16, 2022 Page 31 of 34

the difference between the occupational disability tier 1/tier 2 and the newly 

computed reduced age 62 tier 1/tier 2 amounts will be the reimbursable amount from 

the fictional reduced age 62 ABD.

4. (Occupational disability categories): Occupational disability annuitant now over age 

60 with at least 120 service months and a current connection. Employee still entitled 

to an occupational disability annuity even without reimbursable MS. But tier 1 and 

tier 2 without reimbursable M/S must be compared with all MS to determine MS 

accounting amounts at age 60 & over. A MS accounting G-90 should be requested, 

which may have a different year of eligibility.

5. (All categories where a new MS accounting G-90 is used): See RCM 5.4.100.55

below.

5.4.100.55 Post-1963 MS PIA #1 Errors on MS Accounting G-90s

BACKGROUND: Beginning in 1957, all M/S pay is reported as wages. Deemed MS 

credits are also added to the employee’s wage record. Deemed MS credits are added 

in by CCU examiners for the years 1957-67 for each year of MS shown on the G-90. 

SSA includes deemed MS credits in its wage totals for the years of MS beginning in 

1968 through 2001.

Even though the post-1963 MS period(s) is not shown under “MS Data” on the MS 

accounting G-90 on GOLD, MS earnings are included in the wage total for each year 

beginning from 1963 forward. Further, deemed MS credits are erroneously included for 

each year of MS beginning in 1968. Manual MS accounting PIA #1 calculations must 

be requested to exclude these earnings totals.

Based on a prior study, we assume that ANY wages posted for a year in which the 

employee had MS is all MS earnings.

EXAMPLE: Employee has MS period from 12/64 through 1/66, all wages posted for 

1964, 1965, and 1966 are assumed to be MS earnings.

Examiners should take the following actions for MS 1963 and later:

IF AND ACTION

MS periods ending in a 

year from 1963 through 

1967.

MS accounting G-90 PIA #1 

is same as on final G-90.

Take no action. (Assume 

the MS years are drop-out 

years and no MS 

accounting amounts are 

applicable in tier 1.) 
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RCM 5.4 Military Service Revised August 16, 2022 Page 32 of 34

MS periods ending in a 

year from 1963 through 

1967.

MS accounting G-90 PIA #1 

is lower than on final G-90.

Refer the MS accounting G90 via G-563 to CCU 

asking that wages be 

excluded from the PIA #1 

calculation for each MS 

year from 1963 through 

1967. Specify the MS 

years as they would not be 

shown on the MS 

accounting G-90. (Deemed 

MS credits will already have 

been excluded from the MS 

accounting PIA #1 

calculation.)

MS periods ending 1968 or 

later.

MS accounting G-90 PIA #1 

is the same as on the final 

G-90.

No action necessary. 

(Assume the MS years are 

drop-out years and no MS 

accounting amounts are 

applicable in tier 1.)

MS periods ending in 1968 

or later.

MS accounting G-90 PIA #1 

is lower than the PIA #1 on 

the final G-90.

Refer the MS accounting G90 via G-563 to CCU 

requesting that:

• The wages be 

excluded for years 

1963 through 1967

 AND 

• Wages and deemed 

MS credits be 

excluded from the 

PIA #1 calculation 

for each MS year 

1968 and later. 

Specify the MS years on 

the G-563 request as they 

would not be shown on the 

MS accounting G-90.
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RCM 5.4 Military Service Revised August 16, 2022 Page 33 of 34

5.4.100.60 ROC and PC Awards

Examiners may wish to use ROC or PC award programs for computing the MS 

accounting amounts.

5.4.100.65 Annuity Adjustments

For purposes of each year’s project, examiners should assume that what is being paid 

is correct for comparison purposes. Correcting annuity rates is not the purpose of the 

annual project.
RCM 5.4

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