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4.7.1 When Dependency Required

A. Life Cases - Dependency of a child upon the employee is required when:

1. The employee's annuity is to be increased under the O/M by including a 

child, a grandchild or a spouse who has a child in her/her care; or

2. A spouse under age 65 files for a full spouse annuity on the basis of a 

child or a grandchild in her/his care.

Dependency upon a natural or legally adopting parent is usually deemed for a 

legitimate or legitimated child or such a parent. If dependency is deemed, an 

indication that a child is actually dependent on someone other than the employee 

is immaterial.

B. Survivor Cases - Dependency of a child upon the deceased employee is required 

for entitlement to a CIA. Dependency must be established at the time of the 

employee's death unless the employee has a period of disability freeze (DF) that 

continued until he met the conditions for entitlement to an RIB or DIB or until his 

death. If the deceased employee had a period of disability freeze (DF) that 

continued until he became entitled to an RIB or DIB or died, the dependency 

requirements can be met at the following points:

• At the beginning of the period of disability (DF), or

• At the time the employee became entitled to a DIB, or

• At the time the employee became entitled to an RIB.

The dependency requirement must be met even if the child was previously 

determined to be dependent upon the employee for the purpose of increasing the 

employee's O/M or qualifying a spouse for an annuity. 

4.7.2 When Dependency Requirement Must Be Met

The point in time at which a child must be dependent upon the employee varies 

according to the type of claim. See RCM 4.7.15.

4.7.3 Child's Dependency Upon Natural Or Legally Adoptive Parent 

(Employee)

A. Life Cases - A legally adopted child (including a grandchild) who is adopted by 

the employee during his lifetime is deemed dependent for payment of RR formula 

annuities, and as such can qualify a spouse for a full spouse annuity if the "in 

care" requirement is met. However, if an adopted child is to be included in the 
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computation of the employee's annuity under the O/M, the following requirements 

must be met.

1. Months After 9-1972 - Deem a child dependent upon the employee when 

the employee is his natural parent. Deem a legally adopted child 

dependent upon the employee when the employee is his legally adoptive 

parent. This is true even when the child is living with and chiefly 

supported by his stepfather. A child will not be removed from the 

employee's O/M computation if he is subsequently adopted by someone 

other than the employee.

2. Months After 1-1968 and Prior to 10-1972. - A child is deemed dependent 

upon the employee as for months after 9-1972 unless subsequently 

adopted by someone other than the employee.

3. Months After 8-1960 and Prior to 2-1968

a. Male Employees - The rules for establishing dependency are the 

same as for months after 1-1968 and prior to 10-1972.

b. Female Employee - Deem a child dependent upon the employee 

when the employee is his natural mother or legally adoptive mother 

if insured under the RR Act. If the employee is not currently 

insured under the SS Act or partially insured under The RR Act, the 

child is dependent upon her only if:

• The employee contributes one-half of the child's support; or 

• The employee is living with or contributing to the child's support 

AND the child's natural or adopting father is neither living with 

nor contributing to the child's support.

4. Months Prior to 9-1960

a. Male Employee - A child is dependent upon his natural or legally 

adopting father (employee) if:

• Such father is living with or contributing to the child's support; or

• The child is the employee's legitimate or legally adopted child, 

has not been adopted by someone else, AND is not living with 

AND receiving more than one-half of his support from his 

stepfather.

NOTE: In those States in which adoption by another person during 

the natural father's lifetime does not cut off inheritance rights 

between the child and such father, the child may qualify on the 

insured status of the natural father. However, in such a case, the 
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child is dependent upon his natural father ONLY if the he is living 

with or receiving contributions for support from such father.

b. Female Employee - The rules for establishing dependency are the 

same as for months prior to 2-1968 and after 8-1960.

B. Survivor Cases

1. Months After 9-1972 - Deem a natural child dependent upon the deceased 

employee when the employee was his natural parent. Deem a legally 

adopted child dependent upon the deceased employee when the 

employee was his legally adoptive parent. The child's benefits or annuity 

will not be terminated if he is subsequently adopted.

2. Months After 1-1968 and Prior to 10-1970 - A child is deemed dependent 

upon the deceased employee as for months after 9-1972 unless he is 

adopted by someone other than a stepparent, grandparent, aunt, uncle, 

brother or sister. If a child is adopted by someone other than one of these 

"close" relatives, his annuity must be terminated. However, be can qualify 

as an IPI, if another family member is being paid under the O/M.

3. Months After 8-1960 and Prior to 2-1968

a. Male Employees - The rules for establishing dependency are the 

same as for months after 1-1968 and prior to 10-1972.

b. Female Employees - Deem a child dependent upon the deceased 

employee when the employee was his natural mother or legally 

adoptive mother if the employee was currently insured under the 

SS Act or partially insured under the RR Act. If the employee was 

not currently insured under the SS Act or partially insured under the 

RR Act, the child is dependent upon her only if:

• The employee contributed one-half of the child's support; or

• The employee was living with or contributing to the child's 

support AND the child's natural or adopting father is neither 

living with nor contributing to the child's support.

4. Months Prior to 9-1960

a. Male Employee - A child is dependent upon his natural or legally 

adopting father (employee) if:

• Such Father was living with or contributing to the child's support; 

or
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• The child was the employee's legitimate or legally adopted child, 

has not been adopted by someone else, AND is not living with 

AND receiving more than one-half of his support from his 

stepfather.

NOTE: In those States in which adoption by another person during 

the natural father's lifetime does not cut off inheritance rights 

between the child and such father, the child may qualify on the 

insured status of the natural father. However, in such case, the 

child is dependent upon his natural father ONLY if he is living with 

or receiving contributions for support from such father.

b. Female Employee - The rules for establishing dependency are the 

same as for months prior to 2-1968 and after 8-1960.

4.7.4 Child Legally Adopted By Employee's Widow(er)

Deem the child dependent upon the deceased employee if:

• The child was living in the employee's household at the time of the employee's 

death; and

• At the time of the employee's death, the child was not receiving regular and 

substantial contributions for his support from any public or private welfare 

organization which furnishes assistance or services for children, or from any person 

other than the employee or spouse.

NOTE: The above rules apply both to children adopted within two years of the 

employee's death and to children adopted more than two years after the employee's 

death when adoption proceedings were initiated before the employee's death.

4.7.5 Child's Dependency Upon Equitably Adopting Parent

Do not deem a child's dependency upon an equitably adopting parent as in the case of 

a legally adopting parent. Establish dependency upon an equitably adopting parent in 

accordance with A or B below.

A. Equitably Adopting Father - He must either:

• Be living with the equitably adopted child; or

• Be contributing to the equitably adopted child's support.

B. Equitably Adopting Mother

1. Months After 1-1968 - She must either:

• Be living with the equitably adopted child; or
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• Be contributing to the equitably adopted child's support.

2. Months Prior to 2-1968 - She must either:

• Be contributing one-half of the equitably adopted child's support; or

• Be living with or contributing to the equitably adopted child's support 

AND the natural or adopting (including equitably adopting) father is 

neither living with nor contributing to the child's support.

4.7.6 Child's Dependency Upon Stepparent

Do not deem a child's dependency upon a stepparent. Establish dependency upon a 

stepparent in accordance with A, B or C below.

A. Stepfather (Prior to July 1, 1996) - He must either:

• Be living with the stepchild; or

• Be contributing one-half of the stepchild's support.

B. Stepmother (Prior to July 1, 1996)

1. Months After 1-1968 - She must either:

• Be living with the stepchild; or 

• Be contributing one-half of the stepchild's support.

2. Months Prior to 2-1968 - She must either:

• Be contributing one-half of the stepchild's support; or

• Be living with or contributing to the stepchild's support AND the natural 

or adopting father is neither living with nor contributing to the 

stepchild's support.

C. Stepparents Effective July 1, 1996

• The employee must be contributing at least one-half support to the stepchild. 

"Living-with" is no longer an option for meeting dependency.

4.7.7 Illegitimate Child's Dependency Upon Parent

Apply the following rules when an illegitimate child cannot be deemed a child of the 

employee under the 2-1968 amendments to the RR Act.

A. Father
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1. Effective 6-29-76 - Dependency is deemed if the child has inheritance 

rights under State law.

2. Prior to 6-29-76 - Determine the child's dependency upon the father by the 

child's status under applicable State law (see RCM 4.4.61). If the child is 

recognized or acknowledged by the father for inheritance purposes under 

applicable State law, the child is dependent if the father:

• Is living with child; or

• Is contributing to the child's support.

If the recognition or acknowledgement is sufficient to legitimate the child 

under applicable State law, deem the child dependent upon the father as 

for a legitimate child (see sec. 4.7.3).

B. Mother

1. Effective 6-29-76 - Dependency is deemed if the child has inheritance 

rights under State law.

2. Months After 1-1968 - Determine the child's dependency upon the mother 

by the child's status under applicable State law(see RCM 4.4.61) If the 

child is recognized or acknowledged by the mother for inheritance 

purposes under applicable State law, the child is dependent upon the 

mother if she:

• Is living with the child; or

• Is contributing to the child's support.

If the recognition or acknowledgement is sufficient to legitimate the child 

under applicable State law, deem the child dependent upon the mother as 

for a legitimate child (see sec.4.7.3).

3. Months Prior to 2-1968 - If the mother is currently insured under the SS 

Act or partially insured under the RR Act, deem the child dependent upon 

the mother regardless of the child's status under applicable State law.

If the mother is not currently insured under the SS Act or partially insured 

under the RR Act, the child is dependent upon the mother if she is:

• Contributing one-half of the child's support; or

• Living with or contributing to the child's support AND the child's father 

is neither living with nor contributing to the child's support.
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4.7.8 Deemed Child's Dependency Upon Parent

A. Child of Invalid Ceremonial Marriage - For months after 1-1968, deem the 

dependency of such a child upon his natural parent as for a legitimate child (see 

sec. 4.7.3). Since the dependency of such a child is deemed, it is not necessary 

to determine whether the child has inheritance rights under applicable State law.

B. Illegitimate Child Deemed a Child for Months After 1-1968 - Deem the 

dependency of such a child upon the parent as for a legitimate child upon the 

parent as for a legitimate child (see sec. 4.7.3).

4.7.15 When To Develop Dependency

The following table summarizes dependency tests for months after 12-1972.

CHILD'S STATUS DEEPENDENCY TEST

Legally adopted child Deemed unless child adopted by someone else during 

employee's lifetime. 

Legally adopted by 

employee's widow(er)

Established by "Living with" and child's receipt of 

support only from employer or spouse.

Equitably adopted child Established by "Living with" or contributing to child's 

support.

Stepchild Established by "Living with" or contributing one-half of 

child's support prior to July 1, 1996.

Effective July 1, 1996, "living-with" is no longer an 

option for meeting dependency. Dependency can only 

be established by one-half support.

Illegitimate child with 

inheritance rights

Established by "Living with" or contributing to child's 

support. Effective 6-29-76 dependency is deemed.

Grandchild* Established by "Living with" and contributing one-half of 

child's support.

*NOTE: In establishing the dependency of a grandchild on the employee, the 

grandchild must have:

• Begun living with the employee before the grandchild attained age 18;

• Lived with the employee for the entire year, specified below; and
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• Received at least one-half support from the employee for the entire year specified 

below.

The grandchild must have been living with and receiving at least one-half support from 

the employee for the entire year before:

• The month in which the employee met the conditions for entitlement to an RIB or 

DIB under the SS Act or the month in which he died; or

• The month in which the employee's period of disability began which continued until 

he met the conditions for entitlement to an RIB under the SS Act or until his death.

If the grandchild was born during this one year period, the dependency requirements 

are deemed to be met if the grandchild lived with the employee in the U.S. and received 

at least one-half support from the employee for substantially the entire period between 

the date of his birth and the earliest of the above mentioned dates.

4.7.16 Determining Whether Child Is "Living With"

"Living with" means that the child and parent share a common roof under conditions 

which indicate more than mere coincidence of residence. It also means that the parent 

has the right to exercise, or is exercising, parental responsibility and authority.

Periodic or temporary separation does not prevent a finding of "Living with" if the 

circumstances indicate that the child and parent have shared and again intend to share 

a common roof or resume common residence when conditions permit. Thus, a parent 

in the Armed Forces who shares a common roof with the child until induction is deemed 

to be "Living with" the child. However, if the child is in the Armed Forces or committed 

to a correctional institution, do not consider him to be "Living with" his parent since the 

parent does not have the right to exercise parental control.

4.7.17 Contributions To Child's Support

A. General - "Contributions to support" means regular and substantial contributions 

in cash or kind. The amount of contributions must be a material factor in the 

reasonable cost of the child's support. Whether contributions to the child's 

support are voluntary or compulsory does not matter. Therefore, a court order 

for support is not significant; consider only contributions actually made without 

regard to the amount the court order specifies.

Benefits to a child based on the employee's insured status are contributions by 

the employee.

Gifts or donations at special times or for special purposes usually are not 

contributions, nor are funds set aside for the child's future use contributions. 

Donations are contributions only if they are given for the child's support and are 

large enough to provide some of the usual necessities.
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B. Determining One-half Support - Consider contributions in both cash and kind 

when determining whether a parent contributes at least one-half of the total cost 

of the child's support.

In most cases, both the stepparent and the natural parent use their earnings for 

the benefit of each member of the household. If this is done, deem the 

contribution of each parent to the child's support to be in proportion to the 

earnings of each parent.

However, if there is evidence that some of the earnings of a parent are 

earmarked for a special purpose not in connection with the household, reduce 

such parent's contribution by the amount so earmarked.

C. Limited Interruption Rule - "Contributions to support" can be established even 

though the normal pattern of contributions is disturbed by a temporary 

interruption (i.e., does not involve an assumption of support by someone else on 

a permanent and continuing basis). However, the evidence must prove that the 

interruption is involuntary (i.e., due to ill health, disability, unemployment, etc.) 

and that contributions would have been continued had conditions permitted.

4.7.18 Statement Regarding Support

When applicable (see sec. 4.7.15), obtain a sworn statement from the applicant or other 

person having knowledge of the facts regarding contributions to the child's support. The 

statement should furnish the following information:

• Name of person who is contributing to the support of the child and relationship to the 

child;

• How often cash payments are made by such person for the support of the child:

• The usual amount of each payment;

• The period of time over which the payments are made;

• The amount and date of the last payment;

• A description of any contributions made in a form other than cash and their cash 

value;

• The name of the person to whom payments are made for the child's support.

In addition, if the pooled fund method can be used in determining if the one-half support 

requirement is met, secure the amount and source of income of each member of the 

single family residing in the household. (See Section 4.7.51 for an explanation of the 

"Pooled Fund Method of Determining Support" and when this method can be used.)
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4.7.25 Support

A. General - Support is the maintenance of a person necessary for his well-being. It 

includes such things as food, clothing, shelter, current medical needs, etc. 

Support of a person can be shown by contributions in cash, kind, or services.

B. One-Half Support - One-half support means that the applicant is receiving regular 

contributions in cash, kind, or services from the employee and the contributions 

equal or exceed 50% of the applicant's income from all sources. If applicable, 

use Form G-134a to test for one-half support according to the instructions in 

RCM Part 11.

4.7.26 Standards For Determining Support

The standards discussed in this chapter are merely guides for determining whether the 

one-half support requirement is met. When applicable, these guides are intended to 

simplify development, but do not use them to establish entitlement which would not exist 

on a factual basis.

Do not consider the standards hard and fast rules; if the circumstances of the individual 

case make their application unrealistic, disregard them. For example, if the employee's 

income is so low or the applicant's income from other sources is so high that a finding of 

support would be unreasonable, do not follow the guides.

The standards discussed in Sections 4.7.40 - 4.7.79 apply to all support determinations. 

However, in addition, there are special rules to determine the support of husbands and 

widowers (Sections 4.7.28 - 4.7.32 and divorced women (Section 4.7.85).

4.7.27 When Proof Of Support Is Required

In retirement or survivor cases, certain beneficiaries must submit proof of support to 

meet an exception to the public service pension offset provision; proof is also required 

in certain cases of child dependency.

A. Life Cases - Proof of support is required for a husband's annuity prior to 3-1-77. It 

is also required in certain cases involving a divorced wife to be included under 

the O/M prior to 10-4-72.

B. Survivor Case - Proof of support is required for a widower's annuity prior to 3-1-

77 and a parent's annuity. It is also required to pay a windfall or an employee 

annuity restored amount to a widower.

4.7.28 Determining Support When Husband And Wife Living Together

In addition to the normal rules for determining support (Sections 4.7.40 - 4.7.79), 

assume that the husband and wife share equally, in terms of support, in all income 
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received in the household regardless of their individual income. Unless there is 

evidence to the contrary, compute the applicant's support as follows:

• Ascertain the total individual incomes of husband and wife from all sources (see 

Sections 4.7.29, 4.7.31 and 4.7.32); and

• Exclude from this total the amount not used for the support of either party (e.g., 

extraordinary expenses, etc,); and

• Divide the balance equally between the husband and wife.

This prorated share is the support received by the applicant. When his individual 

income is one-half or less of this amount, he is receiving one-half of his support from the 

employee. Use Form G-134a when making one-half support determinations (per RCM 

Part 11 instructions). If public assistance is involved, see Section 4.7.66.

4.7.29 Source Of Income For Support When Husband And Wife Living 

Together

In the absence of evidence to the contrary, assume that the husband and wife have an 

equal share in all outside income. As used here, outside income includes income from 

jointly owned property, income from roomers and/or boarders, withdrawals from joint 

savings accounts, contributions from third parties, servicemen's dependents' 

allowances, etc. It does not include income received through their individual efforts, 

such as income from services, pensions, royalties, income from individually owned 

property, etc.

4.7.30 Determining Support When Husband And Wife Living Apart

Determine the husband's individual income exclusive of his wife's contributions. When 

the amount contributed by the wife equals or exceeds the husband's individual income, 

he is receiving one-half of his support from his wife.

4.7.31 Determining Support When Applicant Alleges That His/Her Own 

Income Is Not Used For Support Purposes

If the applicant alleges that his/her own income is not used for his/her own support, it 

must be determined what the income is actually used for. If the income was available 

for support purposes but the applicant chose to use it otherwise, it must still be 

considered in the support picture. Document the file as to the applicant's income and 

how the monies were used and make a support determination considering all the case 

facts.

If the income is used for a predetermined situation (e.g. alimony or child support) 

document the file to verify this. If it cannot be verified, the income cannot be excluded 

when determining support.
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4.7.32 Effect Of State Community Property Statutes On Support 

Determinations

Disregard State community property statutes in determining the source of income of 

either the wife or husband. Even though the earnings of one party could, under State 

law, become the common property of both parties, attribute such earnings solely to the 

party receiving the income.

4.7.40 When Employee Must Have Supported The Applicant

An applicant must have been receiving at least one-half support from the employee in 

the appropriate month. For the rules that apply to each of the following classes of 

applicants, refer to:

• Children - RCM secs. 1.5.22 and 1.5.24; and 2.4.42;

• Parents - RCM sec. 2.5.21; or

• Spouse - RCM secs. 1.3.2(E), 1.3.155, 1.3.185, and 1.3.188;

• Widowers - RCM sec. 2.2.15.

Although the month the support requirement is to be met means the month in which 

such event(s) occurred, consider the facts relating to the applicant's total support for a 

reasonable period before such month in determining whether the support requirement is 

met. The following three sections illustrate the application of this principle.

4.7.41 Twelve Months As A Reasonable Period

An applicant meets the support requirement at the applicable time if during the 12-

month period preceding that time the employee contributed regularly and without a 

permanent break at least one-half the applicant's whole support. When there is a 

change in the support pattern, the period to be considered in determining the support 

begins with the change in circumstances unless unfortunate circumstances are present.

Consider changes caused by seasonal employment to be temporary, not permanent. 

Therefore the 12 month period must be considered in any case not involving adverse 

circumstances.

When the employee did not contribute anything during the 12-month period, it is 

unrealistic to find support.

4.7.42 Three Months As A Reasonable Period - Unfortunate 

Circumstances Involved

The applicant is receiving at least one-half support if:
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• The employee contributes at least one-half of the applicant's whole support for at 

least 3 months of the support year; and

• Unfortunate circumstances such as illness, unemployment, etc., prevent the 

employee from making further contributions; and

• The applicant's income during the rest of the year (excluding initial or supplemental 

public assistance grants first received after the employee stopped contributing) is 

reduced 25% or more.

Count the 3 months either consecutively or intermittently. However, this rule does not 

apply if there is a clear assumption of the burden of furnishing more than one-half 

support by the applicant or by another person after the employee is forced to stop 

supporting the applicant. Do not consider the initial receipt of, or increase of, public 

assistance or other relief after the employee stopped contributing as an assumption of 

support by the agency furnishing the support.

A temporary lessening of contributions does not prevent a finding of support. If the 

employee's contributions are gradually reduced because of unfortunate circumstances, 

deem these circumstances to have happened at the point when the employee 

contributes one-half of the applicant's whole support. Disregard the date of last 

contribution.

4.7.43 Other Reasonable Periods

The applicant meets the support requirement at the applicable time if the employee, 

during a reasonable period just before the applicable time, contributes at least one-half 

of the applicant's support.

A period however short is reasonable. The test is whether the employee plainly showed 

an intent to provide at least one-half of the applicant's support on a continuing and 

permanent basis. Evaluate the employee's intent and actions based on that intent to 

determine what is a reasonable period in each case. Even a month or less may be 

reasonable depending on all the facts.

When the applicant receives wages and/or SE income during part of the year before the 

employee's annuity began or before the employee's death but not in the period just 

before the employee's ABD or death, have the applicant state whether the employment 

was permanent or temporary, or regular or seasonal in nature. If the applicant could 

reasonably be expected to return to regular employment at the time of, or shortly after, 

the employee's ABD or death, the reasonable period rule usually will not apply. In such 

cases, use the 12-month period if the employee contributes at least one-half of the 

applicant's support during that part of the year in which the applicant is employed or 

self-employed.
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4.7.50 Determination Of Income

Any payment received by the applicant in cash, kind, or services (including any 

proceeds from property), is income to the applicant. Also include the amount of unpaid 

debts contracted by the applicant for current support during the period for which support 

is being determined.

4.7.51 Pooled Fund Method Of Determining Support

A. General - When the pooled fund method is used to establish support, it is 

assumed that each member of the family shares equally in the income received 

by the family for support. This method can be used to determine whether the 

dependency requirement is met for purposes of qualifying:

• A parent of a deceased employee for an insurance annuity

• A grandchild of a deceased employee for an insurance annuity (if the 

dependency requirement is met, as well as all other requirements, such a 

grandchild can qualify the (widow(er) for an annuity if the child is in the 

widower's care);

• A grandchild as an IPI in the employee's O/M computation or for Medicare;

• A grandchild who can qualify the employee's wife under age 65 for an 

unreduced spouse's annuity based on having the grandchild in her care or, 

effective 5-1-83, can qualify the employee's husband for an unreduced 

spouse's annuity based on having the grandchild in his care;

• A grandchild, who can then qualify for Medicare as a disabled child of the 

employee, whether or not the employee's annuity is under the O/M;

• The husband of a retired employee for a spouse annuity prior to 3-1-77; or

• The widower of a deceased employee for a widower's annuity prior to 3-1-77 

and/or for a RIB/DIB windfall prior to 8-13-81.

Although the pooled fund method can be used to establish dependency on the 

employee, the other requirements for benefits must also be met.

The pooled fund method cannot be used to establish support when:

• Separate family groups are living in the same household; or

• A father is under a court order to support his minor children, but the order 

does not provide for payments to the mother; or

• There is evidence indicating that the income for support is not shared equally,
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The pooled fund method should not be used when it would disprove support for 

an applicant (alleged dependent) by a narrow margin.

When the pooled fund method cannot be used and the $170.10 rule does not 

apply (see sec, 4.7.77), an actual comparison of the applicant's income and the 

employee's net contributions must be made (see sec. 4.7.18).

B. Applicant and Employee Living in Employee's Home - Where possible, an 

applicant's support will be computed under the pooled fund method. In applying 

the pooled fund rule, no distinction is made for the age of the members of the 

household in figuring their support. This is because it is generally not possible to 

demonstrate that young people or elderly persons may not use as much food, 

living space, utilities, etc., as the others members of the household. Support is 

computed on Form G-134a by dividing the total funds coming into the family by 

the number of members in the household. The result constitutes the amount of 

each member's support.

EXAMPLE 1: The employee died in 1-1968, and in February his mother filed an 

application for parent's benefits. In the year preceding the employee's death, his 

mother had lived with him, his wife, and two minor children. Development 

established that the employee's earnings of $6,000 were used as support of the 

family as was his mother's income of $1,000($480 from a pension and $520 

given by another son). The total funds available for the support of the household 

were $7,000. Since there were five members of the household, the annual "cost" 

of support for each was $1,400. The mother was not receiving one-half of her 

support from the employee since her income from other sources ($1,000) 

exceeded one-half of her support ($700).

When more than one member of a household contributed to the support of the 

household; the proportion of one member's contributions to any other members is 

the same as the proportion of his contributions (less his own support) to the total 

income.

EXAMPLE 2: In the year preceding the employee's death, his mother lived with 

him, his wife, and his minor child. Development established that his income of 

$3,450, his wife's income of $1,950 and his mother's income of $400 were all 

used for support of the family. The total funds available for support were $5,800 

and since there were four members of the household, the cost of support of each 

was $1,450. The mother's income of $400 is considered being used entirely for 

her own support. The balance of her support, $1,050, came from the 

contributions of the employee and his wife.

Employee Wife

Income available for support $3,450 $1,950
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Cost of own support - 1,450 - 1,450

Balance available for support of other 

members of the household

$2,000 $ 500

The employee's proportionate contribution to other members of the household is 

determined by dividing $2,000 (his support for them) by $2,500 (support for them 

contributed by employee and wife). The employee's contribution to this mother's 

support may be found by multiplying the resulting fraction of 4/5 by $1,050. $840 

exceeds $725 (one-half of the mother's total support). Therefore, the one-half 

support rule would be met for purposes of qualifying the mother for an annuity.

C. Employee Living in Applicant's Home - The pooled fund method cannot be used 

because it cannot be assumed that the income of the household was pooled. 

Instead, compute the employee's net contribution to the support of the applicant 

and compare that amount with the applicant's income from other sources.

4.7.52 Income From Employment

For support purposes, the applicant's net income from employment is the amount of pay 

remaining after deducting expenses incurred in furthering his employer's business.

4.7.53 Income From Property

A. Personal Service Not Involved - When the applicant or the employee is the sole 

owner of property not involving personal service (e.g., bank deposits, stocks and 

bonds, real estate investment, etc.), the income is his. If the property is owned 

jointly, allocate the income equally to the joint owners. Do not attempt to allocate 

the income from property on any other basis.

Do not look behind the legal title unless the issue is raised. If it is alleged that the 

"property," although jointly owned, was acquired through the efforts of only one 

person, consider all the income as that person's if the facts support such a 

finding.

B. Operation of Business - Income from properties such as farms, boarding houses, 

or other business enterprises involving the use of real or personal property is 

derived principally from the operation of a business and only in a small part from 

the use of the property. If the applicant or employee has income from such a 

source, assume, in the absence of information to the contrary, that he is 

operating a business. In such case, all the net income from the operation of the 

business is his income. When the applicant and the employee are joint owners, 

assume they are joint operators of the business and allocate the net income from 

such self-employment equally to both. Generally, allegations of partnership made 

in connection with a claim or inquiry are acceptable. If income is derived from a 
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 17 of 41

partnership, allocate such income in accordance with the terms of the partnership 

agreement.

When the applicant is the sole operator of a business in which the employee or 

another person performs substantial work, the applicant's net income is reduced 

by the corresponding cash value that such work produces. (See sec. 4.7.75.)

4.7.54 Rental Property Income

To determine the net income from rental property, first determine the gross income from 

the property and then deduct all regular expenses. Regular expenses include fuel, 

water, electricity, gas, taxes, mortgage payments, interest on mortgage, repairs 

(including improvements), labor costs, etc. Do not deduct accelerated mortgage 

payments or depreciation. Accelerated mortgage payments do not constitute a regular 

expense since they are not essential to the maintenance or retention of the property. 

Depreciation is not deductible because it is not an out-of-pocket expense and money is 

still available for support.

When the applicant and/or the employee did a substantial amount of work which has 

some bearing on the net income from the property (e.g., janitorial services in multipleunit buildings), determine the value of the work and allocate it on the basis of the 

percentage of work done. (The cash value of work is what it would cost to hire similar 

labor to do similar tasks in the same length of time.) When little or no work is needed to 

produce income, i.e., the work has no material bearing on the amount of net income, 

disregard the work. Do not undertake development of work unless substantial work is 

alleged. 

4.7.55 Farming Operations Income

A. General - Farm income has two sources, produce sold and produce consumed. 

Produce includes crops, poultry, cattle, hogs, dairy products, eggs, etc. Many 

farms also have vegetable gardens the produce of which may constitute a 

material source of support.

Frequently and especially in rural areas there will be a garden even though no 

actual farming operations are involved. In these cases, the produce is generally 

eaten rather than sold. Since the produce may be a material source of support, 

determine the value of such produce used or sold.

B. Farm Produce Sold - To determine the net value of farm produce sold, deduct 

the direct expenses from the gross sales. Gross sales are derived from the 

applicant's statement showing the farm produce sold, the quantity, and the price 

received. Also have the applicant itemize all the direct expenses (s)he incurred in 

producing the farm products, e.g., hired labor, fertilizer, seed, stock feed, etc. 

When the farm was leased rather than owner-operated, the rent is a deductible 

item. Taxes, insurance, mortgage payments, and interest on mortgage are also 

deductible.
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C. Farm Produce Used - Have the applicant show each farm product raised and 

used, the quantity, and what it would have sold for. Also, have the applicant list 

his direct expenses. Determine the net value of the produce used by deducting 

the direct expenses from the estimated gross value.

D. Farm Subsidy Programs - There are a number of farm subsidy programs which 

provide the farmer with subsidies in various forms. The nature of these subsidies 

may change from year to year and may differ in various localities. Have the 

applicant state whether (s)he is a recipient under a farm subsidy program and if 

so to what extent.

4.7.56 Proceeds From Sales Of Assets, And Funds From Insurance 

Policies

Unless there is evidence to the contrary, consider such proceeds and funds as income 

and use them in the support computation. If the proceeds and funds are not used for 

support, do not consider them when determining support.

4.7.57 Alimony Payments

Alimony payments received from any source are considered as income and must be 

included in the support computation.

4.7.65 Allowances And Allotments To Dependents Of Servicemen

A. Allowances - A dependency allowance may be payable to the spouse, child or 

parent of an enlisted serviceman. Such an allowance includes money deducted 

from the pay of serviceman plus money contributed by the government; it varies 

depending upon the enlisted man's grade. It may also vary in accordance with 

the wishes of the serviceman when two or more classes of dependents are 

involved, e.g., spouse and parent.

All of the allowance, including the government's contribution, is a contribution by 

the serviceman.

B. Allotments - An allotment is a deduction wholly from the serviceman's pay. Under 

Department of Defense regulations, all servicemen, including officers, may make 

allotments from their pay for their families or relatives; or for such other purposes 

as savings, insurance, etc. The serviceman can begin or end the allotment as he 

wishes. An allotment to the applicant is a contribution toward support.

C. Development of Allowances and Allotments - When an applicant alleges that the 

employee was contributing by means of an allowance or allotment, request the 

applicant to submit evidence showing the amount and beginning date of the 

payments. Preferred evidence in this case is a notice from the service 

Department as to the allowance or allotment. When it is not possible to secure 

pertinent facts upon which to base a determination, contact the applicable 
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department. However, if the applicant's other income is greater than the alleged 

contributions from the employee, such corroboration is not necessary.

4.7.66 Public Assistance Or Other Aid

Public assistance or other aid is income to the recipient in all cases. However, such 

income does not prevent the applicant's entitlement when it is initially received or 

increased after unfortunate circumstances forced a reduction or termination of the 

employee's contributions.

Old-age assistance is paid without any restrictions on its use by the recipient. When the 

employee receives such assistance, consider any part of it used by him (or his legal 

representative) to support another person as the employee's contributions to that other 

person's support. When the employee was acting as payee for an individual who 

qualified for the assistance, consider the payments as funds of the person qualified for 

the assistance.

A similar rule applies to payments by State agencies under assistance titles of the 

Social Security Act or under State or local laws when there is no restriction as to how 

the payment may be used. If there is a restriction, do not consider the payment the 

recipient's own funds unless it was based on his individual needs. If the support of other 

individuals was considered, the recipient is, in effect, acting as a payee on their behalf 

and any amounts used for the support of such individuals cannot be considered as a 

contribution by the recipient.

In any case in which the receipt of assistance would affect the support determination, 

forward the claim to the division of operations planning.

4.7.67 Federal Benefits

Monthly benefits paid under the RR Act and those of other Federal agencies are income 

to the applicant. Lump sums paid under the RR Act and those of other Federal agencies 

are also income to the applicant if used for the applicant's support.

4.7.75 Contributions As Income

A. General - A contribution to an applicant by the employee or some other person is 

income to the applicant. A contribution may be cash, in kind, or work done. A 

one-time cash contribution to the applicant received during the support period 

must be considered as income if the contribution was available for support 

(regardless of how the contribution was actually used).

B. Contribution in Kind - A gift or other one-time contribution in kind must be 

considered as income to the applicant if the contribution was available for 

support purposes and part of the regular contributions. The cash value of regular 

contributions in kind is the cost of the items if bought in the open market when 

the contributions are made. If depreciable assets are involved, do not prorate 
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 20 of 41

their cost from year to year. Treat their total cost as income in the support period 

if they constitute part of regular contributions; otherwise, exclude them from the 

support computation.

C. Contribution of Work - The cash value of work that the employee or other person 

does for the applicant or vice versa is what it would cost to hire similar labor to do 

similar tasks in the same length of time.

This rule applies to work for which labor would usually be hired, such as repairs 

or improvements in the home. It does not apply to routine household tasks 

ordinarily expected of members of the household; these tasks do not have a cash 

value in determining support.

Substantial work by the employee or another person on a farm or in a business 

operated by the applicant has a cash value corresponding to the amount of net 

income produced by the work. For example, when the employee or another 

person did 1/3 of the necessary work, 1/3 of the farm or business net income 

from personal services is his contribution to the applicant. Likewise, when the 

applicant performs services for the employee or another person on a farm or in a 

business, the cash value of such service constitutes income to the applicant. To 

this extent, deem the applicant to be providing his own support.

4.7.76 Room And Board

A. General - Consider the value of room and board furnished either to, or by, the 

applicant when determining the ratio of the employee's contributions to the 

applicant's support.

When the contributor is living with and receiving room and/or board from the 

applicant, the contributor's net contribution to the support of the household is his 

gross contribution minus the value of room and/or board. When one person in the 

household is paying room and/or board for another person in the same 

household, deduct the value of that person's room and/or board also.

B. Value of Room and Board - Develop and use the actual cost of room and board 

when:

• There is a written record of the items of such costs; or

• The applicant or person furnishing room and board can furnish a full 

itemization of such costs based upon personal knowledge or upon personal 

knowledge and records; or

• The existence of entitlement depends upon the amount of such costs; or

• It becomes necessary to compute the household expenses to determine the 

amount of contributions.
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In other cases, a reasonable estimate of costs can be used. However, to be 

acceptable, the estimate must be realistic taking into consideration the 

applicant's apparent standard of living as evidenced by the income received in 

the household as well as any partial cost records and other facts which the 

applicant or person furnishing room and board knows. When the applicant or 

person furnishing room and board has cost records or personal knowledge of 

only part, estimate the difference. When the full or partial estimate is not realistic, 

undertake complete development of the actual costs.

In the rare case in which a reasonable estimate cannot be secured and actual 

cost development is impossible, assume, in the absence of evidence to the 

contrary, that room and board (effective 1-1-85) is worth $170.10 a month. The 

value of the board only is $87.10 a month and of the room only $83.00 a month. 

Therefore, if one person occupies two rooms, the assumed value is $166.00 a 

month. If more than one person occupies a single room, divide the assumed 

value of the room by the number of people who occupy it. The assumed value of 

board would be added to this figure. (Do not use the assumed value in any case 

in which the applicant lives outside the continental limits of the U.S.)

For support periods ending in 1984, the assumed value of room and board is 

$146.45 a month ($77.95 for board and $67.50 for room); for 1982 and 1983, it is 

$128.50 ($74.20 for board and $54.30 for room); for 1979 through 1981, it is 

$96.00 ($54.00 for board and $42.00 for room); for 1972 through 1978, it is 

$50.00 ($37.50 for board and $12.50 for room); for 1968 through 1971, it is 

$40.00 (30.00 for board and $10.00 for room); and for 1952 through 1967, the 

figure is $30.00 ($22.50 for board and $7.50 for room). For support periods 

ending before 1952, the assumed value of room and board is $15.00 a month 

($11.25 for board and $3.75 for room.

C. Computing Actual Cost of Room and Board - Find out all the household 

expenses and prorate that total equally among members of the household. For 

the purpose of computing room and board when boarding house activities are not 

involved, household expenses include only the regular expenses for maintaining 

the household. These include expenditures for food, utilities, fuel, rent, water, 

insurance, mortgage payments, interest on mortgage, and any other 

expenditures recurring at annual or more frequent intervals.

However, regular expenses do not include extraordinary expenditures for repairs,

improvements, furniture, or other household equipment. The reason for excluding 

these items when boarding house activities are not involved is that they normally 

are not considered when fixing the amount to be paid.

4.7.77 Room And Board Provided The Applicant By The Employee

When the employee provides the applicant's room and board, deem the applicant to be 

receiving at least one-half support from the employee if (s)he does not receive income 

from sources amounting to more than $170.10 a month for periods ending after 1984. 
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 22 of 41

(The monthly income limit for periods ending in 1984 is $145.45; for periods ending in 

1982 and 1983, $128.50; for periods ending in 1979-1981, $96.00; for periods in 1972-

1978, $50.00). Do not, however, use this rule to defeat a finding of one-half support.

4.7.78 Housing

A. House Provided to the Applicant - When the applicant occupies rent-free a house 

provided by the employee or some other person, consider the fair rental value as 

income to the applicant if the contributor owns the property and pays the 

maintenance costs. (Maintenance costs do not include ordinary utilities.) When 

the amount established as the rental value is in excess of 1/4 of the applicant's 

other income, decrease the rental value to 1/4 of such other income or to the 

actual maintenance costs of the house, whichever is greater. (The reason for this 

is that an amount equal to 1/4 of the family income is usually allotted for 

housing.) When the applicant pays the maintenance costs, follow the 

instructions in B below.

When the contributor actually pays the rent for the housing, the amount of such 

rent is his contribution.

B. Home Owned by Applicant - No income is attributable to the applicant by reason 

of his occupancy of a single unit dwelling (s)he owns since ordinarily the 

expenses of maintenance equal the fair rental value of such dwelling. However, if 

the dwelling contains other units from which actual income is received, follow the 

instructions in sec.4.7.54.

4.7.79 Payments Under Reimbursement Agreement

Payments made to the applicant by someone other than the employee with an 

agreement that the employee will reimburse him are contributions by the employee.

To establish these contributions, obtain affidavits from persons who know the facts 

showing that:

• The employee actually reimburses the contributor; or

• The employee gave security out of which reimbursement could be had; or

• The employee's estate reimbursed the contributor; or

• The contributions are a loan on the employee's credit.

4.7.80 Special Support Rules - Grandchildren

A grandchild or step-grandchild as defined in RCM sections 4.4.85 and 4.4.86, may 

qualify for benefits or qualify the employee's wife for benefits effective 1-01-73. Effective 

May 1, 1983, a grandchild or step-grandchild may also qualify a male spouse for 
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 23 of 41

benefits. In addition to meeting the relationship requirements, except for a grandchild 

adopted by an RIB or DIB beneficiary (see section 4.7.81), the grandchild or stepgrandchild must meet the dependency requirements as outlined in sections 4.7.1ff and 

fulfill the requirements in A or B below:

A. The child's natural or adoptive parents must be either deceased or disabled:

1. In the month in which the employee met the conditions for entitlement to 

an RIB under the SS Act, or died; or

2. In the month in which the employee's period of disability (DF) began which 

continued until he met the conditions for entitlement to an RIB or DIB or 

until his death.

See RCM Chapters 1.1. and 1.2. for conditions for entitlement to an RIB or DIB 

under the SS Act.

B. The child was legally adopted anytime after the employee died, by the 

employee's surviving spouse in an adoption decree by a court of competent 

jurisdiction within the U.S. (including Puerto Rico, the Virgin Islands, Guam, and 

American Samoa) and the child's natural or adopting parent or stepparent was 

not living in the employee's household and making regular contributions.

A grandchild who meets these requirements qualifies for monthly benefits 

effective with the month of the employee's death if the adoption was within two 

years of the employee's death, or if the adoption was more than two years after 

the employee's death, monthly benefits are payable no earlier than January 1, 

1973. If the grandchild was adopted after 1973, monthly benefits are payable 12

months retroactive from the month of adoption. If the child was adopted before 

1973, monthly benefits are payable effective with:

• The month the employee died if the child was adopted within 2 years of the 

employee's death, or

• January 1, 1973, or later, if the child was adopted more than two years after 

the employee died.

The dependency requirement outlined in sec. 4.7.82 can only be met at the time 

of the employee's death. A child who fails to meet these requirements may still 

qualify as a legally adopted child. See RCM sec.4.4.26.

4.7.81 Requirements For Eligibility Of Grandchild Adopted By RIB Or 

DIB Beneficiary

An adopted grandchild of the employee or his spouse who does not meet the 

dependency requirements for any one of the one-year periods shown in RCM section 

1.5.24 may still be eligible to be included in the O/M or make the employee's spouse 
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 24 of 41

eligible to be included in the O/M if the adoption was by an RIB or DIB beneficiary and 

the dependency requirements in RCM section 1.5.24 are met for the one-year period 

immediately prior to the month in which the child's application is filed.

The development required to establish a grandchild relationship as outlined in RCM 

section 4.4.88 applies except that a step-grandchild of the employee or spouse (who is 

not the grandchild of the other) does not qualify under this provision. See RCM section 

4.4.86.

The alternative dependency test for grandchildren does not affect cases where the child 

is adopted after the employee's death by his surviving spouse.

The alternative period of dependency test for a grandchild is effective for benefits 

payable beginning August 1, 1973 based on an application filed in July 1973 or later.

For a grandchild adopted by an RIB or DIB beneficiary under the alternative time 

requirement for dependency, the child must meet all of the following requirements:

• He must not be a step-grandchild, as defined in RCM sec, 4.4.86; and

• He must have been legally adopted by the employee in an adoption decreed by a 

court of competent jurisdiction in the U.S. (including Puerto Rico, the Virgin Islands, 

Guam and American Samoa); and

• He must not have attained the age of 18 before he began living with the employee; 

and

• He must have been both living with the employee in the U.S. (including Puerto Rico, 

the Virgin Islands, Guam, and American Samoa) and receiving one-half support from 

the employee for the entire one-year period immediately before the month in which 

the child's application is filed.

An adopted child born during the one-year period is deemed to meet the living with and 

one-half support requirement if he lived with and received at least one-half support from 

the employee for substantially all of the period from the date of his birth to the month in 

which the child's application is filed.

"Living-with" and one-half support as detailed in sec. 4.7.82b are applicable to the oneyear period immediately before the month in which the child's application is filed.

Unlike the grandchild definition and dependency requirements in secs.4.7.80 and 

4.7.82, respectively:

• There are no conditions requiring the grandchild's parents to be either deceased or 

disabled; and

• There are no conditions regarding partial support by the grandchild's parent who 

lives in the same household. Of course, if the grandchild's parent is contributing one-
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RCM 4.7 Dependency, Support and Care Revised Dec 17, 2014 Page 25 of 41

half support, or more, then the grandchild could not be dependent upon the 

employee.

4.7.82 Grandchild Dependency Requirements

A. General - In addition to meeting the relationship requirements in RCM sections. 

4.4.87ff, the grandchild must also have been dependent on the employee. Note 

that the child must have the necessary relationship to the employee at the time 

used for establishing dependency.

• Begun living with the employee before he or she attained age 18; and

• Lived with the employee in the U.S. throughout the year specified in B below; 

and

• Received at least one-half support from the employee throughout that same 

year.

B. Time Requirement - Living With and One-Half Support - The grandchild must 

have been living with and receiving one-half support from the employee for the 

entire year before:

1. The month in which the employee met the conditions for entitlement to an 

DIB under the SS Act or the month in which the employee died; or

2. The month in which the employee's period of disability began which 

continued until he met the conditions for entitlement to an RIB or DIB 

under the SS Act, or until his death; or

3. In the case of a grandchild adopted by an RIB or DIB beneficiary only, the 

month before the application is filed for the child.

The periods of time above represent alternative points for meeting the living with 

and support requirements. For example, if living with and one-half support are 

not met in the month of the employee's entitlement to a DIB, the requirements 

may be met in the future at one of the other designated points in time. However, 

benefits cannot be paid until the dependency test is met.

A grandchild born during this one-year period is deemed to meet the living with 

and one-half support requirements if he lived with the employee in the U.S. and

he received at least one-half support from the employee for substantially all of 

the period from the date of his birth to the month indicated in 1,2, or 3 above.

When a surviving child qualifies because he or she was legally adopted by the 

employee's surviving spouse after the employee's death, the child does not have 

the status of child prior to the employee's death. Therefore, dependency for such 

a child can only be established by using the 12-month period preceding the 

employee's death or the time between the child's birth and the employee's death, 
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if shorter. (The child for whom "grandchild dependency" cannot be established 

may still qualify as a legally adopted child. See RCM sec. 4.4.26.)

The child is considered to have been receiving at least one-half support from the 

employee for the year before the applicable time if the employee made 

contributions in cash or kind to the child's support in each of the 12 months 

preceding the applicable time and the total of such contributions over the entire 

12-month period equaled or exceeded one-half of the child's support for the year. 

If the employee contributed an amount which was intended as support for more 

than one month, he would be considered to be contributing to the child's support 

for each month covered by the amount of the contribution. An annual installment 

which is understood by all to be necessary support for the year would be 

considered as a contribution for each month of the year. Also, where the 

employee has been contributing over a period of time and there is a break of one 

month in his contributions during the year, he can be considered to have 

contributed "continuously" throughout the year.

C. No Natural or Adopting Parent Living With and Contributing to the Support of the 

Child - In cases involving adoption of a grandchild or step-grandchild by the 

deceased employee's surviving spouse, the grandchild, in addition to meeting the 

relationship tests in RCM sec.4.4.85, must not have been receiving regular 

contributions towards his support from his natural or adopting parent or 

stepparent who was living in the employee's household at the time the employee 

died. The parent must have been both contributing to the support of the child and

living in the employee's household for benefits to be precluded. A parent who is 

living in the employee's household but not contributing to the child's support will 

not bar the child's entitlement. Likewise, regular contributions from a parent not 

living in the employee's household will not bar the child's entitlement. However, 

such contributions must be considered in determining whether the child was 

receiving at least one-half of his support from the employee.

The definition of "living with" and "contributions to support" contained in RCM 

sections. 4.7.16 and 4.7.17, respectively, are applicable to this provision. The 

grandchild, or person filing on his behalf should complete a statement concerning 

whether or not either of the child's natural or adoptive parents or stepparents 

were living with the employee and making regular contributions towards the 

child's support at the time the employee died.

• If the applicant alleges that either of the child's parents were living with the 

employee and making regular contributions towards the child's support and 

there is no evidence to the contrary in file, the allegation may be accepted 

and the claim denied.

• If the applicant alleges that a parent was not living with the employee at the 

time of the employee's death and there was no evidence to the contrary, this 

allegation may also be accepted. However, contributions from that parent 
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should be developed if alleged because these contributions will have a 

bearing on the one-half support dependency requirement.

• If the applicant alleges that one or both of the child's parents was living with 

the employee at the time of the employee's death but that parent was not 

contributing towards the support of the child, the support issue must be fully 

developed and the reason for the parent's non-support should be determined. 

This development should be done at the time you are developing the one-half 

support requirement to establish the grandchild's dependency.

4.7.83 Development Of Proof Of Death Or Disability Or Grandchild's 

Natural Or Adopting Parents

In all cases except those in which a grandchild could qualify as an employee's adopted 

child, the grandchild's parents must be either deceased or disabled. In the applicable 

cases, when the death or disability or the grandchild's natural or adopting parent cannot 

be proved, the claim for the grandchild must be denied. The natural or adopting parents 

will generally be identified in the evidence obtained.

A. Proof of Death

1. Natural Child of Employee's or Spouse's Daughter - The natural mother's 

death must be established. If the evidence establishes the identity of the 

child's natural father, his death must also be established. Otherwise, an 

attempt must be made to ascertain his identity through contact with the 

person filing on behalf of the child, the employee or his spouse, or any 

other readily available person who might reasonably be expected to have 

that knowledge. In addition, other possible sources of evidence (such as 

hospital, church, court or school records) should be checked. All efforts to 

identify the natural father should be documented and submitted for the file. 

If the child's father cannot be identified from any of the sources, assume 

he was deceased at the applicable time. If the child's father is identified 

but his whereabouts are unknown or, for any reason, proof of death 

cannot be obtained, an assumption cannot be made that the father is 

deceased, except where death can be presumed. Use RCM sections, 

4.5.21 through 4.5.26 as a guide.

Before denying the claim for the grandchild, determine the child's identified 

father's SS AN and teletype SSA's BDP to determine whether that parent 

has earnings posted for a quarter after the quarter in which:

• The employee died; or

• The employee became entitled to an annuity under the O/M; or

• The employee became disabled as defined by the SS Act and such 

period of disability ended in retirement of death.
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If there are earnings posted or if the child's identified father died after any 

of the above events occurred, the claim for the grandchild can be denied.

If there are no earnings posted, ask SSA's BDP to identify the last known 

employer as the first step in locating the person identified as the 

employee's grandchild's father.

2. Natural Child of Employee's Spouse's Son - The natural father's death 

must be established. In addition, there should be no difficulty in identifying 

the child's natural mother since this information is almost always shown on 

the child's birth certificate. If this document is not available, the identity of 

the child's mother should be established following the same general 

guidelines for identifying the natural father in 1 above.

3. Legally Adopted Child of Employee or Employee's Spouse's Son or 

Daughter - The death of both adopting parents must be established. If 

neither adopting parent is also the child's natural parent, it is not material 

whether the child's natural parents are deceased. If one parent adopted 

his spouse's natural child, the death or both the adopting parent and the 

natural parent must be established. In the rare case in which an individual 

alone adopted the child without being joined by his spouse, if any, in the 

adoption, only the death of the adopting parent need be established.

4. Stepchild of Employee or Employee's Spouse's Son or Daughter - The 

stepparent need not be deceased. The evidence must identify the natural 

or adopting parent to whom the employee or employee's spouse's child 

was married, and the death of that parent must be established. In addition, 

the death of the child's other natural or adopting parent (if any) must also 

be established if this person is identified by the evidence in file. An attempt 

must be made to ascertain the other parent's identity and death following 

the same procedure outlined in 1 above. If reasonable efforts fail to 

identify the child's other parent, assume he or she was deceased at the 

applicable time.

B. Proof of Disability - The grandchild's parent must have been disabled within the 

meaning of the SS Act as of the month in which:

• The employee met the conditions for entitlement to an RIB or DIB under the 

SS Act; or

• The employee began a period of disability which continued until he met the 

conditions for entitlement to an RIB or DIB under the SS Act or until his death; 

or

• The employee died.
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1. When Disability Under the SS Act Has Been Established - If disability is 

alleged and SSA is paying a DIB to the grandchild's parent, a copy of the 

award letter or similar evidence of SSA's award will be sufficient proof of 

disability.

2. When Disability Under the SS Act Has Not Been Established - If disability 

is alleged and either no application for a DIB was ever filed, or SSA 

denied the DIB application for lack of insured status, the field will obtain:

• A statement from the grandchild's parent who claims to be disabled; 

and

• A letter or other report from the allegedly disabled person's personal 

physician; and

• Medical evidence used to support a disability claim at SSA, VA, 

Welfare, etc., when such can be obtained.

The examiner will route the case to DB where proof of the disability will be 

the G-325 (Disability Decision Sheet) marked "Disabled". If DB rates the 

grandchild's parent not disabled, deny the claim for the grandchild on that 

basis.

NOTE: If is possible for the grandchild's parent's disability to qualify him 

as a disable child annuitant if a survivor case, or IPI if a retirement case 

(i.e., disabled between 18-22). 

4.7.85 Special Support Rules - Divorced Woman

Prior to 10-5-72 a divorced woman (a divorced wife, surviving divorced wife, and 

surviving divorced mother) could be included in the O/M if she would qualify for a 

monthly benefit under the SS Act even though she was not eligible for an annuity under 

the RR Act. One condition of eligibility under the SS Act was that she received at least 

one-half of her total support from the employee.

Effective 10-5-72 a divorced woman cannot be initially included in the O/M. However, 

such individuals who are on the benefit payment rolls will continue to be included until 

the O/M is no longer applicable, the annuity of the employee or eligible survivor is 

terminated, or the person could no longer qualify for a benefit under the SS Act.

NOTE: A divorced spouse annuitant (male or female) can be included in the O/M 

effective 10-1-81 or later. No special support requirements must be met.

4.7.95 Child in Care

The 1981 Amendments changed the definition of "Child in Care." Under the 1981 

Amendments, "Child in Care" means that the mother or father first entitled 9-1-81 or 
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later based on a child in care exercises parental control and responsibility for the 

welfare and care of a child under age 16 or a mentally incompetent child age 16 or over, 

or performs personal services for a mentally competent child age 16 or over who is 

disabled. The applicant may be exercising parental responsibility or performing personal 

services either alone or jointly with a spouse or other household member. Prior to 9-1-

81, the age was 18.

For persons whose entitlement is based on a child in care and who were entitled to an 

annuity or entitled under the O/M in 8-81, there is a grace period of either 2 years from 

the date of enactment (8-81), or the child's attainment of age 18, whichever comes first. 

If the grace period applies, "child in care" will be based on the pre-1981 Amendment 

rules. Effective 9-83, all "Child in Care" determinations are based on age 16, regardless 

of when entitled.

EXCEPTION: In spouse or widow(er) annuity 1937 Act cases only, "Child in Care" is 

still based on age 18.

4.7.96 When "Child In Care" Is Required

"Child in Care" is an eligibility requirement for a wife or, effective 5-1-83, a husband 

under age 65 who applies for a full spouse annuity on the basis of a child of the 

employee. If is also a requirement for a spouse to be included in the computation of the 

employee's O/M on the basis of the employee's child.

"Child in Care" is an eligibility requirement for a widow(er) under age 60 who applies for 

a widow(er)'s current insurance annuity.

4.7.97 Parental Responsibility Defined

Parental control and responsibility over a child under age 16 or 18 or an incompetent 

child age 16 or over (or 18 or over) may be exercised directly when the applicant lives 

with the child.

When the applicant does not live with the child, parental control and responsibility may 

be exercised indirectly be giving instructions to the child's custodian and ensuring that 

those instructions are carried out. The applicant must supervise the child's activities, 

participate in important decisions about the child's physical and mental needs and

measurably control the child's upbringing and development. The fact that the applicant 

has not lost or relinquished the right to the child's care and custody and furnishes 

material support for the child is not sufficient. The applicant must influence the training 

and development of the child. Therefore, if the development and training of a mentally 

incompetent child who is not living with the applicant is exclusively controlled by the 

custodian, even though paid for by the applicant, the child is not in the applicant's care.

If a mentally competent child is age 16 or over (or 18 or over), the instructions on 

"parental responsibility" do not apply. This is because in the case of a mentally 

competent child, "parental responsibility" normally ceases at or about the time the child 
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attains age 16 or 18. Therefore, a finding that the claimant has a child in care based 

upon the exercise of parental responsibility while the child is under age 16 or 18, does 

not carry over when the child attains age 16 or 18. Instead, if the child is still entitled, 

determine whether the applicant has the child in care based on the performance of 

"personal services."

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular case.

4.7.98 Personal Services Defined

The personal service required for "child in care" when the mentally competent child is 

age 16 or over (or 18 or over) must be performed regularly and in addition to any routine 

household service which may be rendered for any adult member of the household. 

Thus, personal services are services of a special nature such as nursing care, feeding, 

or dressing. However, the concept of personal services is not necessarily limited to such 

actual physical or personal care. The direction or supervision of the activities of a 

mentally competent child who is unable to manage his own funds or is able to do so 

only with considerable help would constitute personal services. Also, when the 

applicant's presence is required by the nature of the child's disability, consider him or 

her to be performing personal services.

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular case.

NOTE: Review cases at the time of current handling in which a WCIA or wife's annuity 

was awarded before 6-1960 on the basis that she had a disabled child in care to 

determine whether or not personal services are being performed. If it is determined that 

the widow or wife cannot qualify under the personal services requirement, suspend the 

widow's or wife's annuity effective with the month such determination is made. Do not 

consider erroneous any payments made before the month in which the determination is 

made.

4.7.99 Applicant And Child Living Together Regularly

A. Child Under Age 16 or 18 or Mentally Incompetent - Assume that an applicant 

living with a child under age 16 or 18 or a mentally incompetent child of any age 

has the child in care (is exercising parental control and responsibility) for each 

month they live together. This includes the month they began or ended living 

together regularly, if they lived together for at least one full day of the beginning 

or ending month.

Do not assume that the child is in the applicant's care if there is evidence to the 

contrary or the applicant is mentally incompetent. Instead, obtain the applicant's 

statement about the exercise of parental control and responsibility. Obtain a 

statement from another person who lives in the household or has knowledge of 

the circumstances only if there is doubt on whether the applicant's statement is 

true.
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B. Disabled Mentally Competent Child - If the applicant regularly lives with a 

disabled mentally competent child age 16 or over (or 18 or over), the child is in 

the applicant's care only if the applicant performs personal services for the child 

as shown in Section 4.7.98. If it is established that the applicant has the child in 

care, the applicant is considered to have the child in care for the month they 

began or ended living together for at least one full day of such month.

Obtain a statement from the applicant and from the disabled adult child about the

nature and frequency of the personal services performed and whether and to 

what extent the applicant's presence is required because of the child's disability. 

If there is any question, obtain statements from another person who lives in the 

household or has knowledge of the circumstances.

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular 

case.

4.7.100 Applicant And Child Living Together Temporarily

A. Child Under Age 16 or 18 or Mentally Incompetent - When the applicant is 

temporarily living with a child who is under 16 or 18 or mentally incompetent, the 

child is in the applicant's care only if:

1. The child is in the applicant's care while they are apart (see Section 

4.7.101); or

2. The child is with the applicant for a period of at least 30 consecutive days 

(except where the child is in armed forces) and the applicant exercised 

parental control and responsibility. The child is considered to be in the 

applicant's care for the month the period began or ended if the child was in 

the applicant's care for at least one full day of such month.

The child is not in the applicant's care during periods they are living together 

when the child is on active duty status in the armed forces. This is true even if the 

child is in a period of furlough that exceeds 30 days.

See Section 4.7.99A for any necessary development action.

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular 

case.

B. Disabled Mentally Competent Child - If the applicant and disabled mentally 

competent child are only living together temporary, the applicant has the child in 

care only if he or she is performing personal services and the child is with the 

applicant for a period of at least 30 consecutive days. The child is in the care of 

the applicant for the month the 30-day period began or ended if the child was in 

his or her care for at least one full day of such month.

See Section 4.7.99B for necessary development action.
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4.7.101 Applicant And Child Not Living Together

A. Child In Care - If the applicant and minor or disabled child are not living together, 

the child is in the applicant's care only if:

1. The child customarily lives with the applicant; and

2. The child is in the applicant's care when they live together; and

3. The separation is expected to temporary (to end within 6 months from the 

date it began); or

4. The applicant is exercising parental control and responsibility (see 

Sections 4.7.97 and 4.7.103 - 4.7.108) for a child under age 16 or 18 or a 

mentally incompetent child age 16 or over (or 18 or over) while they are 

separated.

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular 

case.

B. Child Not In Care - An applicant does not have a child in care, even if the 

conditions shown above are met, if they are not living together and:

1. The applicant is mentally incompetent (regardless of whether or not(s)he 

is confined in an institution); or

2. A court order has removed the child from the applicant's custody and 

control (see Section 4.7.107); or

3. The child is in the armed forces; or

4. The applicant and his or her spouse are separated and the child is with 

the spouse; or

5. The child is under the jurisdiction of a court-appointed guardian other than 

the applicant; or

6. The applicant has relinquished the right to custody and control of the child 

to some other person or agency.

C. Development - In every case where the applicant and child are separated, 

regardless of the expected length of separation, obtain a statement of whether 

the applicant is exercising parental control and responsibility from the applicant 

and the person with whom the child is living. The statement should include the 

reason for the separation and, if it is temporary, the expected length of the 

separation and the date on which it will end.
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4.7.102 Six-Month Rule In Temporary Separations

If the separation is expected to end within 6 months from the date it began, the 

applicant may have a child in care as shown in Section 4.7.101. However, the applicant 

must send notice when the temporary separation ends. If payment depends upon the 

child being in the applicant's care, suspend the benefits at the end of the first 6 months 

separation unless a notice that the separation has ended is received. (When 

suspending such payments, use code "16" or "56"on Form G-96 (OCR). Code "45" or 

"53" should only be used when terminating the applicant because the child is no longer 

in care and custody.) If there is any doubt as to the truthfulness of the notification that 

the child has returned, make full investigation to determine if they are living together.

4.7.103 Child Away At School

When a child under age 16 or 18 is away at school, the applicant is exercising parental 

control and responsibility (the child is in his or her care) if:

• The applicant supervises the child's activities and participates in important decisions 

about the child's physical and mental needs. (Assume that this is being done in the 

usual boarding, military, or prep school situation in which the child is not under the 

exclusive control and jurisdiction of the school); and

• The child spends an annual vacation of 30 consecutive days or more with the 

applicant unless it is not feasible for the child to return home during vacation, or to 

remain with the applicant for that length of time, during vacation; and

• If the applicant is separated from his or her spouse, the school authorities look to the 

applicant when they have a question regarding the child. If the applicant has lost 

custody, the child is in his or her care only during the time the child spends a 

vacation with his or with her, if the vacation is at least 30 consecutive days.

See Section 4.7.95 to determine whether age 16 or 18 applies in a particular case.

4.7.104 Separation Due To Applicant's Employment

When a separation of more than six months is caused by the applicant's employment, 

the applicant has a child under 16 or 18 see Section 4.7.95) in care only if he or she:

• Supervises the child's activities; and

• Participates in the important decisions about the child's physical and mental needs; 

and

• Makes regular and substantial contributions to the child's support. (The amount of 

the contributions, which may be in cash or in kind, must be a material factor in the 

reasonable cost of the child's support.)
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4.7.105 Separation Caused By Physical Illness Or Disability

In some cases an applicant may be separated from a child under 16 or 18 (see Section 

4.7.95) due to the child's or the applicant's physical illness or physical disability (e.g., 

either one may be away at the hospital or nursing home). If the separation is expected 

to end within 6 months, the applicant has the child in care. If the separation is expected 

to last more than 6 months, the applicant is exercising parental control and 

responsibility (has the child in care) if the applicant supervises the child's activities and 

participates in the important decisions about the child's physical and mental needs.

4.7.106 Separation Due To Mental Incompetence

An applicant does not have a child in care during a period of separation caused by the 

applicant's mental incompetence.

4.7.107 Court Order Removing Child

When a separation results from a court order removing a child under age 16 or 18 (see 

Section 4.7.95) from the applicant's custody and control, the child is not in the 

applicant's care. For example, this applies if a juvenile court has placed the child in a 

reform school.

Secure a certified copy of the court order if the applicant alleges that the child is still 

under his or her control despite the separation.

If the court order removes the child from the applicant's custody and control, the child is 

not in his or her care. However, if the order merely removes a child from the custody but 

not from the control of the applicant and the applicant still exercises parental 

responsibility, the child is in his or her care.

4.7.108 Separation - Child Enrolled In Job Corps

Whether a child under age 16 or 18 (see Section 4.7.95) is in the applicant's care while 

in the Job Corps depends on whether the child is a resident or non-resident Job Corps 

enrollee.

A. Child Is Resident Job Corps Enrollee - When the child is a resident of a Job 

Corps center, the child is not considered to be living with the applicant while at 

the center. By signing the consent statement, the applicant has relinquished 

control and custody of the child to the Job Corps. Therefore, the child is not 

considered to be in the applicant's care while living at the Job Corps center.

If the child returns home during vacation periods, he or she may be found to be in 

the applicant's care if they are together for at least 30 consecutive days (see 

Section 4.7.100).
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B. Child Is Non-Resident Job Corps Enrollee - When the child is a non-resident Job 

Corps enrollee and returns home to the applicant either weekends or evenings, 

the child is in the applicant's care if, while the child is at home, the applicant 

exercises parental control and responsibility.

4.7.109 Posthumous Child In Widow's Care

When the child of the employee is born after the employee's death, deem the widow to 

have the child in her care when the child is born. If the child is born alive, the child may 

then become entitled to a CIA and the widow to a WCIA.

4.7.110 Child Adopted By Grandparent, Stepparent, Uncle, Aunt, 

Brother, Or Sister

Submit to the bureau of law any case in which the deceased employee's last child (upon 

whom a widow(er)'s entitlement to a WCIA exist) continues to live with the widow(er) 

after adoption by a grandparent, stepparent, uncle, aunt, brother, or sister. The reason 

for this is to determine whether the widow(er) may still be considered to have the child 

in care.

4.7.120 Child Care Drop-Out Years Provision 

The 1980 Social Security Act Disability Amendments provide for the crediting of dropout 

years based on child care in addition to dropout years computed under the 1 for 5 rule 

as explained in RCM Chapter 8.11.16 - 17.

Effective July 1, 1981 additional dropout years based on child care may be included in 

the computation of PIA's 1, 3, and 9 for disability annuitants under age 37 in the earlier 

of the year in which the annuity begins or the year of the disability onset and whose 

annuity beginning date or initial entitlement to the DIB O/M is July 1, 1980 or later.

• If the employee does not have a disability freeze his PIA #1 or PIA #3 may increase 

due to RR Act deeming provisions.

• If the employee does have a disability freeze his PIA #1, PIA #3, or PIA #9 may 

increase.

See RCM Chapter 8.11 for a detailed explanation of the 1980 Disability Amendments 

and how they affect PIA computations.

4.7.121 Definition Of Child Care Years

A child care year is a year, which has been selected as a benefit computation year (see 

Section 4.7.123), in which:

• The employee has no earnings; and
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• The employee was "living with" (per Section 4.7.16) the child substantially 

throughout that year; and

• The child was under age 3 in the year. The child must be the child of the employee 

or of the employee's spouse (as defined in RCM Chapter 4.4.5-89).

4.7.122 Definition Of "Substantially Throughout The Year

The employee will be considered to have been living with a child substantially 

throughout the year in which the child was alive and was under age 3, if they have been 

living together for a certain number of days in each calendar year.

• When a whole calendar year (i.e. 12 months) is being considered, the employee 

must have been living with the child for at least 9 months.

• When considering a partial calendar year (i.e., a year during which the child was 

born, attained age 3, or died), the period during which the child was not living with 

the employee cannot exceed 91 days or one-half of the period in question, 

whichever is less.

A summary of the required periods of "living with" for partial calendar years is shown 

below:

Length of Period from Child's DOB to End 

of Calendar Year, or From Beginning of 

Calendar Year Until Child Attains Age 3 or 

Died Before Attaining Age 3

Minimum Number of Days of " Living With" 

Required to Meet Test

183-365 days Length of period minus 91 days

1-182 One-half of days in period (round fractions 

up to higher number)

4.7.123 Developing Child Care Years With DP&A

A. Identifying Possible Cases - If the employee is a disability annuitant under age 37 

in the earlier of his or her ABD year or disability onset year, the RASI (see RCM 

Chapter 9.3.13) and TRIC (see RCM Chapter 7.4, Appendix A, G-90 Instruction) 

program will bring specific messages on the RASI award form and Form G-90 

indicating that the child care dropout provision may applicable. If the employee 

has indicated on his or her application that (s)he has any children (under age 18, 

disabled, or a student age 18 or older), develop possible child care years with 

DP&A as explained in B, below.
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If the employee is single or (s)he does not indicate any children on his or her 

application, do not develop for the child care year provision unless there is 

reason to believe the employee has a child under age 3 in any year after 1950.

B. Developing Eligible Child Care Dropout Years With DP&A - If A, above, applies, 

develop for possible child care dropout years as follows:

1. Retirement Cases - Check Form G-90 on the employee's SS account 

number for years with no earnings after the year the employee attains age 

21 but before the earlier of the ABD year of the year of the DF onset.

(a) 1 or More Years With No Earnings - If there are one or more years 

with no earnings in the period described in 1, above, send Form G563 to DP&A as explained in the instructions for that form in RCM 

Part 11. DP&A will determine if there are eligible computation years

(as explained in RCM Chapter 8.11.17).

If DP&A indicates that there are eligible computation years, develop 

with the field office as explained in Section 4.7.124.

If DP&A indicates that there are no eligible computation years, the 

child care dropout years provision does not apply. No further action 

is necessary in these cases.

(b) No Years with No Earnings - If there are no years with no earnings 

in the period described in 1, above, the child care dropout years 

provision does not apply. No further action is necessary in these 

cases.

2. Survivor Cases - The child care dropout provision does not affect the 

computation of a monthly survivor insurance annuity of a lump sum death 

payment. However, an accrued employee annuity may be due if creditable 

child care dropout years were not included in the employee annuity 

computation while (s)he was alive. In addition, the child care dropout 

provision may affect the amount of the residual lump sum if the 

employee's annuity rate was recomputed to apply the child care dropout 

year provision.

If the child care dropout message is printed on the survivor employee G90 and the claim folder indicates that the employee had a child under 3 in 

his/her care after 1950, handle the case as follows:

(a) Possible Employee Accrued Annuity - Review the claim folder to 

see if a child care dropout determination was made while the 

employee was alive. If it was previously determined that the child 

care dropout provision applied while the employee was alive but the 
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employee's annuity was not adjusted, follow the instructions in 

Section 4.7.126 to recompute the employee's annuity.

(b) Residual Lump Sum - When computing a residual lump sum, you 

must consider the effect that the child care dropout provision had 

on the employee annuity computation.

If the employee's PIA #1 used to compute the regular railroad 

formula annuity included child care dropout years, the PIA #3 used 

to compute the residual lump sum must also include the child care 

dropout years. If a computation of PIA #3 including child care 

dropout provision is not in file, request a recomputation of PIA #3 

including this provision as explained in RCM Part 11, G-563 

instructions.

If the employee's PIA #9 used to compute the O/M annuity included 

child care dropout years, deduct the net O/M payable from the 

residual lump sum, per normal procedure. No special computations 

are required to compute the residual lump sum for these cases.

4.7.124 Developing Child Care Years With Field Offices

If it appears that the child care dropout provision may apply as explained in Section 

4.7.120-123, send a memo to the applicable district office requesting the D/O to obtain 

the answers to the following questions from the employee (or the survivor beneficiary):

1. Was a child, either your own or your spouse's, living with you while the child was 

under age 3 ______. (The examiner should enter the eligible computation year 

indicated by DP&A on Form G-563, item 23.)

2. If yes, give the following information for each such child:

(a) Full name.

(b) Date of Birth.

(c) Relationship to you or your spouse.

(d) Of the year(s) shown in item 1, list the years in which the child was under 

age 3 and was living with you.

(e) Of the year(s) you listed in item 2(d), give the number of days in each year 

that the child lived with you.

3. Of the year(s) you listed in item 2(d), list each year in which you worked. If none, 

show none.
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The examiner should request the D/o to obtain this information on a signed and 

dated statement from the employee (or the survivor beneficiary) along with any 

necessary proof of age and proof of relationship for each child employee's 

spouse, also request proof of marriage of the employee to the spouse, if not 

already in file.

Advise the D/O that "living with" and no earnings allegations will be accepted 

without proof.

4.7.125 Determining Child Care Dropout Years

When the information requested in Section 4.7.124 is received from the D/O, determine 

if the child care dropout provision applies by comparing the employee's statement to the 

requirements explained in Sections 4.7.120-123. If all requirements are met and any of 

the years indicated by DP&A in item 23 of Form G-563 as eligible computation years 

are also indicated in by the employee as years in which (s)he was living with a child 

under age 3, send a second Form G-563 to DP&A as explained in item 6a of that form 

(see RCM Part 11, G-563 Instructions).

Credit the child care dropout year(s) as explained in Section 4.7.126.

If all the requirements are not met or the employee does not indicate any of the years 

DP&A has shown as eligible child care years, the child care dropout provision does not 

apply. Notify the D/O that no further action will be taken.

4.7.126 Crediting Child Care Dropout Years

If it is determined that the child care dropout provision applies as explained in Sections 

4.7.120-125, credit the years(s) by recertifying the annuity from the later of:

• The employee's ABD; or

• The DIB O/M entitlement date (if applicable); or

• July 1, 1981.

Include a short explanation of the reason for the increase in the RL-119 adjustment 

letter to the employee.

If the annuity rate is not affected or tolerance applies, notify Research according to 

RCM Chapter 9.4, G-59 Instructions

If the residual lump sum is payable, compute the RLS using the child care dropout 

provision as explained in Section 4.7.123 B 2 (b) under normal procedure.