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3301 Provisions of the Act

Section 2(c) of the Act provides, in part, that

"... For an employee who has ten or more years of service, who did not 

voluntarily retire and (in a case involving unemployment) did not voluntarily leave 

work without good cause, who has fourteen or more consecutive days of 

sickness, and who is not a "qualified employee" for the general benefit year 

current when such unemployment or sickness commences but is or becomes a 

"qualified employee for the next succeeding general benefit year, such 

succeeding benefit year shall, in his case, begin on the first day of the month in 

which such unemployment or sickness commences. Notwithstanding the other 

provisions of this subsection. in the case of a succeeding benefit year beginning 

in accordance with the next preceding sentence by reason of sickness, such 

sentence shall not operate to permit the payment of benefits in the period 

provided for in such sentence for any day of sickness beginning with the day on 

which age 65 is attained and continuing through the day preceding the first day of 

the next succeeding general benefit year. For purposes of this subsection.the 

Board may rely on evidence of age available in its records and files at the time 

determinations of age are made."

3302 Elements of the Provisions

3302.01 Qualified employee

The qualifying earnings requirements for accelerated benefits or beginning a year 

early are: (1) the claimant must not be a qualified employee for the current 

general benefit year when his or her individual benefit year is to begin, and (2) he 

or she must be, or become, a qualified employee for the next succeeding general 

benefit year.

3302.02 Fourteen consecutive days of unemployment

The 14 consecutive days of unemployment necessary for beginning a benefit 

year early may be in more than one registration period. The 14 days may occur 

before the claimant has become a qualified employee for the next succeeding 

general benefit year. The 14 consecutive days may not include days for which 

benefits were paid in an earlier benefit year. For example: a claimant's extended 

benefit period for BY-87 ends September 12, 1988; benefits are payable with 

respect to all days through September 12, 1988; the claimant is not qualified for 

BY-88 but is qualified for BY-89; September 12, 1988 and earlier days cannot be 

included as part of the 14 consecutive days of unemployment necessary for the 

purposes of establishing an early beginning of BY-89.
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3302.03 Years of service

For purposes of early beginning of benefit year, "years of service" are years of 

service as defined in Section 1(f) of the Railroad Retirement Act of 1974. Service 

includes service before 1937, as well as service subsequent to 1936; it includes 

service subsequent to the base year; it includes any military service which is 

creditable under the Railroad Retirement Act. (See AIM-19.) In accordance with 

section 1(f) of the Railroad Retirement Act, 12 months of service constitute a 

year of service. Thus, an employee who has 120 months of service is 

considered to have ten years of service. The 120th month of service must have 

occurred before the first day of the benefit year which is begun early.

3302.04 Beginning and ending date of benefit year

The first day of a benefit year which is begun early is the first day of the month 

containing the first of the 14 consecutive days of unemployment. For example: a 

claimant who is not qualified for BY-87 but is qualified for BY-88 who meets the 

14 consecutive days of unemployment requirement with the days February 29, 

1988 through March 13, 1988 can begin his or her accelerated benefit year with 

February 1, 1988, the first day of the month containing the first of the 14 

consecutive days of unemployment. The earliest possible beginning date of an 

accelerated benefit year is the July 1st preceding the beginning of the general 

benefit year. (BY-88 could not begin earlier than July 1, 1987. A benefit year 

which begins early ends at the same time as the general benefit year. For 

instance, if BY-88 is begun for an employee on February 1, 1988, it ends on June 

30, 1989, unless it is extended beyond that date as a result of the establishment 

of an extended benefit period.

3302.05 Voluntary leaving

a. In determining, for purposes of the early beginning of a benefit year, 

whether a leaving of work was "voluntary" and "without good cause", the 

principles established in connection with determinations under Section 

4(a-2)(i) of the Railroad Unemployment Insurance Act should be followed. 

See AIM-15.

b. Under some circumstances a voluntary leaving without good cause does 

not prevent the beginning of a benefit year early. Only a voluntary leaving 

which creates the need for beginning the benefit year early and which is 

reasonably related to the employee's unemployment at the time, affects 

his or her entitlement to an early beginning. When an employee has been 

paid compensation equal to 2.5 times the monthly compensation base for 

time after a voluntary leaving without good cause, it may generally be 

assumed that the voluntary leaving did not create the need for beginning 

the benefit year early.
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c. A voluntary leaving without good cause which occurs after the employee's 

acquisition of ten years of service and after the 14 consecutive days of 

unemployment does not prevent an early beginning of a benefit year and 

does not terminate the year. Under the provisions of section 4(a-2)(i) of 

the Act, however, no day beginning with the date of the voluntary leaving, 

and continuing until the employee has been paid creditable compensation 

of 2.5 times the monthly compensation base with respect to time after the 

date of the voluntary leaving, can be a day of unemployment.

3302.06 Voluntary retirement

a. In determining, for purposes of the early beginning of a benefit year, 

whether an employee has voluntarily retired, principles established on that 

point in connection with determinations as to availability for work should 

be followed. See AIM-8. In accordance with those principles, application 

for a retirement annuity is not in itself to be considered as conclusive 

evidence of voluntary retirement. Consideration must be given to any 

action of the employee tending to limit his or access to the labor market.

b. If an employee is found to have voluntarily retired, the date of retirement 

shall be considered to be the date on which the individual took action 

showing that he or she was out of the labor market. In many cases this 

will be the date on which the employee applied for the annuity or 

relinquished rights to return to service.

c. Voluntary retirement occurring after the employee's acquisition of ten 

years of service and after the 14 consecutive days of unemployment does 

not prevent an early beginning of a benefit year and does not terminate 

the year. In such case, the employee may receive benefits for days 

before the date of retirement, provided that he or she is available for work 

and meets the other requirements of the Act. Benefits for days on or after 

the date of retirement will not ordinarily be payable since the employee 

ordinarily cannot meet the availability requirement.

3302.07 Effect on sickness benefits

A benefit year which begins early for the purpose of paying unemployment 

benefits also begins early for sickness benefit purposes. The early beginning 

does not affect or limit the amount of normal sickness benefits payable in the 

benefit year; the limit remains 130 days or benefits equal to the base year wages.

3302.08 Relation to extended benefit periods

A benefit year should not begin early for an employee until after the end of any 

extended unemployment or sickness benefit period to which he is entitled as a 

result of exhaustion of rights to normal benefits in an earlier general benefit year. 

If rights to normal benefits are exhausted in a benefit year which was begun 
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early, an extended benefit period may be established if the usual requirements 

are met.

3302.09 Creditable earnings after early beginning date

Creditable base year wages earned after a benefit year has been begun early 

are to be taken into account in determining the claimant's daily benefit rate and 

the maximum amount of benefits payable, and any necessary adjustments are to 

be made periodically.

3302.10 Registration periods

Registration periods for normal unemployment benefits in a benefit year which is 

begun early are established according to provisions of the Act and regulations 

respecting registration periods for unemployment benefits. A registration period 

in a benefit year which is begun early may begin with a day earlier than the first 

of the 14 consecutive days of unemployment on the basis of which the benefit 

year was begun early. The fact that a day is earlier than the first of the 14 

consecutive days does not prevent it from being a day of unemployment. 

Registration periods for sickness benefits in a benefit year which is begun early 

for the purpose of paying unemployment benefits are established according to 

provisions of the Act and of the regulations respecting registration periods for 

sickness benefits. Such a registration period may begin with a day earlier than 

the first of the 14 consecutive days of unemployment on the basis of which the

benefit year was begun early.

3303 Determining Entitlement to Early Beginning of the Benefit 

Year

3303.01 Authority to make determination

The division of program operations is authorized to make determinations as to 

the early beginning of a benefit year for the purpose of paying unemployment 

benefits. Some of the points to be considered when making accelerated benefit 

year determinations are discussed below.

3303.02 Years of service

The number of years of service show in the Board's records shall be accepted as 

correct unless the claimant has indicated that he has ten years of service and the 

records shows less than that. If there is such an indication that the claimant may 

have more service than is shown on the wage record, the additional service 

should be developed in accordance with instructions in AIM-19.
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3303.03 Qualifying wages

To determine whether a claimant is a qualified employee for the next succeeding 

general benefit year, a record of "lag service" and compensation is to be 

obtained in accordance with instructions in AIM-19. If it is initially determined that 

the employee is not qualified for the next succeeding general benefit year but he 

or she later earns enough to qualify for the next succeeding general benefit year, 

the benefit year may begin with the first of the month in which the employee's 14 

or more consecutive days of unemployment began.

3303.04 Voluntary retirement - voluntary leaving

No special inquiry is needed generally because the field office would have denied 

claims if the claimant had voluntarily retired or voluntarily left work without good 

cause. However, if there is doubt on either point, an investigation should be 

made.

3304 Notice to Claimant

A notice of the determination that a benefit year cannot be begun early should be

sent to the claimant, showing why the benefit year cannot be begun early, in 

each case in which benefits are denied on the basis of such a determination. 

The letter should contain the claimant's review and appeal rights.

3305 Additional Base Year Earnings

3305.01 Tentative determinations

If the report of base year wages used to establish the early beginning of a benefit 

year was completed before the end of the base year and the base year earnings 

on record are less than the maximum amount of normal benefits for a benefit 

year, the determination should be considered as tentative. The daily benefit rate 

shall also be considered tentative if based on a pay rate report completed before 

the end of the base year.

3305.02 Review of tentative determinations

When a determination is tentative, as described above, it should be reviewed 

shortly after the end of the calendar year. If the claimant may have had 

additional creditable service in the base year, he or she should be given an 

opportunity to claim it by sending him or her Form Letter ID-33e (Exhibit F). In 

any case in which the claimant's reply to Form Letter ID-33e or information in the 

file indicates that the claimant was not in covered employment in the base year 

subsequent to the employment which had been previously reported when the 

initial determination of benefit rights was made consider the tentative 

determinations as final.
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3306 Form Letters Prescribed

ID-33 (9-88) ID-33c (9-88)

ID-33a (9-88) ID-33d (9-88)

ID-33b (9-88) ID-33e (9-88)

3321 Provisions of the Act

Section 2(c) of the Act provides, in part, that

"...For an employee who has ten or more years of service, who did not voluntarily 

retire and (in a case involving unemployment) did not voluntarily leave work 

without good cause, who has fourteen or more consecutive days of 

unemployment or fourteen or more consecutive days of sickness, and who is not 

a 'qualified employee' for the general benefit year current when such 

unemployment or sickness commences but is or becomes a 'qualified employee' 

for the next succeeding general benefit year, such succeeding benefit year shall, 

in his case, begin on the first day of the month in which such unemployment or 

sickness commences. Notwithstanding the other provisions of this 

subsection...in the case of a succeeding benefit year beginning in accordance 

with the next preceding sentence by reason of sickness, such sentence shall not 

operate to permit the payment of benefits in the period provided for in such 

sentence for any day of sickness beginning with the day on which age 65 is 

attained and continuing through the day preceding the first day of the next 

succeeding general benefit year. For purposes of this subsection...the Board 

may rely on evidence of age available in its records and files at the time 

determinations of age are made."

3322 Elements of the Provisions

3322.01 Qualified employee

The qualifying earnings requirements for accelerated benefits or beginning a year 

early are: (1) the claimant must not be a qualified employee for the current 

general benefit year when his or her individual benefit year is to begin, and (2) he 

or she must be, or become, a qualified employee for the next succeeding general 

benefit year.

3322.02 Fourteen consecutive days of sickness

The 14 consecutive days of sickness necessary for beginning a benefit year early 

may be in more than one registration period. The 14 days may occur before the 

claimant has become a qualified employee for the next succeeding general 

benefit year.

The 14 consecutive days may not include days for which benefits were paid in an 

earlier benefit year. For example: a claimant's extended benefit year period for 
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BY-87 ends September 12, 1988; benefits are payable with respect to all days 

through September 12, 1988; the claimant is not qualified for BY-88 but is 

qualified for BY-89; September 12, 1988 and earlier days cannot be included as 

part of the 14 consecutive days of sickness necessary for the purposes of 

establishing an early beginning of BY-89.

3322.03 Years of service

For purposes of early beginning of benefit year, "years of service" are years of 

service as defined in Section 1(f) of the Railroad Retirement Act of 1974. Service 

includes service before 1937, as well as service subsequent to 1936; it includes 

service subsequent to the base year; it includes any military service which is 

creditable under the Railroad Retirement Act. See AIM-19. In accordance with 

Section 1(f) of the Railroad Retirement Act, 12 months of service constitute a 

year of service. Thus, an employee who has 120 months of service is 

considered to have ten years of service. The 120th month of service must have 

occurred before the first day of the benefit year which is begun early.

3322.04 Beginning and ending date of benefit year

The first day of a benefit year which is begun early is the first day of the month 

containing the first of the 14 consecutive days of sickness. For example: a 

claimant who is not qualified for BY-87 but is qualified for BY-88 who meets the 

14 consecutive days of sickness requirement with the days February 29, 1988 

through March 13, 1988 can begin his or her accelerated benefit year with 

February 1, 1988, the first day of the month containing the first of the 14 

consecutive days of sickness. The earliest possible beginning date of an 

accelerated benefit year is the July 1st preceding the beginning of the general 

benefit year. (BY-88 could not begin earlier than July 1, 1987.) A benefit year 

that begins early ends at the same time as the general benefit year. For 

instance, if BY-88 is begun for an employee on February 1, 1988 it ends on June 

30, 1989, unless it is extended beyond that date as a result of the establishment 

of an extended benefit period.

3322.05 Voluntary retirement

a. In determining, for purposes of the early beginning of a benefit year, 

whether an employee has voluntarily retired, principles established on that 

point in connection with determinations as to availability for work should 

be followed. See AIM-8. In accordance with those principles, application 

for a retirement annuity is not in itself to be considered as conclusive 

evidence of voluntary retirement. Consideration must be given to any 

action of the employee tending to limit his or her access to the labor 

market.

b. If an employee is found to have voluntarily retired, the date of the 

retirement shall be considered to be the date on which the individual took 
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action showing that he or she was out of the labor market. In many cases 

this will be the date on which the employee applied for the annuity or 

relinquished rights to return to service.

c. Voluntary retirement occurring after the employee's acquisition of ten 

years of service and after the 14 consecutive days of sickness does not 

prevent an early beginning of a benefit year and does not terminate the 

year.

3322.06 Effect on unemployment benefits

A benefit year which begins early for the purpose of paying sickness benefits 

also begins early for unemployment benefit purposes. The early beginning does 

not affect or limit the amount of normal unemployment benefits payable in the 

benefit year; the limit remains 130 days or benefits equal to the base year wages.

3322.07 Relation to extended benefit periods

A benefit year should not be begun early for an employee until after the end of 

any extended unemployment or sickness benefit period to which the employee is 

entitled as a result of exhaustion of rights to normal benefits in an earlier general 

benefit year. If rights to normal benefits are exhausted in a benefit year which 

was begun early, an extended benefit period may be established if the usual 

requirements are met.

3322.08 Creditable earnings after early beginning date

Creditable base year wages earned after a benefit year has been begun early 

are to be taken into account in determining the claimant's daily benefit rate and 

the maximum amount of benefits payable, and any necessary adjustments are to 

be made periodically.

3322.09 Registration periods

Registration periods for normal sickness benefits in a benefit year which is begun 

early are established according to provisions of the Act and regulations 

respecting registration periods for sickness benefits. A registration period in a 

benefit year which is begun early may begin with a day earlier than the first of the 

14 consecutive days of sickness on the basis of which the benefit year was 

begun early. The fact that a day is earlier than the first of the consecutive days 

does not prevent it from being a day of sickness. Registration periods for 

unemployment benefits in a benefit year which is begun early for the purpose of 

paying sickness benefits are established according to provisions of the Act and of 

the regulations respecting registration periods for unemployment benefits. Such 

a registration period may begin with a day earlier than the first of the 14 

consecutive days of sickness on the basis of which the benefit year was begun 

early.
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3322.10 Effect of attaining age 65

If a benefit year is begun early for the purpose of paying sickness benefits, and 

the employee attains age 65 before July 1 of the general benefit year, sickness 

benefits may not be paid for any day from the day on which the employee 

attained age 65 up to July 1, but unemployment benefits may be paid for days in 

the interim period. Sickness benefits may be paid from July 1 on. In this 

situation a statement of sickness is not deemed to have been filed with respect to 

any day from the day the employee attained age 65 up to July 1. The employee 

shall be advised of the denial of benefits by Form Letter ID-33k (Exhibit E). He 

shall be advised to file a new application and statement of sickness if he wishes 

to claim benefits beginning July 1. If a benefit year is begun early for the purpose 

of paying unemployment benefits, attainment of age 65 will have no effect on the 

employee's rights to normal sickness benefits in the accelerated benefit year.

Example 1. An employee has 14 consecutive days of sickness in February 

1988 and as a result, BY-88 is begun for him or her early on February 1, 1988. 

He attains 65 years on April 2, 1988; his birthday is April 3. BY-88 accelerated 

sickness benefits are payable through April 1, 1988, the day before the claimant 

attains age 65. Sickness benefits are not payable for the days April 2, 1988 

through June 30, 1988. However, they are payable from July 1, 1988 on.

Example 2. An employee has 14 consecutive days of unemployment in 

February 1988 and as a result, BY-88 is begun for him or her on February 1, 

1988. The claimant becomes sick on March 3, 1988 and normal BY-88 sickness 

benefits are paid beginning March 3. He or she is 65 years old on March 31, 

1988. But in this case attainment of age 65, even though occurring before the 

beginning of the general benefit year, does not stop the payment of sickness 

benefits because the benefit year was not begun early for the purpose of paying 

sickness benefits. 

3323 Determining Age 65

An employee attains age 65 on the day before his sixty-fifth birthday. Thus, an 

employee born on January 15, 1923 attains age 65 on January 14, 1988. For 

purposes of determining an employee's rights to benefits in an accelerated 

benefit year, the adjudicating office may rely on evidence of age in the Board's 

records and files at the time the determination is made. In the absence of fraud, 

a determination allowing the early beginning of a benefit year shall not be 

disturbed although based on evidence as to age later found to be incorrect. But 

no additional benefits may be paid on the basis of the incorrect evidence. In 

determining whether an employee has attained age 65 the adjudicating office 

shall consider the evidence of age in the wage and service records maintained 

by the bureau of compensation and certification.
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3324 Determining Entitlement to Early Beginning of the Benefit 

Year

3324.01 Authority to make determinations

The division of program operations is authorized to make determinations as to 

the early beginning of a benefit year for the purpose of paying sickness benefits. 

Some of the points to be considered when making accelerated benefit year 

determinations are discussed below.

3324.02 Years of service

The number of years of service shown in the Board's records shall be accepted 

as correct unless the claimant has indicated that he has ten years of service and 

the record shows less than that. If there is such an indication that the claimant 

may have more service than is shown on the wage record, the additional service 

should be developed in accordance with instructions in AIM-19.

3324.03 Qualifying wages

To determine whether a claimant is a qualified employee for the next succeeding 

general benefit year, a record of "lag service" and compensation is to be 

obtained in accordance with instructions in AIM-19. If it is initially determined that 

the employee is not qualified for the next succeeding general benefit year but he 

or she later earns enough to qualify for the next succeeding general benefit year, 

the benefit year may begin with the first of the month in which the employee's 14 

or more consecutive days of sickness began.

3324.04 Voluntary retirement

Investigation and determination as to whether the claimant retired voluntarily is 

necessary only if the claimant is over 60 years of age and there is a gap of a 

month or more between the last day he worked and the first day of infirmity or the 

claimant is receiving an annuity under the Railroad Retirement Act.

3325 Notice to Claimant

A notice of the determination that a benefit year cannot be begun early should be 

sent to the claimant, showing why the benefit year cannot be begun early, in 

each case in which benefits are denied on the basis of such a determination. 

The letter should contain the claimant's review and appeal rights.
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3326 Additional Base Year Earnings

3326.01 Tentative determinations

If the report of base year wages used to establish the early beginning of a benefit 

year was completed before the end of the base year and the base year earnings 

on record are less than the maximum amount of normal benefits for a benefit 

year, the determination should be considered as tentative. The daily benefit rate 

shall also be considered tentative if based on a pay rate report completed before 

the end of the base year.

3326.02 Review of tentative determination

When a determination is tentative, as described above, it should be reviewed 

shortly after the end of the calendar year. If the claimant may have additional 

creditable service in the base year, he or she should be given an opportunity to 

claim it by sending him or her Form Letter ID-33e (Exhibit F of AIM-33, Title I). In 

any case in which the claimant's reply to Form Letter ID-33e or information in the 

file indicates that the claimant was not in covered employment in the base year 

subsequent to the employment which had been previously reported when the 

initial determination of benefit rights was made, consider the tentative 

determination as final.

3327 Form Letters

ID-33f (9-88) ID-33j

ID-33g (9-88) ID-33k

ID-33h (9-88)