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and any excess of deductions over income so resulting shall be his net loss from self-employment.

(ii) Wages. For purposes of this paragraph and paragraph (b)(4) of this section, an individual's wages shall be determined under section 209 of the Social Security Act (but without regard to the limitations as to amounts of remuneration specified in subsections (a), (g)(2), (g)(3), (h)(2), and (j) of such section); and in making such computation, services which do not constitute "employment" as that term is defined in section 210 of the Social Security Act performed within the United States by an individual as an employee or performed outside the United States in the active military or naval service of the United States, shall be deemed to be employment as so defined if the remuneration for such services is not includible in computing his net earnings from self-employment or net loss from self-employment, as defined in paragraph (b)(6)(i) of this section.

(iii) Presumptions concerning wages. For purposes of this paragraph, wages, as determined under paragraph (b)(6)(ii) of this section, which according to reports received by the Board are paid to an individual during a taxable year shall be presumed to have been paid to him for services rendered in such year until it is shown to the satisfaction of the Board that they were paid for services rendered in another taxable year. If such reports with respect to an individual show his wages for a calendar year, such individual's taxable year shall be presumed to be a calendar year for purposes of this section until it is shown to the satisfaction of the Board that his taxable year is not a calendar year.

(c) Failure of a widow to have a child in her care. (1) Deductions are to be made from any annuity or annuities payable to a widow under section 237.408 for any month in which such widow does not have in her care a child of her deceased husband entitled to a child's insurance annuity for such month. The amount to be deducted is equal to the amount of the widow's current insurance annuity to which she was entitled for the month in

which she did not have such a child in her care.

(2) The fact that a child's insurance annuity for a particular month is withheld to effect a deduction under any of the other paragraphs of this section, or under § 237.703, or an adjustment under Part 255 of this chapter, does not affect the right of a widow, who has the child in her care, to a widow's current insurance annuity, since the child is nevertheless "entitled" to a child's insurance annuity.

(d) Manner of making deductions. (1) Deductions as provided for in this section are made by withholding insurance annuities in whole or in part, depending upon the amount to be deducted. If the amount to be deducted is not withheld from the insurance annuity or annuities for the month in which the event occurred which occasioned the deduction (if, for example, the occurrence has not been brought to the attention of the Board), such amount will be withheld from the insurance annuity or annuities for one or more subsequent months. The total amount to be deducted may, therefore, at the time of withholding, be greater or less than any insurance annuity or annuities for a month from which such amount is to be withheld.

(2) When it is determined that a deduction is required under paragraph (a), (b), or (c) of this section, no insurance annuity to which the individual in question is entitled for any month will be paid until a total amount equal to the amount to be deducted has been withheld. If the amount of the required deduction is less than any such insurance annuity, or the total of such insurance annuities, for a month, the amount to be deducted will be withheld from such insurance annuity or annuities.

(e) Deductions where more than one deduction event in a month occurs. Section 5(i)(2) of the act prevents duplication of deductions described in paragraphs (a), (b) and (c) of this section, by reason of the occurrence of more than one of the events enumerated in such paragraphs in a particular month. If more than one such event occurs in a month, the total amount of the deduction is the same as if only one such event had occurred.

Section 5(i)(2) of the act has no application to any other deductions or adjustments under the act (see paragraph (h) of this section).

(f) Total amount to be deducted. If, however, any of the events occasioning the deduction under paragraph (a), (b), or (c) of this section occurs in more than one month, the total amount to be deducted is equal to the sum of the deductions for all months in which any such event occurred. With respect to earnings under paragraph (b)(1) of this section, a deduction event is deemed to have occurred in any month to which excess earnings are charged (see paragraph (b)(3) of this section).

(g) Relation to maximum and minimum insurance annuity totals. In effecting a deduction, no amount can be considered as having been withheld from an insurance annuity for a particular month which is in excess of the amount of such insurance annuity as reduced or increased (if required) under section 5(h) of the act (see Subpart F of this part). Likewise, the amount of an insurance annuity by which a deduction is measured (i.e., an insurance annuity for the month in which the event occasioning the deduction occurred) is the amount of such insurance annuity as so reduced or increased.

(h) Relation to other provisions for deductions and adjustments. A deduction required under section 5(i)(1) of the act is made prior to and in addition to any deductions under section 5(1)(3) of the act (see § 237.703), and prior to and in addition to any adjustments under Part 255 of this chapter.

(i) Reports to the Board of certain events occasioning deductions. Section 5(i)(2) of the act imposes upon an individual the obligation to report to the Board the occurrence of any of the events enumerated in paragraph (a), (b), or (c) of this section if such individual is in receipt of an insurance annuity or annuities (on his own behalf or on behalf of another) from which a deduction is to be made under such paragraphs.

[Board Order 55-89, 20 FR 3720, May 27, 1955, as amended by Board Order 60-12, 25 FR 1675, Apr. 6, 1960; Board Order 63-149, 28 FR 9525, Aug. 30, 1963]

§ 237.703 Deductions because of deathbenefit payments.

Section 5(i)(3) of the act provides for certain deductions from any insurance annuities or lump-sum death payments under section 5 on the basis of the insured status of a deceased employee. The basis for and the amount of each of these deductions are set out in paragraphs (a) and (b) of this section.

(a) Death benefits under Retirement Acts. Prior to the amendments approved July 31, 1946, effective January 1, 1947, with regard to the matters here involved, section 5 of the Railroad Retirement Act of 1935, and section 5 of the Railroad Retirement Act of 1937, provided for certain payments upon the death of an employee. Those provisions are superseded, effective January 1, 1947, by the provisions of section 5 of the Railroad Retirement Act as amended. The amendatory act provides that payments upon death as provided in section 5 of the 1935 and 1937 acts, other than survivor annuities pursuant to an election, shall be made only with respect to deaths occurring before January 1, 1947. The total amount paid under the unamended section 5 with respect to the death of an employee, except survivor annuity payments made pursuant to an election, must be deducted from any insurance annuities under this part based on the insured status of that deceased employee.

(b) Lump-sum death payments under Social Security Act. The total amount of any lump sum paid under title II of the Social Security Act with respect to the death of an employee must be deducted from any insurance annuities under this part based on the insured status of that deceased employee.

(c) Manner of making deductions. (1) If more than one person is entitled to any insurance annuity or annuities under this part on the basis of the insured status of the same deceased employee, the deduction required under paragraph (a) or (b) of this section is made from the insurance annuity or annuities to which each such person is entitled in the proportion that his insurance annuity or annuities for a month bears to the total of such insurance annuities for a month.

(2) In any case in which a deduction under paragraph (a) or (b) of this section is to be made, the deduction of the amount designated in paragraph (a) or (b) of this section is made by actuarial recovery from any insurance annuity under this part to which such individual is or becomes entitled on the basis of the insured status of the employee referred to in such paragraph: Provided, however, That the deduction is not less than the amount of the insurance annuity for a month: Provided further, That the actuarial reduction does not exceed the amount of the insurance annuity for a month: And provided further, That such individual does not request the withholding of the entire monthly insurance annuity until the total amount withheld equals the total amount to be recovered. If the deduction is less than the amount of the insurance annuity, or if the actuarial reduction exceeds the amount of the insurance annuity for a month, or if the individual specifically so requests, the deduction is made by withholding until the accumulated withholdings equal the total amount to be recovered.

(d) Relation to other provisions. (1) When deductions are to be made under this section from an insurance annuity or insurance annuities, the amounts to be deducted are measured by and are withheld from the amount of the insurance annuity, or amounts of the insurance annuities, as reduced or increased under section 5(h) of the act (see Subpart F of this part).

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(2) A deduction required under this section is made in addition to any deductions required under section 5(i)(1) of the act (see § 237.702), and in addition to any adjustment under Part 255 of this chapter.

(e) Manner of making deductions. If more than one person is entitled to any insurance annuity or annuities, or to any lump-sum death payment, under this part, on the basis of the insured status of the same deceased employee, the deduction required under paragraph (a), (b), (c), or (d) of this section is made from the insurance annuity or annuities, or from the share of the lump sum, to which each such person is entitled, in the proportion

that his insurance annuity or annuities for a month, or his share of the lump sum, bears to the total of such insurance annuities for a month, or the total of such lump sum.

In any case in which a deduction under paragraph (a), (b), (c), or (d) of this section is to be made from an insurance annuity under this part, such deduction is made in the following

manner:

(1) If the individual had been receiving an insurance benefit under the Social Security Act, and ceased to be entitled thereto because of the provisions of section 5(g)(1) of the Railroad Retirement Act, as amended, the deduction is made by withholding, to the extent hereinafter indicated, the amount designated in such paragraph (a), (b), (c), or (d) of this section, from any such insurance annuity under this part to which such individual is or becomes entitled on the basis of the insured status of the employee referred to in such paragraph. Upon determination that such a deduction is required, there will be withheld from the insurance annuity the amount by which such insurance annuity exceeds the amount of the insurance benefit to which the individual had been so entitled under the Social Security Act; this withholding will be continued until such time as the total of the amounts thus withheld from the insurance annuity equals the amount to be deducted from such insurance annuity.

(2) If the case is not within the purview of paragraph (e)(1) of this section, the deduction is made by withholding, to the extent hereinafter indicated, the amount designated in such paragraph (a), (b), (c), or (d) of this section, from any such insurance annuity under this part to which such individual is or becomes entitled on the basis of the insured status of the employee referred to in such paragraph. Upon determination that such a deduction is required, no such insurance annuity for any month will be paid until a total amount equal to the amount to be deducted has been withheld. If the amount to be deducted is less than the amount of any such insurance annuity for a month, the amount to be deducted will be with

held from the amount of such insurance annuity.

In any case in which a deduction under paragraph (c) or (d) of this section is to be made from lump-sum death payments under this part, such deduction is made by withholding the amount designated in such paragraph from any such lump-sum death payments to which any individual is or becomes entitled on the basis of the insured status of the employee referred to in such paragraph. Upon determination that such a deduction is required, no such lump-sum death payment will be paid until a total amount equal to the amount to be deducted has been withheld. If the amount to be deducted is less than the lump sum then payable, the amount to be deducted will be withheld from such lump sum.

(f) Relation to other provisions. When deductions are to be made under this section from an insurance annuity or insurance annuities, the amounts to be deducted are measured by and are withheld from the amount of the insurance annuity, or the amounts of the insurance annuities, as reduced or increased under section 5(h) of the act (see Subpart F of this part).

A deduction required under this section is made in addition to any deductions required under section 5(i)(1) of the act (see § 237.702), and in addition to any adjustment under Part 255 of this chapter.

[12 FR 2025, Mar. 27, 1947, as amended by Board Order 60-12, 25 FR 1676, Feb. 26, 1960; Board Order 63-149, 28 FR 9526, Aug. 30, 1963]

Subpart H-Application for Insurance Annuities and Lump Sums for Survivors

§ 237.801 Statutory provisions.

(See section 5(j) of the act, quoted in § 237.401, and the last sentence of section 5(f)(1) of the act, quoted in § 237.501.)

[Board Order 55-89, 20 FR 3722, May 27, 1955]

§ 237.802 Application to be filed.

No individual, irrespective of his qualifications, shall receive an annuity

or lump-sum payment under this part unless, on or before the date of his death, his duly executed application upon such form as the Board may from time to time prescribe is filed with the Board.

[Board Order 62-33, 27 FR 3323, Apr. 7, 1962]

§ 237.803 Filing date of application.

An application, filed in the manner and form prescribed in § 237.802, for any payment under this part shall be considered filed with the Board on the date it is received at an office of the Board, or the date it is delivered to a field employee of the Board specifically authorized by a regional director to receive applications in the area where delivery is made, whichever date is earlier: Provided, however, That if in the adjudication of an application for a payment under this part it is determined that the applicant died on a day observed by the Board as a non-work day and that his application was received through the mail at an office of the Board on the first business day following such non-work day, the application shall be deemed to have been filed with the Board on such non-work day if it is established to the satisfaction of the Board that the application was mailed in sufficient time to have been received by the Board in the ordinary course of the mail on such nonwork day had that day been a business day.

[Board Order 62-33, 27 FR 3323, Apr. 7, 1962]

§ 237.804 Signature on application form.

The application form shall be signed personally by the applicant in his usual manner: Provided, however, That if the applicant is unable to sign his name because of physical inability or illiteracy, he shall then make his mark (X) and a witness shall affix the applicant's name. In every case the signature or mark shall either be executed and authenticated in such manner as the form provided may indicate or shall be executed before and authenticated by an employee of the Board duly designated and authorized to perform such services. In the event that the signature or any written por

tion of the application form is, within the judgment of the Board, substantially illegible or of doubtful authenticity, or, if in the judgment of the Board there are substantial omissions in the application form, the Board may require its reexecution or correction: Provided further, That an application form that is reexecuted because the previous form was either not signed or improperly signed shall be returned and shall be received by the Board within 30 days after notice to correct such deficiency is mailed to the applicant; otherwise, the filing date of the application shall be the date on which such reexecuted application form is received by the Board. [Board Order 62-33, 27 FR 3323, Apr. 7, 1962]

§ 237.805 Limitation on filing.

No application for an insurance annuity under this part filed prior to 3 months before the first month for which the applicant becomes otherwise entitled to receive such annuity shall be accepted.

[12 FR 2026, Mar. 27, 1947]

§ 237.806 Filing of application.

(a) With Social Security Administration. (1) The claim or application of an individual filed with the Social Security Administration on or after October 1, 1946, for an insurance benefit or a lump-sum death payment under subsection (c), (d), (e), (f), or (g) of section 202 of title II of the Social Security Act, as amended August 10, 1946, based upon the death of an individual who has had service covered under the Railroad Retirement Act, as amended July 31, 1946, shall be deemed to be an application for the corresponding survivor benefit under subsection (a), (b), (c), (d), or (f) of section 5 of the Railroad Retirement Act, and shall be deemed filed with the Board on the date as of which the Social Security Administration certifies that such application is deemed filed with that agency.

(2) Where an individual files with the Social Security Administration a written statement which indicates an intention to claim monthly benefits or a lump sum, either on his own behalf

or on behalf of some other person, and notice of such intention is communicated in writing to the Board by the Social Security Administration, the Social

Security Administration's record of the individual's intention shall, except where such individual or such other person otherwise indicates, be deemed an application filed with the Board on the date the Social Security Administration's record was made: Provided, however, That such individual or other person was eligible for a payment under this part at the time such record was made: Provided further, That an application on a prescribed form is also furnished to the Board.

(3) In the case of any individual who would be entitled to benefits under subsection (a), (b), (c), or (d) of section 5 of the act upon filing proper application therefor, the filing with the Administrator of Veterans' Affairs by or on behalf of such individual of an application for benefits, on the form prescribed under section 601 of the Servicemen's and Veterans' Survivor Benefits Act, shall satisfy the requirement of subsection (j) of section 5 that an application for such benefits be filed, and shall be deemed filed with the Board on the date as of which such application would be deemed filed with the Social Security Administration.

(b) At Foreign Service Office. Applications from individuals residing outside the United States will be given effect as of the time they are received in a S.S. Foreign Service office. The time of filing will be shown by a datestamp or similar evidence of receipt in the Foreign Service office. If the claims material is not sent via a foreign service office, the date received by the Board will be the filing date.

[Board Order 55-89, 20 FR 3723, May 27, 1955, as amended by Board Order 60–12, 25 FR 1676, Feb. 26, 1960; Board Order 62-33, 27 FR 3323, Apr. 7, 1962]

§ 237.807 Individual deterred from filing application.

Where an individual has notified the Board in writing of his intention or desire to file an application for a payment under this part, but has been deterred to his detriment by action of

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