Example: The State files Form OAR-S4 timely to correct an error in the amount reported as wages to the employee. The correction reduces the employee's wage credits for the year to an amount less than the maximum creditable. The employee had other earnings in the same year not reported because of the previous reported maximum amounts. The applicable time period for assessing contributions on wages for the year has expired before the credit was allowed. The Secretary may assess for contributions due provided the assessment is made no later than the allowance of the credit.

(e) Evasion of payment of amounts due. An assessment of an amount due under an agreement may be made at any time and without regard to the periods of limitation described in § 404.1280 where the failure on the part of the State to pay such amount was the result of a fraudulent attempt by an officer or employee of the State or a political subdivision thereof to defeat or evade payment of such amount.

(42 U.S.C. 404) [30 F.R. 2703, Mar. 3, 1965]

§ 404.1282

Payment after expiration of periods of limitation for assessment.

The Secretary shall accept wage reports filed by a State to include wages paid to individuals performing services as employees in a coverage group notwithstanding the expiration of the applicable time period described in

§ 404.1280 (or such period as extended in accordance with § 404.1281): Provided:

(a) The State pays the Secretary of the Treasury the amount due with respect to such wages; and

(b) The State agrees in writing with the Secretary to extend such time period for all employees in the coverage

group in the calendar quarters for which the wage reports are being made.

In this event, such time period for assessment is extended until the Secretary notifies the State that such wage reports are accepted. Where pursuant to an agreement with the Secretary in accordance with this section, amounts are paid by the State, such amounts shall not include interest as otherwise provided for in section 218(j) of the Act. (See § 404.1226 relating to the payment of interest.)

(42 U.S.C. 404) [30 F.R. 2703, Mar. 3, 1965] § 404.1283 Assessment of interest.

Where a State pays the amounts assessed at such times or under such conditions that interest becomes due, an assessment for the amount of such interest may be made notwithstanding the periods of limitation described in § 404.1280.

(42 U.S.C. 404) [30 F.R. 2703, Mar. 3, 1965] § 404.1284 Collection after assessment.

Where an assessment of an amount due has been made within the time period applicable thereto, there shall be no time limitation on the collection of the amount due.

(42 U.S.C. 404) [30 F.R. 2704, Mar. 3, 1965] § 404.1285 Time limitations on credits or refunds.

(a) In general. No credit or refund of an overpayment of amounts paid under an agreement pursuant to section 218 of the Act by a State shall be allowed unless a claim for such credit or refund is filed by the State with the Secretary before the expiration of the period of limitation applicable thereto. A claim for credit or refund made by a State in accordance with the applicable provisions of these regulations is deemed to have been filed with the Secretary when delivered to the Secretary, or when mailed to the Secretary if the date of the postmark on the envelope in which such request is mailed falls within the prescribed period. (See § 404.3 (c) for applicable rule where periods of limitation expire on nonwork days.)

(b) Overpayment defined. An overpayment is a payment of more than the correct amount of contributions, interest,

or both with respect to wages paid an individual as a member of a coverage group during one or more calendar quarters. An overpayment may be due to (1) an over-reporting of the amount of wages paid to an individual, (2) an erroneous computation of contributions, or (3) an amount paid for wages reported after expiration of the periods of limitation in § 404.1280 (or as extended under § 404.1281) if not paid pursuant to § 404.1282.

(c) Periods of limitation. Subject to the exceptions set forth in § 404.1286, claim for credit or refund of an overpayment must be filed by the State before the expiration of the latest of the following periods:

(1) 3 years, 3 months, and 15 days after the year which includes the calendar quarter in which the wages were paid or alleged to have been paid with respect to which the overpayment occurred; or

(2) 3 years after the due date of the payment which included the overpayment; or

(3) 2 years after the overpayment was made to the Secretary of the Treasury; or

(4) 3 years, 3 months, and 15 days after 1961 (April 15, 1965).

(42 U.S.C. 404) [30 FR. 2704, Mar. 3, 1965]

§ 404.1286 Exceptions to the periods of limitation.

(a) Extension by agreement. The applicable time period as described in § 404.1285 for filing a claim for credit or refund of an overpayment may, before the expiration of such period (or of any previous extension thereof) be extended by written agreement between the State and the Secretary subject to such conditions as are agreed upon. The extension of the period of limitation shall not become effective until the agreement is signed by the Secretary. (See § 404.3 (c) for applicable rule where the periods of limitation expire on nonwork days.) A claim for credit or refund filed by the State prior to the expiration of such extended period will be deemed to be made within the periods of limitation described in § 404.1285.

(b) Revision of employee's earnings record. If the Secretary, pursuant to the provisions of section 205(c)(5) (A), (B), or (E) of the Act, deletes from his records an entry with respect to an in

dividual as a member of a coverage group, a claim for credit or refund of the overpayment resulting from such deletion will be deemed to have been made within the periods of limitation prescribed in § 404.1285 provided such claim is filed before the individual's earnings record with respect to such deletion becomes final. (See § 404.806 (a), (b), and (e). Section 404.806 (e) relates to the revision of earnings records after the expiration of the time limitation where an entry on the record is erroneous as a result of fraud.)

(42 U.S.C. 404) [30 F.R. 2704, Mar. 3, 1965; 30 F.R. 3207, Mar. 9, 1965]

§ 404.1287 Allowance of a credit or refund.

An allowance of a credit or refund of an overpayment to a State made as the result of a determination by the Department shall be subject to the periods of limitation in § 404.1285 (or as extended under § 404.1286).

(42 U.S.C. 404) [30 F.R. 2704, Mar. 3, 1965] § 404.1290 Secretary defined.

Unless otherwise specified or unless the context otherwise requires, the term "Secretary" as used in this subpart shall mean the Secretary of Health, Education, and Welfare or his duly authorized delegate.

(42 U.S.C. 404)

Subpart N

[30 FR. 2704, Mar. 3, 1965]

Benefits in Case of
Veterans

WORLD WAR II VETERANS

AUTHORITY: The provisions of this Subpart N issued under sec. 217, 64 Stat. 512, as amended, 49 Stat. 647, as amended; sec. 5 of Reorganization Plan No. 1 of 1953, 67 Stat. 18, 631; 42 U.S.C. 417.

SOURCE: The provisions of this Subpart N appear at 27 F.R. 9716, Oct. 2, 1962, unless otherwise noted.

§ 404.1301 General effect of section 217 of the Act.

(a) Section 217(a) of the Act grants World War II veterans (for definition of "World War II veteran" see § 404.1304) wage credits for active service (including service deemed or considered active service) in the armed forces of the United States during World War II. (See § 404.1302 for definition of World War

I period.) For provisions relating to section 217(a) of the Act see § 404.1308 and §§ 404.1310 through 404.1314.

(b) Section 217(b) of the Act gives certain World War II veterans, in the event of their death, a deemed fully insured status with a deemed average monthly wage, and provides their survivors the same benefit rights that would accrue to them if the veterans had died fully insured. For provisions relating to section 217(b) of the Act see §§ 404.1315 through 404.1321.

(c) Section 217(e) of the Act gives veterans of post-World War II service (for definition of "veteran of post-World War II service" see § 404.1305) wage credits for active service (including service deemed active service) in the armed forces of the United States during the post-World War II period. (For definition of "post-World War II” period see § 404.1303.) For provisions relating to section 217(e) of the Act see §§ 404.1309 through 404.1314.

(d) In any case in which either of the sections 217(a), 217(b), and 217(e) of the Act may be applicable, the provisions in the section that will result in the payment of the larger benefit apply.

§ 404.1302 "World War II" period defined.

The term "World War II" means the period beginning with September 16, 1940, and ending at the close of July 24, 1947.

The term "post-World War II" means the period beginning with July 25, 1947, and ending at the close of December 31, 1956.

§ 404.1304 "World War II veterans" defined.

(a) Included individuals. The term "World War II veteran" means any person who was in the active service of any of the armed forces of the United States, including the Army, Navy, Marine Corps, and Coast Guard, or any of the components thereof, during World War I (see § 404.1302), and who if discharged or released from such active service, was so separated under conditions other than dishonorable (see § 404.1307) after active service of at least 90 days (see § 404.1306) or by reason of a disability or injury incurred or aggravated in service in line of duty. (Service creditable as de

scribed in this provision is effective with respect to monthly benefits for months after August 1950, for lump-sum death payments in cases of deaths after August 1950, and for establishment of a period of disability under section 216(i)(3) of the Act.) Subject to the same conditions of separation and service, the term also includes:

(1) A member of the commissioned corps of the United States Public Health Service who was (i) on active commissioned service during the period September 16, 1940, to July 28, 1945, inclusive, and detailed to a component of one of the armed forces, or (ii) in the active service of the Public Health Service on or after July 29, 1945, and before July 25, 1947. (Service creditable as described in this subparagraph is applicable with respect to monthly benefits for months after August 1950, to lumpsum death payments in cases of deaths occurring after August 1950, and for establishment of a period of disability under section 216(i) (3) of the Act.)

(2) A member of the commissioned corps of the United States Coast and Geodetic Survey who (i) during the period September 16, 1940, to July 24, 1947, inclusive, was actually transferred to extended active duty with any of the armed forces of the United States, or was assigned to extended active duty on military projects in areas determined by the Secretary of Defense to be areas of immediate military hazard, or (ii) was serving on active duty with the Coast and Geodetic Survey in the Philippine Islands on December 7, 1941, or (iii) was on active duty with the Coast and Geodetic Survey during the period July 29, 1945, to July 24, 1947, inclusive. (Service creditable as described in subdivisions (i) and (ii, of this subparagraph is effective for monthly benefits beginning after August 1950, for lump-sum death payment purposes in cases of death occuring after August 1950, and for establishment of a period of disability under section 216(i)(3) of the Act. Service creditable as described in subdivision (iii) of this subparagraph is effective for monthly benefits beginning after December 1956, for lump-sum death payment purposes in cases of deaths occuring after December 1956, and for establishment of a period of disability under section 216(i)(3) of the Act. In the case where entitlement to a monthly benefit based on the wages and/or self

employment income of a veteran of World War II existed for December 1956, such benefit may be recomputed to inIclude the service described in subdivision (iii) of this subparagraph only upon application filed after December 1956 by such veteran, or if the veteran is deceased, by any other person entitled to benefits on the basis of his earnings. Such application is effective for months beginning January 1957 or beginning after the thirteenth month before the month such application is filed, whichever is later.)

(3) A member of the Philippine Scouts who performed active service during the World War II period under the direct supervision of recognized military authority. (Service creditable as described in this subparagraph is effective with respect to monthly benefits for months after August 1950, for lump-sum death payments in cases of deaths occurring after August 1950, and for establishment of a period of disability under section 216(i) (3) of the Act.)

(4) An individual who (i) served during World War II in the active military or naval service of an "allied country," that is, a country which was on September 16, 1940, at war with a country with which the United States was at war during World War II and (ii) had entered into such active service before December 9, 1941, and (iii) was a citizen of the United States throughout such period of service or lost his United States citizenship solely because of his entrance into such service, and (iv) had resided in the United States for a period or periods aggregating 4 years during the 5-year period ending on the day of entrance into such service and, on such day, was domiciled in the United States. (Active service for allied countries is considered to have been performed in the active service of the United States and is creditable for monthly benefit purposes for months after August 1958, for lump-sum death payment purposes only where death occurred after August 1958, and for establishment of a period of disability under section 216(1) (3) of the Act. Where such veteran was entitled to an old-age insurance benefit or disability insurance benefit before September 1958 based on wages and/or selfemployment income, or where survivors of such veteran were entitled to benefits for August 1958 based on his earnings record, such benefits may be recomputed

to include World War II service wage credits under this subparagraph but only upon application filed therefor after August 1958. Such application is effective for months beginning with September 1958, or beginning after the thirteenth month before the month such application is filed, whichever is later.)

(5) A member of the Women's Army Auxiliary Corps, who served during the period May 14, 1942, to September 29, 1943, inclusive, provided she also performed active service with a component of the armed forces after September 29, 1943. (Service creditable as described in this subparagraph is effective for monthly benefits beginning with August 1959, for the lump-sum death payment where death occurred on or after August 7, 1959, and for establishment of a period of disability under section 216(i) (3) of the Act.)

(b) Excluded individuals. The term "World War II veteran" does not include any individual who died while in the active service if his death was inflicted as punishment for a military or naval offense under the laws of any country, other than under the laws of a country which was an enemy of the United States at the time of his death. Neither does the term include an individual whose service was performed as a member of units such as the Women's Army Auxiliary Corps (WAAC) (except under the conditions in paragraph (a) (5) of this section), the Coast Guard Auxiliary, the Coast Guard Reserve (Temporary) unless the individual served on active fulltime duty with military pay and allowances, the Civil Air Patrol, or the Civilian Auxiliary to the Military Police.

§ 404.1305 "Veteran of post-World War II service" defined.

(a) Included individuals. The term "veteran of post-World War II service." includes any individual who was in the active service of the armed forces of the United States, including the Army, Air Force, Navy, Marine Corps, and the Coast Guard or any of the components thereof during the post-World War II period. as defined in § 404.1303, and who, if discharged or released from active service. was so separated under conditions other than dishonorable (see § 404.1307) after at least 90 days of active service (see § 404.1306) or by reason of a disability or injury incurred or aggravated in service in line of duty. (Service creditable as described in this provision is effective

for monthly benefits for months after August 1952, for lump-sum death payments in cases of deaths after August 1952, and for establishment of a period of disability under section 216 (i) (3) of the Act. Where entitlement to a monthly benefit on the basis of the wages and/or self-employment income of a veteran of post-World War II service (as defined in this paragraph (a)) existed for August 1952, such benefit may be recomputed to include post-World War II service credits as described in § 404.1309 (a) only upon application filed by such veteran before January 1, 1961, or, if he died before that date, upon application filed by any other person entitled to such benefits on the basis of his earnings record. If such veteran was deceased in August 1952, and any other person was entitled to a monthly benefit for August 1952 based on his earnings record, the benefits of such other person may be recomputed to include postWorld War II service credits upon application filed by such other person. Applications filed as provided in this paragraph are effective for months after August 1952 or after the seventh month before the month in which such application was filed, whichever is later.) Subject to the same conditions of separation and service the term "veteran of post-World War II service" also includes:

(1) A member of the commissioned corps of the United States Public Health Service who was (i) in the active commissioned service during the period July 25, 1947, to July 3, 1952, inclusive, or (ii) in the active commissioned service from July 4, 1952, to December 31, 1956, inclusive, provided the active service was rendered while on detail to the United States Army, Navy, Air Force, Marine Corps, or Coast Guard, or (iii) in the active commissioned service from July 4, 1952, through December 31, 1956, but not on detail to a component of the uniformed services. (For effective dates see parenthetical statement at end of subparagraph (2) of this paragraph

(a).)

(2) A member of the commissioned corps of the United States Coast and Geodetic Survey who (i) during the period July 25, 1947, to December 31, 1956, inclusive, was actually transferred to active duty in the armed forces of the United States or was assigned to active duty on military projects in areas determined by the Secretary of Defense to be areas of immediate military hazard,

or (ii) was serving on active duty with the Coast and Geodetic Survey in the Philippine Islands on December 7, 1941, or (iii) was in the active commissioned service of the Coast and Geodetic Survey during the period July 25, 1947, to December 31, 1956, inclusive, but not transferred to active duty in a service department nor assigned to active duty on a military project in areas of immediate military hazard. (Services creditable as described in subdivisions (i) and (ii) of subparagraph (1) of this paragraph and as described in subdivisions (i) and (ii) of subparagraph (2) of this paragraph are effective for monthly benefits for months after August 1952, for lump-sum death payments in cases of deaths occurring after August 1952, and for establishment of a period of disability under section 216(i) (3) of the Act. Where entitlement to a monthly benefit on the basis of the wages and/or self-employment income of a veteran of post-World War II service as described in subdivisions (i) and (ii) in subparagraph (1) of this paragraph and subdivisions (1) and (ii) in subparagraph (2) of this paragraph existed for August 1952, such benefit may be recomputed to include the services creditable as described in subdivisions (i) and (ii) in subparagraph (1) of this paragraph and subdivisions (1) and (ii) in subparagraph (2) of this paragraph upon application filed by such veteran before January 1, 1961, or, if he died before that date, upon application for benefits filed by any person entitled to such benefits on the basis of his earnings record. If such veteran was deceased in August 1952, and any other person was entitled to monthly benefits for August 1952 based on his earnings record, the benefits of such other person may be recomputed to include the services creditable as described in subdivisions (i) and (ii) in subparagraph (1) of this paragraph and subdivisions (i) and (ii) in subparagraph (2) of this paragraph upon application filed by such other person. Recomputation of benefits for inclusion of services creditable as described in these subdivisions pursuant to applications timely filed are effective for months after August 1952 or after the seventh month before the month in which such application was filed, whichever is later. Services creditable as described in subdivision (iii) in subparagraph (1) of this section and subdivision (iii) in subparagraph (2) of this paragraph are effective for monthly benefits