Earnings for active duty military service or active duty training have been covered under Social Security since 1957. Active duty military service means an individual served on Active Duty, Active Duty for Training (ADUTRA) or was in the Reserves for any of the following United States military organizations: (1) Air Force; (2) Army; (3) Coast Guard; (4) Coast and Geodetic Survey (CGS); (5) Marines; (6) National Guard; (7) Navy; and (8) Commissioned Officer in the Public Health Service (PHS).
Social Security has covered inactive duty service in the armed forces reserves -- for example, weekend drills -- since 1988.
An individual who served in the military before 1957 -- for example, during World War II or the Korean War -- did not pay Social Security taxes on their military service compensation. But the Social Security Administration (SSA) gave special earnings credits to these individuals including those who attended a service academy. In particular, an individual who served in the military on active duty or who attended a service academy between Sept. 6, 1940 and Dec. 31, 1956 may be credited with $160 a month in earnings for military service under the following circumstances:
- The individual was honorably discharged after 90 or more days of service, or was released because of a disability or injury received in the line of duty; or
- The individual is still on active duty; or
- The individual is applying for survivor's benefits and the veteran died while on active duty.
Extra Earnings
An individual's Social Security retirement benefit depends on his or her Social Security earnings (wages or salary that are subject to Social Security payroll tax) averaged over his or her working lifetime. In general, the higher one's earnings, the higher the Social Security benefit. Under certain circumstances, special earnings can be credited to one's military pay record for Social Security purposes. The extra earnings are for periods of active duty or active duty for training. These extra earnings may help an individual qualify for Social Security or increase the amount of one's Social Security benefit.
Note that members of the military have paid Social Security taxes on their military compensation (base pay and bonuses, if any) since Jan. 1, 1957. Since 1988, inactive duty in the Armed Forces reserves such as weekend drills has also been covered by Social Security.
Under certain circumstances, special extra earnings for periods of active duty from 1957 through 2001 can also be credited to an individual's Social Security earnings record for benefit purposes. The following is a summary as to how the extra earnings for periods of active duty between 1957 and 2001 are applied:
- Any individual who served in the military between Jan. 1, 1957 and Dec. 31, 1977 will have the extra credits added when he or she applies for Social Security benefits. In particular, an individual will be credited with $300 in additional earnings for each calendar quarter in which the individual received active duty basic pay -- a maximum of $1,200 per calendar year of active duty.
- Any individual who served in the military between Jan. 1, 1968 and Dec. 31, 2001 automatically had $100 in earnings added to his or her Social Security earnings for every $300 in earned active duty pay up to a maximum of $1,200 a year. But any individual who enlisted after Sept. 7, 1980 and who did complete at least 24 months of active duty or a full tour of duty may not be able to receive the additional earnings. These individuals should check with the Social Security Administration for more details.
Any military service starting Jan. 1, 2002 will not result in earnings added to an individual's Social Security record.
What is the effect of this additional earnings credit for individuals who service in the Armed Forces between 1957 and 2001? Given that:
- the maximum earnings credit per year is $1,200;
- an individual's averaged indexed monthly earnings (AIME) is based on an individual's 35 highest years of Social Security earnings; and
- the primary insurance amount (PIA) -- the amount of a Social Security monthly retirement benefit at full retirement age -- is calculated based on the first 90 percent of an individual's AIME. The result: For every three years of military service between 1957 and 2001 an individual will receive an extra $90 of monthly Social Security retirement benefits. For example, if an individual serves six years in the Armed Forces, the monthly benefit increases by $180.
Finally, it is important to note that in addition to retirement benefits, Social Security also pays survivor benefits to eligible family members -- spouses, former spouses, children and dependent parents. The amount of the survivor benefit is determined by the deceased family member's PIA. Therefore, if the deceased family member's PIA was increased as a result of military service, family members will also benefit as a result of the deceased's military service and increased PIA.
When applying for Social Security benefits, those individuals who served in the military may be asked for proof of their military service. DD Form 214 will suffice, or specific information about one's reserve time or National Guard service should be sufficient.
Posted: 07/25/2011
About the Author
Edward A. Zurndorfer is a Certified Financial Planner, Registered Health Underwriter, Registered Employee Benefits Consultant and Enrolled Agent in Silver Spring, MD and the owner of EZ Accounting and Financial Services, an accounting, tax preparation and financial planning firm also located in Silver Spring, MD. He is an instructor at federal employee retirement seminars throughout the country and writes numerous columns and books on federal employee benefits.
This is a string of messages that adresses addition social security credits gain from both active service and active duty for training (such as summer camps and additonal camps).
Thanks Bob... this is very good information and I hope our council members
pass it along to their constituents.
Joe
Subject: RE: DD FORM 214 -- Extra SOCIAL SECURITY BENEFIT for those with
active duty active duty between January 1957 to December 31, 2001
(UNCLASSIFIED)
Classification: UNCLASSIFIED
Caveats: NONE
Hi Joe, The below info is true, also on the M-Day side of the house, If a
person has their old NGB 23 that was manually typed in the old days, it will
have summer camp dates on them that will count for those quarters on dates
listed. The old NGB-23 will give up to 1990 time frame, People can contact
this office to see if we can help them in this manner by filing out an SF
180(An authorization to release info on military records) or show ID in
office. This info will make a few dollars difference.
ADDRESS OF OFFICE: OFFICE OF THE ADJUTANT GENERAL
ATTN; NGMO-PER-AR
Bob Ortmeyer
2302 MILITIA DRIVE
Veteran Services Supervisor
JEFFERSON CITY, MO 65101-1203
NGMO-PER-AR
robert.d.ortmeyer@us.army.mil
573-638-9890/9683
573-638-9546 - Fax
Subject: Fw: DD FORM 214 -- Extra SOCIAL SECURITY BENEFIT for those with
active duty active duty between January 1957 to December 31, 2001
(UNCLASSIFIED)
Subject: FW: DD FORM 214 -- Extra SOCIAL SECURITY BENEFIT for those with
active duty active duty between January 1957 to December 31, 2001
(UNCLASSIFIED)
Classification: UNCLASSIFIED
Caveats: NONE
FYI...See information below.
DD FORM 214 -- SOCIAL SECURITY BENEFIT Please share this with anyone who's
had active duty service between January 1957 to December 31, 2001 and
planning for retirement. In a nutshell it boils down to this:
You qualify for a higher social security payment because of your Military
service, for active duty any time from 1957 through 2001 (the program was
done away with 1 January 2002). Up to $1200 per year of earnings credit
credited at time of application - which can make a substantial difference
in
social security monthly payments upon your retirement. You must bring your
DD-214 to the Social Security Office and you must ask for this benefit to
receive it!
Soc Sec website: http://www.ssa.gov/retire2/military.htm
<blockedhttp://www.ssa.gov/retire2/military.htm>
This is something to put in your files for when you apply for Social
Security down the road.. It is NOT just for retirees, BUT anyone who has
served on active duty between January 1957 to December 31, 2001.
FYI - this benefit is not automatic, you must ask for it! We've all been
on
active duty between 1957 and 2001 or know someone who has.
Passing on good information for all you military folks when you apply for
social security. I know this may be too early for some of you to think
about
social security but, keep living and you will get there...
KEITH L. LOETHEN
SFC, MOARNG
Readiness NCO
FOREVER SERVING PROUDLY
138th Forward Support Company
1/138th Infantry Regiment
"FIRST MISSOURI"
801 Armory Drive
Jefferson City, MO 65109
Comm: 573-638-0635
PBX: 3252
Cell: 573-690-7970
FAX: 573-638-0621
Email: keith.loethen@us.army.mil
Blackberry: keith.loethen@att.blackberry.net
NCO Net: https://forums.bcks.army.mil/
<blockedhttps://forums.bcks.army.mil/>
...I WILL NOT FORGET, NOR WILL I ALLOW MY COMRADES TO FORGET THAT WE ARE
PROFESSIONALS, NONCOMMISSIONED OFFICERS, LEADERS!
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