Federal Register: October 14, 2009 (Volume 74, Number 197)
DOCID: fr14oc09-26 FR Doc E9-24648
SOCIAL SECURITY ADMINISTRATION
Social Security Administration
CFR Citation: 20 CFR Parts 404 and 416
Docket ID: [Docket No. SSA-2009-0067]
RIN ID: RIN 0960-AH08
NOTICE: PROPOSED RULES
DOCID: fr14oc09-26
DOCUMENT ACTION: Notice of proposed rulemaking.
SUBJECT CATEGORY:
Transfer of Accumulated Benefit Payments
DATES: To be sure that we consider your comments, we must receive them by December 14, 2009.
DOCUMENT SUMMARY:
We propose to amend our regulations to allow a representative
payee who will no longer be serving in that capacity to transfer accumulated
[[Page 52707]]
benefit payments and interest directly to a beneficiary if we determine
that it would be in the best interest of the beneficiary. This change
would give us more flexibility in deciding how conserved funds should
be handled in these circumstances. The change would also reduce or
eliminate delays in the delivery of conserved funds to some
beneficiaries.
SUMMARY:
Transfer of Accumulated Benefit Payments
SUPPLEMENTAL INFORMATION
Electronic Version
The electronic file of this document is available on the date of publication in the Federal Register at http://www.gpoaccess.gov/fr/ index.html.
Background
Our representative payment regulations are in Subpart U of part 404 and subpart F of part 416. In certain cases, we will appoint a representative payee to receive benefit payments on behalf of a beneficiary. Generally, we appoint a representative payee if we have determined that the beneficiary is not able to manage his or her own benefits or direct the management of benefit payments in his or her interest. The payee must use the payments only for the beneficiary's use and benefit. The payee must conserve or invest for the beneficiary any funds remaining after paying for the beneficiary's current needs.
If a payee is no longer going to serve in that capacity, our regulations require the payee to return conserved funds to us or transfer them to a successor payee, as we will specify. The payee is not permitted to transfer these conserved funds to a beneficiary directly. 20 CFR 404.2060 and 416.660. The payee's inability to directly transfer funds to a beneficiary can cause difficulty for both the beneficiary and the representative payee. When we determine that a payee is no longer needed because the beneficiary has become capable of managing his or her own benefits, this twostep process delays our payment of the conserved funds to the beneficiary.
Our regulatory process is particularly problematic for those beneficiaries transitioning out of foster care and for their payees. These beneficiaries might need immediate access to the conserved funds to pay for rent or other necessities. Additionally, at least one State law requires State agency representative payees for beneficiaries in foster care to turn over all conserved funds directly to the beneficiary when he or she transitions out of foster care.
Explanation of Changes
We propose to revise Sec. Sec. 404.2060 and 416.660 of our regulations to permit a payee to transfer conserved funds to a beneficiary if we so specify. The proposed change would give us the discretion to authorize a payeetobeneficiary transfer of conserved funds and make the representative payment process more efficient. Allowing direct transfer would conserve our scarce administrative resources and provide faster access to beneficiaries who have become capable of managing their own benefits.
Clarity of These Proposed Rules
Executive Order 12866 requires each agency to write all rules in
plain language. In addition to your substantive comments on these
proposed rules, we invite your comments on how to make them easier to understand. For example:
When Will We Start To Use These Rules?
We will not use these rules until we evaluate the public comments
we receive on them, determine whether they should be issued as final
rules, and issue final rules in the Federal Register. If we publish
final rules, we will explain in the preamble how we will apply them,
and summarize and respond to the significant public comments. Until the
effective date of any final rules, we will continue to use our current rules.
Regulatory Procedures
Executive Order 12866
We have consulted with the Office of Management and Budget (OMB) and determined that these proposed rules do not meet the requirements for a significant regulatory action under Executive Order 12866. Thus, they were not reviewed by OMB.
Regulatory Flexibility Act
We certify that these proposed rules, if published in final, would
not have a significant economic impact on a substantial number of small
entities because they would affect primarily individuals. Accordingly, a regulatory flexibility analysis as provided in the
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Regulatory Flexibility Act, as amended, is not required.
Paperwork Reduction Act
This rule does not create any new, or affect any existing,
collections, and therefore, does not require OMB approval under the Paperwork Reduction Act.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social
SecurityDisability Insurance; 96.002, Social SecurityRetirement
Insurance; 96.004, Social SecuritySurvivors Insurance; and 96.006, Supplemental Security Income)
List of Subjects
20 CFR Part 404
Administrative practice and procedure; Blind; Disability benefits; OldAge, Survivors, and Disability Insurance; Reporting and recordkeeping requirements; Social Security.
20 CFR Part 416
Administrative practice and procedure; Aged, Blind, Disability
benefits, Public assistance programs; Reporting and recordkeeping requirements; Supplemental Security Income (SSI).
Dated: October 2, 2009.
Michael J. Astrue,
Commissioner of Social Security.
For the reasons set out in the preamble, we propose to amend
subpart U of part 404 and subpart F of part 416 of chapter III of title 20 Code of Federal Regulations as set forth below:
PART 404FEDERAL OLDAGE, SURVIVORS AND DISABILITY INSURANCE (1950 )
Subpart U[Amended]
1. The authority citation for subpart U of part 404 is revised to read as follows:
Authority: Secs. 205(a), (j), and (k), and 702(a)(5) of the Social Security Act (42 U.S.C. 405(a), (j), and (k), and 902(a)(5)).
2. Amend Sec. 404.2060 by revising the first sentence to read as follows:
Sec. 404.2060 Transfer of accumulated benefit payments.
A representative payee who has conserved or invested benefit
payments shall transfer these funds and the interest earned from the
invested funds to either a successor payee, to the beneficiary, or to us, as we will specify. * * *
PART 416SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND DISABLED
Subpart F[Amended]
3. The authority citation for subpart F of part 416 is revised to read as follows:
Authority: Secs. 702(a)(5), 1631(a)(2) and (d)(1) of the Social Security Act (42 U.S.C. 902(a)(5) and 1383(a)(2) and (d)(1)).
4. Amend Sec. 416.660 by revising the first sentence to read as follows:
Sec. 416.660 Transfer of accumulated benefit payments.
A representative payee who has conserved or invested benefit
payments shall transfer these funds, and the interest earned from the
invested funds, to either a successor payee, to the beneficiary, or to us, as we will specify. * * *
[FR Doc. E924648 Filed 101309; 8:45 am]
BILLING CODE 419102P
FOR FURTHER INFORMATION CONTACT
Richard Bresnick, Office of Regulations, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 212356401, (410) 9651758. For information on eligibility or filing for benefits, call our national tollfree number, 18007721213 or TTY 18003250778, or visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.