[Federal Register Volume 59, Number 8 (Wednesday, January 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-658]


[[Page Unknown]]

[Federal Register: January 12, 1994]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES
 

Social Security Ruling SSR 94-2p; Title XVI: Workers' 
Compensation (WC) Payments

AGENCY: Social Security Administration, HHS.

ACTION: Notice of social security ruling.

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SUMMARY: In accordance with 20 CFR 422.406(b)(1), the Commissioner of 
Social Security gives notice of Social Security Ruling 94-2p. This 
Policy Interpretation Ruling clarifies the Social Security 
Administration's (SSA) longstanding policy that, under the supplemental 
security income program, any portion of a workers' compensation (WC) 
payment designated by the authorizing or paying agency for medical 
expenses, or for legal or other expenses attributable to obtaining the 
WC award is not income. These expenses may be past, current, or future.

EFFECTIVE DATE: January 12, 1994.

FOR FURTHER INFORMATION CONTACT: Joanne K. Castello, Office of 
Regulations, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235, (410) 965-1711.

SUPPLEMENTARY INFORMATION: Although we are not required to do so 
pursuant to 5 U.S.C. 552 (a)(1) and (a)(2), we are publishing this 
Social Security Ruling in accordance with 20 CFR 422.406(b)(1).
    Social Security Rulings make available to the public precedential 
decisions relating to the Federal old-age, survivors, disability, 
supplemental security income, and black lung benefits programs. Social 
Security Rulings may be based on case decisions made at all 
administrative levels of adjudication, Federal court decisions, 
Commissioner's decisions, opinions of the Office of the General 
Counsel, and other policy interpretations of the law and regulations.
    Although Social Security Rulings do not have the force and effect 
of the law or regulations, they are binding on all components of the 
Social Security Administration, in accordance with 20 CFR 
422.406(b)(1), and are to be relied upon as precedents in adjudicating 
other cases.
    If this Social Security Ruling is later superseded, modified, or 
rescinded, we will publish a notice in the Federal Register to that 
effect.

(Catalog of Federal Domestic Assistance Program No. 93.807 
Supplemental Security Income)

    Dated: January 3, 1994.
Shirley S. Chater,
Commissioner of Social Security.

Policy Interpretation Ruling

Title XVI: Workers' Compensation (WC) Payments

    Purpose: To clarify that, under the supplemental security income 
(SSI) program, any portion of a WC payment designated for medical 
expenses, or for legal or other expenses attributable to obtaining the 
WC award is not income.
    Citations (Authority): Section 1612(a)(2)(B) of the Social Security 
Act (SSACT), as amended; Regulations No. 16, sections 416.1103(a), 
416.1121(a), and 416.1123(b)(3)
    Pertinent History: WC is awarded to an injured employee or to the 
survivor(s) of an employee under Federal and State WC programs and the 
Longshoremen and Harbor Workers' Act. It may be paid by a Federal or 
State agency, an insurance company, or an employer. Payments may 
include amounts for medical expenses, or for legal or other expenses 
attributable to obtaining the WC award. These expenses may be past, 
current, or future and may be lump-sum or periodic in nature.
    The SSACT at section 1612(a)(2)(B), and regulations at 20 CFR 
416.1121(a) provide that WC is unearned income for SSI purposes. 
Regulations at 20 CFR 416.1123(b)(3) provide for counting less than the 
amount actually received when part of the amount received is for an 
expense of obtaining the income. Regulations at 20 CFR 416.1103(a) 
provide that reimbursement for certain medical expenses is not income.
    Policy Interpretation: If the Federal or State agency, insurance 
company, or employer that authorizes or makes a WC payment designates 
any portion of it for medical expenses, or for legal or other expenses 
attributable to obtaining the WC award, such portion is not income for 
SSI purposes. The expenses may be past, current, or future. Any portion 
of a WC award or payment not designated for such expenses is unearned 
income.
    Effective Date: This Ruling merely clarifies longstanding SSI 
policy on the treatment of WC payments designated for certain types of 
expenses. If a case comes to SSA's attention where SSA did not apply 
this policy, SSA will reopen and revise the earliest determination 
possible under the rules of administrative finality. SSA will use the 
2-year reopening rule, treating the determination as an error on the 
face of the evidence.

    Cross-Reference: Program Operations Manual System, Part 5, 
Chapter 008, Subchapter 30, Section SI 00830.235.

[FR Doc. 94-658 Filed 1-11-94; 8:45 am]
BILLING CODE 4190-29-P