[Federal Register Volume 59, Number 221 (Thursday, November 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28325]


[[Page Unknown]]

[Federal Register: November 17, 1994]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Social Security Administration

 

Social Security Acquiescence Rulings: Rescissions; Paxton v. HHS 
Secretary; Augmented Veterans Benefit Paid Directly to Veteran, 
Treatment of Dependent's Portion

AGENCY: Social Security Administration, HHS.

ACTION: Notice of Rescission of Social Security Acquiescence Ruling 90-
1(9)--Paxton v. Secretary of Health and Human Services, 856 F.2d 1352 
(9th Cir. 1988).

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SUMMARY: In accordance with 20 CFR 416.1485(e) and 422.406(b)(2), the 
Commissioner of Social Security gives notice of the rescission of 
Social Security Acquiescence Ruling 90-1(9).

EFFECTIVE DATE: November 17, 1994.

FOR FURTHER INFORMATION CONTACT:
Gary Sargent, Litigation Staff, Social Security Administration, 6401 
Security Blvd., Baltimore, MD 21235, (410) 965-1695.

SUPPLEMENTARY INFORMATION: A Social Security Acquiescence Ruling 
explains how we will apply a holding in a decision of a United States 
Court of Appeals that we determine conflicts with our interpretation of 
a provision of the Social Security Act or regulations when the 
Government has decided not to seek further review of the case or is 
unsuccessful on further review.
    As provided by 20 CFR 416.1485(e)(4), a Social Security 
Acquiescence Ruling may be rescinded as obsolete if we subsequently 
clarify, modify or revoke the regulation or ruling that was the subject 
of the circuit court holding for which the Acquiescence Ruling was 
issued.
    On July 16, 1990, we issued Acquiescence Ruling (AR) 90-1(9) (55 FR 
28946) to reflect the Ninth Circuit's holding in Paxton v. Secretary of 
Health and Human Services, 856 F.2d 1352 (9th Cir. 1988), that, as 
written, the current regulations did not support counting the 
dependent's portion of an augmented Department of Veterans Affairs (VA) 
benefit as unearned income to the dependent in determining supplemental 
security income (SSI) eligibility and calculating benefits. 
Acquiescence Ruling 90-1(9) applied to SSI applicant and recipient 
cases arising in the Ninth Circuit in which an individual received an 
augmented VA benefit.
    On November 17, 1994, we are publishing final regulations which set 
out our policy, under the SSI program, regarding the treatment of 
veterans benefits that are augmented to provide for dependents. The 
effect of these regulations is to clarify and make more equitable our 
treatment of the ``dependent's portion'' of augmented veterans 
benefits. The regulations state that, if an individual receives a 
veteran's benefit that includes an amount paid to him or her because of 
a dependent, we will not count as unearned income the amount paid to 
him or her because of the dependent. The regulations additionally 
provide that the dependent's portion will be counted as the dependent's 
unearned income if the dependent resides with the veteran or the 
veteran's surviving spouse, or if the dependent receives his or her own 
portion in a separate payment from the Department of Veterans Affairs.
    Because these regulations address the issued decided by the Paxton 
court, we hereby rescind AR 90-1(9) as obsolete. The regulations make 
specific provisions for those individuals in the Ninth Circuit who 
might lose SSI benefits as a result of this rescission.
    Adjudicators of claims arising in the Ninth Circuit (Alaska, 
Arizona, California, Hawaii, Idaho, Montana, Nevada, Northern Mariana 
Islands, Oregon and Washington) will no longer follow AR 90-1(9), but 
will decide cases based on the amended regulations.

(Catalog of Federal Domestic Assistance Programs Nos. 93.802 Social 
Security--Disability Insurance; 93.803 Social Security--Retirement 
Insurance; 93.805 Social Security--Survivors Insurance; 93.806--
Special Benefits for Disabled Coal Miners; 93.807--Supplemental 
Security Income.)

    Dated: September 22, 1994.
Shirley S. Chater,
Commissioner of Social Security.
[FR Doc. 94-28325 Filed 11-16-94; 8:45 am]
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