[Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
[Rules and Regulations]
[Pages 42377-42378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20785]


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RAILROAD RETIREMENT BOARD

20 CFR Part 348

RIN 3220-AB14


Representative Payment

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
in order to provide guidelines regarding the selection, payment, 
responsibilities, and monitoring of representative payees under the 
Railroad Unemployment Insurance Act. This amendment is being made to 
improve the administration of the Board's representative payee program.

EFFECTIVE DATE: August 15, 1996.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush 
Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Assistant General 
Counsel, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 
60611, (312) 751-4513; TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: The Railroad Unemployment Insurance Act (45 
U.S.C. 351-368) provides a system of unemployment and sickness benefits 
for railroad employees who meet certain eligibility requirements under 
that Act. On rare occasions, a claimant is incompetent to file for or 
receive benefits under the Act without the assistance of a 
representative payee. Under such circumstances, section 12(a) of the 
Railroad Retirement Act expressly authorizes the Board to make 
payments, or conduct transactions, directly with the claimant, with a 
legally appointed guardian of the claimant, or with any other person on 
the claimant's behalf, even though the claimant is an incompetent for 
whom a guardian is acting. The provisions of section 12(a) are 
applicable to benefits claimed or paid under any Act administered in 
whole or in part by the Board, including the Railroad Unemployment 
Insurance Act.
    There has been growing concern in the Congress to assure that 
surrogate decision-making services, including representative-payee 
services, are provided in a uniform, high quality manner which 
maximizes the potential of every individual for self-reliance and 
independence.
    The Board is currently in the process of a comprehensive program to 
review and revise its regulations. Part 348 is added at this time to 
address concerns that adequate safeguards be provided where payment of 
a benefit under the Railroad Unemployment Insurance Act is made to a 
representative payee rather than directly to the claimant. Part 348 
incorporates the extensive regulations found in part 266 of this 
chapter dealing with appointment of a representative payee under the 
Railroad Retirement Act.
    The Board previously published part 348 as a proposed rule inviting 
comment by June 10, 1996 (61 FR 16067). No comments were received. The 
Board has, in coordination with the Office of Management and Budget, 
determined that this is not a significant regulatory action for 
purposes of Executive Order 12866; therefore, no regulatory impact 
analysis is required. Information collection has been approved by the 
Office of Management and Budget under control numbers 3220-0052 and 
3220-0151.

List of Subjects in 20 CFR Part 348

    Railroad employees, Railroad unemployment insurance, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, the Board hereby adds a 
new Part 348 to title 20 of the Code of Federal Regulations as follows:

PART 348--REPRESENTATIVE PAYMENT

Sec.
348.1  Introduction.
348.2  Recognition by the Board of a person to act in behalf of 
another.

    Authority: 45 U.S.C. 355, 45 U.S.C. 231k.


Sec. 348.1  Introduction.

    (a) Explanation of representative payment. This part explains the 
principles and procedures that the Board follows in determining whether 
to make representative payment and in selecting a representative payee. 
It also explains the responsibilities that a representative payee has 
concerning the use of the funds which he or she receives on behalf of a 
claimant. A representative payee may be either a person or an 
organization selected by the Board to receive benefits on behalf of a 
claimant. A representative payee will be selected if the Board believes 
that the interest of a claimant will be served by representative 
payment rather than direct payment of benefits. Generally, the Board 
will appoint a representative payee if it determines that the claimant 
is not able to manage or direct the management of benefit payments in 
his or her interest.
    (b) Statutory authority. Section 12 of the Railroad Retirement Act, 
which is also applicable to the Railroad Unemployment Insurance Act, 
provides that every claimant shall be conclusively presumed to have 
been competent until the date on which the Board receives a notice in 
writing that a legal guardian or other person legally vested with the 
care of the person or estate of an incompetent or a minor has been 
appointed: Provided, however,

[[Page 42378]]

That despite receiving such notice, the Board may, if it finds the 
interests of such claimant to be served thereby, recognize actions by, 
conduct transactions with, and make payments to such claimant.
    (c) Policy used to determine whether to make representative 
payment. (1) The Board's policy is that every claimant has the right to 
manage his or her own benefits. However, due to mental or physical 
condition some claimants may be unable to do so. If the Board 
determines that the interests of a claimant would be better served if 
benefit payments were certified to another person as representative 
payee, the Board will appoint a representative payee in accordance with 
the procedures set forth in this part. The Board may appoint a 
representative payee even if the claimant is a legally competent 
individual. If the claimant is a legally incompetent individual, the 
Board may appoint the legal guardian or some other person as a 
representative payee.
    (2) If payment is being made directly to a claimant and a question 
arises concerning his or her ability to manage or direct the management 
of benefit payments, the Board may, if the claimant has not been 
adjudged legally incompetent, continue to pay the claimant until the 
Board makes a determination about his or her ability to manage or 
direct the management of benefit payments and the selection of a 
representative payee.


Sec. 348.2  Recognition by the Board of a person to act in behalf of 
another.

    The provisions of part 266 of this chapter shall be applicable to 
the appointment of a representative payee under this part to the same 
extent and in the same manner as they are applicable to the appointment 
of a representative payee under the Railroad Retirement Act.

    Dated: August 6, 1996.

    By Authority of the Board.

For the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 96-20785 Filed 8-14-96; 8:45 am]
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