[Federal Register Volume 64, Number 58 (Friday, March 26, 1999)]
[Rules and Regulations]
[Pages 14606-14608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7271]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

RIN 0960-AD83


Benefits for Spouses, Mothers, Fathers, and Children

AGENCY: Social Security Administration (SSA).

ACTION: Final rules.

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SUMMARY: These final regulations make several clarifying technical 
changes to correct language incorporated into the regulations when they 
were recodified on June 15, 1979, which could potentially result in 
confusion regarding the applicable law and SSA policy. They also make a 
technical change to one section to reflect a longstanding SSA policy 
and to another section to correct a cross-reference.

EFFECTIVE DATE: These regulations are effective April 26, 1999.

FOR FURTHER INFORMATION CONTACT: Lois Berg, Social Insurance 
Specialist, Office of Process and Innovation Management, Social 
Security Administration, L2109 West Low Rise, 6401 Security Boulevard, 
Baltimore, MD 21235, (410) 965-1713 or TTY (410) 966-5609 for 
information about these rules. For information on eligibility, claiming 
benefits, or coverage of earnings, call our national toll-free number, 
1-800-772-1213 or TTY 1-800-325-0778.

SUPPLEMENTARY INFORMATION:

Background

    On June 15, 1979, SSA published final regulations at 44 FR 34479 
reorganizing and restating in simpler language the rules on 
requirements for entitlement to Social Security benefits, when benefits 
begin and end, how benefit amounts are determined, and how we determine 
family relationships when benefits are sought as the insured 
individual's dependent or survivor. The primary purpose of the 
recodification was to restate the rules so that they would be easier 
for the public to understand and use.
    We have found that when the regulations were recodified in June 
1979, the rewording of Secs. 404.332(b)(4), 404.341(b)(2), 404.361, and 
the introductory text in 404.366(b) inadvertently resulted in 
regulations that could be interpreted as inaccurately reflecting either 
the statute or the operating policies followed by SSA. Those sections 
could cause confusion regarding the applicable law and SSA policy. 
Therefore, in these final regulations, we are making clarifying 
technical corrections to those sections.
    We are amending Sec. 404.357 to reflect a longstanding SSA policy 
concerning stepchildren set forth in Social Security Ruling (SSR) 60-9, 
C.B. 1960-1965, p. 128. In addition, we are amending Sec. 404.406 to 
correct a cross-reference.

Explanation of Revisions

    Sections 202(b)(1)(E)-(K) and 202(c)(1)(E)-(K) of the Social 
Security Act (the Act) specify when wife's and husband's (``spouse's'') 
benefits end, and section 202(g)(1) of the Act specifies when mother's 
and father's benefits end. In these final regulations, we are amending 
Secs. 404.332(b)(4) and 404.341(b)(2) to more accurately reflect 
sections 202(b)(1)(I), 202(c)(1)(I) and 202(g)(1) of the Act. As 
revised by the June 1979 recodification, Secs. 404.332(b)(4) and 
404.341(b)(2) of the regulations may be incorrectly interpreted to mean 
that the spouse's, mother's or father's benefits will terminate when 
the child in that beneficiary's care becomes age 16 (unless disabled) 
or is no longer entitled. This is true only if there is no other child 
entitled to benefits on the

[[Page 14607]]

insured's earnings record who is under age 16 or disabled. If there is 
another entitled child who is not in the care of the spouse, mother or 
father, benefits are subject to deductions, but are not terminated, 
when the entitled child who is in the care of the spouse, mother or 
father attains age 16 or is no longer entitled. Therefore, in 
Secs. 404.332(b)(4) and 404.341(b)(2), we clarify that benefits will 
end when there is no longer any child of the insured under age 16 or 
disabled who is entitled to benefits on the insured's record.
    Section 202(d)(3) of the Act explains the circumstances under which 
a child will be deemed dependent on his or her natural or adopting 
parent. As revised by the June 1979 recodification, Sec. 404.361 states 
that if a child is adopted by someone other than the natural parent 
(``the insured'') during that natural parent's lifetime and the child 
files an application for benefits after that adoption, he or she must 
meet certain actual dependency requirements. This is not entirely 
correct under the statute. We are amending Sec. 404.361 to address the 
situation in which the insured had a period of disability that lasted 
until the insured became entitled to disability or old-age benefits or 
died. As amended, Sec. 404.361 will reflect that, under the Act, a 
child is deemed dependent on the insured, and need not meet the actual 
dependency requirements, if the child is adopted during the insured's 
lifetime by someone other than the insured after the insured's 
disability onset date.
    We are amending the introductory text in Sec. 404.366(b) to change 
the references ``Secs. 404.362 through 404.364'' shown in that section 
to ``Secs. 404.362(c)(1) and 404.363.'' This will correct another 
technical error which occurred in the June 1979 recodification.
    In order to be entitled to child's benefits, section 202(d)(1)(C) 
of the Act requires that an individual must be dependent (or deemed 
dependent) upon the insured individual at a particular time, (e.g., at 
the time the child applies for benefits). To meet this requirement, 
certain children are required by the Act to have been receiving ``one-
half support'' from the insured individual at that time. To determine 
if that condition is met, SSA determines whether the insured was 
providing one-half support for a ``reasonable period'' prior to the 
applicable time. As stated in Sec. 404.366(b), ordinarily, we consider 
a reasonable period to be the 12-month period immediately preceding the 
time when one-half support must be met. However, based on 
Sec. 404.366(b), in some situations, SSA may set a reasonable period at 
less than 12 months.
    In the June 1979 recodification, the introductory text in 
Sec. 404.366(b) referred to ``Secs. 404.362 through 404.364'' 
concerning the reasonable period for meeting the one-half support 
requirement for a child. These references were over-inclusive because 
Secs. 404.362(b) and 404.364 reflect sections 202(d)(8) and (9) of the 
Act which mandate that dependency must be met by certain child 
claimants for the entire one-year period before the applicable time. 
The statutorily mandated period applies to a child age 18 or over who 
is adopted after the insured individual's entitlement and to a 
grandchild or stepgrandchild (except for those born during the 
applicable one-year period). SSA may not set a shorter period in these 
two situations. The revised references to Secs. 404.362(c)(1) and 
404.363 reflect that SSA may set a shorter period for children adopted 
by the insured's surviving spouse, and for the insured's stepchildren. 
The statute does not require dependency for an entire one year period 
for these children, and the ``reasonable period'' rules apply in 
determining whether one-half support is met for them.
    We are also amending Sec. 404.357 to reflect the longstanding SSA 
policy that a child conceived before and born after the marriage of the 
child's parent to an insured individual may be entitled as the 
stepchild of the insured, if the insured is not the child's natural 
parent. This policy is set forth in SSR 60-9, C.B. 1960-1965, p. 128.
    Finally, we are amending Sec. 404.406 to correct a technical error. 
We are changing the reference in the second sentence from Sec. 404.607 
to Sec. 404.603, which is the correct reference.

Regulatory Procedures

Justification for Final Rules

    Pursuant to section 702(a)(5) of the Act, SSA follows the 
Administrative Procedure Act (APA) rulemaking procedures specified in 5 
U.S.C. 553 in the development of its regulations. The APA provides 
exceptions to its notice and public comment procedures when an agency 
finds there is good cause for dispensing with such procedures because 
they are impracticable, unnecessary, or contrary to the public 
interest. We have determined that, under 5 U.S.C. 553(b)(B), good cause 
exists for waiver of the notice of proposed rulemaking and public 
comment procedures for these amendments to our regulations. Opportunity 
for public comment prior to the effectuation of the amendments is 
unnecessary. These amendments to the regulations contain no changes in 
SSA policy and only make clarifying technical changes that would 
correct inadvertent errors, would reflect more accurately provisions in 
sections 202(b)(1)(I), 202(c)(1)(I), 202(d)(1)(C), 202(d)(3), (8) and 
(9), 202(g)(1) and 216(e) of the Act and would reflect a longstanding 
SSA policy set forth in SSR 60-9, C.B. 1960-1965, p. 128. We believe 
that the public would have little interest in these minor, technical 
amendments. Therefore, we are issuing these changes to our regulations 
as final rules.

Regulatory Flexibility Act

    We certify that these final regulations will not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Thus, a regulatory flexibility analysis as 
provided in the Regulatory Flexibility Act, as amended, is not 
required.

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, they 
were not subject to OMB review. We have also determined that these 
rules meet the plain language requirement of Executive Order 12866 and 
the President's memorandum of June 1, 1998.

Paperwork Reduction Act

    These regulations impose no reporting/recordkeeping requirements 
necessitating clearance by OMB.

(Catalog of Federal Domestic Assistance Program No. 96.001 Social 
Security--Disability Insurance; 96.002 Social Security--Retirement 
Insurance; and 96.004 Social Security--Survivors Insurance.)

List of Subjects in 20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, 
Old-Age, Survivors and Disability Insurance, Reporting and 
recordkeeping requirements, Social security.

    Dated: March 16, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.

    For the reasons set forth in the preamble, subparts D and E of part 
404 of chapter III of title 20 of the Code of Federal Regulations are 
amended as set forth below.

[[Page 14608]]

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950-        )

Subpart D--[Amended]

    1. The authority citation for subpart D of part 404 continues to 
read as follows:

    Authority: Secs. 202, 203(a) and (b), 205(a), 216, 223, 225, 
228(a)-(e), and 702(a)(5) of the Social Security Act (42 U.S.C. 402, 
403(a) and (b), 405(a), 416, 423, 425, 428(a)-(e), and 902(a)(5)).

    2. Section 404.332 is amended by revising paragraph (b)(4) to read 
as follows:


Sec. 404.332  When wife's and husband's benefits begin and end.

* * * * *
    (b) * * *
    (4) If you are under age 62, there is no longer a child of the 
insured who is under age 16 or disabled and entitled to child's 
benefits on the insured's earnings record. (See paragraph (c) of this 
section if you were entitled to wife's or husband's benefits for August 
1981 on the basis of having a child in care.) (If you no longer have in 
your care a child who is under age 16 or disabled and entitled to 
child's benefits on the insured's earnings record, your benefits may be 
subject to deductions as provided in Sec. 404.421.)
* * * * *
    3. Section 404.341 is amended by revising paragraph (b)(2) to read 
as follows:


Sec. 404.341  When mother's and father's benefits begin and end.

* * * * *
    (b) * * *
    (2) There is no longer a child of the insured who is under age 16 
or disabled and entitled to a child's benefit on the insured's earnings 
record. (See paragraph (c) of this section if you were entitled to 
mother's or father's benefits for August 1981.) (If you no longer have 
in your care a child who is under age 16 or disabled and entitled to 
child's benefits on the insured's earnings record, your benefits may be 
subject to deductions as provided in Sec. 404.421.)
* * * * *
    4. Section 404.357 is amended by adding a new sentence following 
the first sentence to read as follows:


Sec. 404.357  Who is the insured's stepchild?

    * * * You also may be eligible as a stepchild if you were conceived 
prior to the marriage of your natural parent to the insured but were 
born after the marriage and the insured is not your natural parent. * * 
*
    5. Section 404.361 is revised to read as follows:


Sec. 404.361  When a natural child is dependent.

    (a) Dependency of natural child. If you are the insured's natural 
child, as defined in Sec. 404.355, you are considered dependent upon 
him or her, except as stated in paragraph (b) of this section.
    (b) Dependency of natural child legally adopted by someone other 
than the insured.
    (1) Except as indicated in paragraph (b)(2) of this section, if you 
are legally adopted by someone other than the insured (your natural 
parent) during the insured's lifetime, you are considered dependent 
upon the insured only if the insured was either living with you or 
contributing to your support at one of the following times:
    (i) When you applied;
    (ii) When the insured died; or
    (iii) If the insured had a period of disability that lasted until 
he or she became entitled to disability or old-age benefits or died, at 
the beginning of the period of disability or at the time he or she 
became entitled to disability or old-age benefits.
    (2) You are considered dependent upon the insured (your natural 
parent) if:
    (i) You were adopted by someone other than the insured after you 
applied for child's benefits; or
    (ii) The insured had a period of disability that lasted until he or 
she became entitled to old-age or disability benefits or died, and you 
are adopted by someone other than the insured after the beginning of 
that period of disability.
    6. Section 404.366 is amended by revising the sixth sentence of the 
introductory text in paragraph (b) to read as follows:


Sec. 404.366  ``Contributions for support,'' ``one-half support,'' and 
``living with'' the insured defined--determining first month of 
entitlement.

* * * * *
    (b) * * * Ordinarily we consider a reasonable period to be the 12-
month period immediately preceding the time when the one-half support 
requirement must be met under the rules in Secs. 404.362(c)(1) and 
404.363 (for child's benefits), in Sec. 404.370(f) (for parent's 
benefits) and in Sec. 404.408a(c) (for benefits where the Government 
pension offset may be applied). * * *
* * * * *
    7. The authority citation for subpart E of part 404 continues to 
read as follows:

    Authority: Secs. 202, 203, 204(a) and (e), 205(a) and (c), 
222(b), 223(e), 224, 225, and 702(a)(5) of the Social Security Act 
(42 U.S.C. 402, 403, 404(a) and (e), 405(a) and (c), 422(b), 423(e), 
425, and 902(a)(5)).

    8. Section 404.406 is amended by revising the second sentence to 
read as follows:


Sec. 404.406  Reduction of maximum because of retroactive effect of 
application for monthly benefits.

    * * * An application may also be effective (retroactively) for 
benefits for months before the month of filing (see Sec. 404.603). * * 
*

[FR Doc. 99-7271 Filed 3-25-99; 8:45 am]
BILLING CODE 4190-29-P