[Federal Register Volume 64, Number 67 (Thursday, April 8, 1999)]
[Rules and Regulations]
[Pages 17100-17101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8754]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

[Regulations No. 4]
RIN 0960-AE03


Maximum Family Benefits in Guarantee Cases

AGENCY: Social Security Administration.

ACTION: Final rule.

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SUMMARY: This final rule amends our regulations to reflect section 310 
of the Social Security Independence and Program Improvements Act of 
1994. Section 310 provides that the guaranteed primary insurance amount 
is to be used in establishing the maximum family benefit.

EFFECTIVE DATE: This final rule is effective April 8, 1999.

FOR FURTHER INFORMATION CONTACT: Bill Hilton, Social Insurance 
Specialist, Office of Program Benefits, Social Security Administration, 
3-D-25-Operations Building, 6401 Security Boulevard, Baltimore, MD 
21235-6401, 410-965-2468 or TTY 410-966-5609. 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: The 1977 Amendments to the Social Security 
Act provided a guarantee for those receiving benefits on the Social 
Security record of an insured individual who received disability 
benefits at some earlier time, then stopped receiving disability 
benefits, and subsequently has become entitled to retirement or 
disability benefits or has died. This subsequent entitlement guarantee 
provides that the basic benefit amount, called the primary insurance 
amount, of the insured individual cannot be less than the primary 
insurance amount in effect in the last month of the insured 
individual's prior entitlement to disability benefits, increased under 
certain circumstances by any cost-of-living or general benefit increase 
since that time. This primary insurance amount guarantee is described 
in Secs. 404.250 through 404.252 of our regulations.
    The primary insurance amount guarantee of the 1977 Amendments, 
however, did not extend to the maximum family benefit payable on the 
insured individual's record, which is based on the primary insurance 
amount. (The maximum family benefit is a limit on the total amount of 
monthly benefits which may be paid for any month to an insured 
individual and his or her dependents or survivors.) Thus, we were 
computing the family maximum for subsequent entitlement using either 
the insured individual's eligibility year of the prior entitlement to 
disability or the current eligibility year. As a result, the maximum 
family benefit which is payable when the insured individual becomes 
reentitled to benefits or dies may be less than the maximum family 
benefit payable in the last month of the insured individual's prior 
entitlement to disability benefits.
    Section 310 of Pub. L. 103-296, the Social Security Independence 
and Program Improvements Act of 1994, amended the Social Security Act 
so that the guaranteed primary insurance amount would be the basis for 
calculating the guaranteed maximum family benefit under a subsequent 
entitlement. The amendments made by section 310 also provide that, 
where the subsequent entitlement is to retirement or survivor benefits, 
we will determine the applicable maximum family benefit without 
applying the disability maximum family benefit cap described in 
Sec. 404.403(d-1) of our regulations. The amendments made by section 
310 apply when determining the total monthly benefits to which 
beneficiaries may be entitled based on the wages and self-employment 
income of an insured individual who, after having been previously 
entitled to disability insurance benefits, becomes entitled to 
retirement benefits, becomes reentitled to disability insurance 
benefits, or dies, after December 1995. Section 310 was effective for 
the maximum family benefit of workers who become reentitled to benefits 
or die (after previously having been entitled) after December 1995. We 
have followed this statutory amendment since it became effective. We 
are now amending Sec. 404.403 of our regulations by adding paragraph 
(g) to reflect the changes made by section 310.

Regulatory Procedures

Justification For Final Rules

    Pursuant to section 702(a)(5) of the Social Security Act, 42 U.S.C. 
902(a)(5), the Social Security Administration 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 prior notice and public comment procedures when an 
agency finds there is good cause for dispensing with such procedures on 
the basis that 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 dispensing with the prior notice and public 
comment procedures in this case. This regulation simply reflects 
statutory changes and does not involve the making of any discretionary 
policy. Therefore, opportunity for prior comment is unnecessary and we 
are issuing this change to our regulations as a final rule.
    We also find good cause for dispensing with the 30-day delay in the 
effective date of a substantive rule provided for by 5 U.S.C. 553(d). 
As explained above, this regulation merely reflects a self-executing 
statutory change that has its own effective date. We believe it would 
be misleading and contrary to the public interest for the regulation to 
show a later effective date, because we must compute benefits as 
directed by the statute in all cases.

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that this final rule does not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, it was 
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

    This final regulation imposes no new reporting/recordkeeping 
requirements subject to OMB clearance.

Regulatory Flexibility Act

    We certify that this final regulation will not have a significant 
economic

[[Page 17101]]

impact on a substantial number of small entities because it affects 
only individuals. Therefore, a regulatory flexibility analysis as 
provided in the Regulatory Flexibility Act, as amended, is not 
required.

(Catalog of Federal Domestic Assistance Program Nos. 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 30, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.
    For the reasons set out in the preamble, we are amending subpart E 
of part 404 of chapter III of title 20 of the Code of Federal 
Regulations as set forth below:

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

Subpart E--[Amended]

    1. 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), 
424a, 425, and 902(a)(5)).

    2. Section 404.403 is amended by adding paragraph (g) to read as 
follows:


Sec. 404.403  Reduction where total monthly benefits exceed maximum 
family benefits payable.

* * * * *
    (g) Person previously entitled to disability insurance benefits. If 
an insured individual who was previously entitled to disability 
insurance benefits becomes entitled to a ``second entitlement'' as 
defined in Sec. 404.250, or dies, after 1995, and the insured 
individual's primary insurance amount is determined under 
Secs. 404.251(a)(1), 404.251(b)(1), or 404.252(b), the monthly maximum 
during the second entitlement is determined under the following rules:
    (1) If the primary insurance amount is determined under 
Secs. 404.251(a)(1) or 404.251(b)(1), the monthly maximum equals the 
maximum in the last month of the insured individual's earlier 
entitlement to disability benefits, increased by any cost-of-living or 
ad hoc increases since then.
    (2) If the primary insurance amount is determined under 
Sec. 404.252(b), the monthly maximum equals the maximum in the last 
month of the insured individual's earlier entitlement to disability 
benefits.
    (3) Notwithstanding paragraphs (g)(1) and (g)(2) of this section, 
if the second entitlement is due to the insured individual's retirement 
or death, and the monthly maximum in the last month of the insured 
individual's earlier entitlement to disability benefits was computed 
under paragraph (d-1) of this section, the monthly maximum is equal to 
the maximum that would have been determined for the last month of such 
earlier entitlement if computed without regard for paragraph (d-1) of 
this section.

[FR Doc. 99-8754 Filed 4-7-99; 8:45 am]
BILLING CODE 4190-29-P