[Federal Register Volume 65, Number 133 (Tuesday, July 11, 2000)]
[Notices]
[Pages 42793-42794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17140]


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SOCIAL SECURITY ADMINISTRATION


Rescission of Social Security Acquiescence Ruling 87-4(8); 
Iamarino v. Heckler

AGENCY: Social Security Administration.

ACTION: Notice of rescission of Social Security Acquiescence Ruling 87-
4(8)--Iamarino v. Heckler, 795 F.2d 59 (8th Cir. 1986).

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SUMMARY: In accordance with 20 CFR 404.985(e), 416.1485(e) and 
402.35(b)(2), the Commissioner of Social Security gives notice of the 
rescission of Social Security Acquiescence Ruling 87-4(8).

EFFECTIVE DATE: August 10, 2000.

FOR FURTHER INFORMATION CONTACT: Gary Sargent, Litigation Staff, Social 
Security Administration, 6401 Security Boulevard, Baltimore, MD 21235-
6401, (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 404.985(e)(4) and 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Security Acquiescence Ruling may be rescinded as obsolete if we 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 August 31, 1987, we issued Acquiescence Ruling 87-4(8) to 
reflect the holding in Iamarino v. Heckler, 795 F.2d 59 (8th Cir. 
1986), that 20 CFR 404.1574 and 416.974 provide a ``middle ground,'' 
where no positive or negative presumption of substantial gainful 
activity applies, for evaluating sheltered workshop earnings at the 
first step of the sequential evaluation process for determining 
disability. The court noted that because SSA's regulations for 
evaluating earnings from competitive employment (i.e., nonsheltered 
workshop earnings) provided a ``middle ground'' where no presumption 
applies, between the upper and lower earnings limits specified in the 
regulations, the same regulations must also provide a ``middle ground'' 
where no presumption applies for sheltered workshop earnings. 
Accordingly, the court found that sheltered workshop earnings that 
exceed the upper substantial gainful activity threshold amount in these 
regulations fall in a ``middle ground'' where no presumption applies 
that an individual is engaging in substantial gainful activity.
    Concurrent with the rescission of this Ruling, we are publishing 
our final rules amending sections 404.1574 and 416.974 of Social 
Security Regulations Nos. 4 and 16 (20 CFR 404.1574 and 416.974) to 
clarify that the ``middle ground'' where no positive or negative 
presumption of substantial gainful activity applies because it lies 
below the upper threshold amount for substantial gainful activity in 
paragraphs 404.1574(b)(2) and 416.974(b)(2), and above the lower 
threshold amount in paragraphs 404.1574(b)(3) and 416.974(b)(2), 
relates only to earnings from competitive employment. We also have 
clarified these regulations to provide that sheltered workshop earnings 
that do not exceed the upper threshold amount listed in paragraphs 
404.1574(b)(2) and 416.974(b)(2), are presumed not to be substantial 
gainful activity even when the earnings fall within the ``middle 
ground'' range for individuals engaged in competitive employment.

[[Page 42794]]

    Because the changes in the regulations address the Iamarino court's 
concerns, and explain that sheltered workshop earnings that fall 
between the upper and lower earnings limits specified in the 
regulations (in the ``middle ground'' range) for individuals engaged in 
competitive employment are presumed not to be substantial gainful 
activity, we are rescinding Acquiescence Ruling 87-4(8). The final 
rules and this rescission restore uniformity to our nationwide system 
of rules in accordance with our commitment to the goal of administering 
our programs through national standards as discussed in the preamble to 
the 1998 acquiescence regulations, 63 FR 24927 (May 6, 1998).

(Catalog of Federal Domestic Assistance Program Nos. 96.001 Social 
Security--Disability Insurance; 96.002 Social Security--Retirement 
Insurance; 96.004 Social Security--Survivors Insurance; 96.005 
Special Benefits for Disabled Coal Miners; 96.006 Supplemental 
Security Income)

    Dated: March 17, 2000.
Kenneth S. Apfel,
Commissioner of Social Security.
[FR Doc. 00-17140 Filed 7-10-00; 8:45 am]
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