[Federal Register Volume 66, Number 144 (Thursday, July 26, 2001)]
[Proposed Rules]
[Pages 38963-38965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18593]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960-AF53


Collection of Supplemental Security Income Overpayments From 
Special Benefits for Certain World War II Veterans

AGENCY: Social Security Administration.

ACTION: Proposed rule.

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SUMMARY: We propose to revise our regulations dealing with the recovery 
of overpayments under the Supplemental Security Income (SSI) program 
under title XVI of the Social Security Act (the Act). The proposed 
revisions would modify our regulations to permit SSA to recover SSI 
overpayments by adjusting the amount of Special Benefits for Certain 
World War II Veterans (SVB) payable under title VIII of the Act. This 
collection practice would be limited to individuals who are not 
currently eligible to receive any cash payments under any provision of 
title XVI or any State supplementary payments that we administer under 
title XVI. Also, the amount of SVB to be withheld in a month to recover 
the SSI overpayment would not exceed 10 percent unless the overpaid 
person requests us to withhold a different amount or the overpaid 
person (or his or her spouse) willfully misrepresented or concealed 
material information in connection with the SSI overpayment. If there 
were willful misrepresentation or concealment, the entire SVB amount 
will be withheld to recover the SSI overpayment. These revisions would 
permit SSA to recover SSI overpayments from SVB payable to the overpaid 
individual when SSI cash benefits are not payable.

DATES: To be sure your comments are considered, we must receive them no 
later than September 24, 2001.

ADDRESSES: Give us your comments using our Internet site facility 
(i.e., Social Security Online) at http://www.ssa.gov/regulations/. 
Comments could also be submitted in writing to the Commissioner of 
Social Security, P.O. Box 17703, Baltimore, Maryland 21235-7703, sent 
by telefax to (410) 966-2830, sent by e-mail to [email protected] or 
delivered to the Office of Process and Innovation Management, Social 
Security Administration, 2109 West Low Rise Building, 6401 Security 
Boulevard, Baltimore, Maryland 21235-6401.

FOR FURTHER INFORMATION CONTACT: Patricia Hora, Social Insurance 
Specialist, Office of Process and Innovation Management, Social 
Security Administration, 6401 Security Boulevard, Baltimore, Maryland 
21235-6401, (410) 965-7183 or TTY (410) 966-5609 for information about 
these rules. For information on eligibility or claiming benefits, call 
our national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778.

SUPPLEMENTARY INFORMATION: On December 14, 1999, Pub. L. 106-169, the 
``Foster Care Independence Act of 1999'' was enacted. Section 251(a) of 
Pub. L. 106-169 added title VIII to the Social Security Act, 
establishing a new benefit program--Special Benefits for Certain World 
War II Veterans. Under this program, certain World War II veterans who 
were eligible for SSI for December 1999 and for the month of 
application for SVB, and who meet other criteria specified in the law, 
may be entitled to SVB for each month in which they reside outside the 
United States.
    Section 251(b) of Pub. L. 106-169 amended section 1147 of the Act. 
Prior to the enactment of Pub. L. 106-169, section 1147 of the Act 
(added by section 8 of Pub. L. 105-306) allowed SSA to recover SSI 
overpayments from an overpaid individual who was no longer receiving 
SSI cash payments by reducing the amount of any benefits payable under 
title II of the Act. Section 251(b) of Pub. L. 106-169 amended section 
1147 to allow recovery of SSI overpayments from title VIII benefits, as 
well as title II benefits, payable in a month. Throughout this 
preamble, this type of overpayment recovery is called ``cross-program 
recovery.'' With certain exceptions, the amount of the reduction 
permitted under cross-program recovery cannot exceed 10 percent of the 
benefits payable in a month.

Explanation of Proposed Changes

    We are publishing elsewhere in today's Federal Register final rules 
that establish cross-program recovery of title XVI benefits from title 
II benefits payable to the overpaid person in a month (which were 
published as proposed rules on October 5, 2000 at 65 FR 58970). We 
propose to revise Secs. 416.570 and 416.572, as set forth in these 
final rules, to address cross-program recovery of title XVI 
overpayments from SVB payable to the overpaid person in a month. We 
describe below the specific changes we propose to make in Secs. 416.570 
and 416.572.
    In order to implement cross-program recovery from SVB, we would 
modify several provisions of Sec. 416.572. Paragraph (a) would be 
revised as follows:
     We would revise the definition of ``cross-program 
recovery'' to include the process of collecting title XVI overpayments 
from SVB payable in a month to the overpaid individual.
     We would revise the definition of ``benefits payable in a 
month'' to include the amount of SVB a person would actually receive in 
a given month. Under our proposed definition, ``benefits payable in a 
month'' would include the monthly SVB amount and any past due SVB a 
person would receive, but would not include the amount of the reduction 
for benefit income required by section 805 of the Act (42 U.S.C. 1005). 
We would add to the definition an example to show how we would 
determine SVB payable in a month.

[[Page 38964]]

    We would revise paragraph (b) of Sec. 416.572 to explain that we 
may use cross-program recovery to collect title XVI overpayments if the 
overpaid person is not currently receiving SSI cash benefits and is 
receiving benefits under title II or title VIII of the Act. 
Consequently, if a person whose title II and/or title VIII benefits are 
being adjusted to recover a title XVI overpayment again becomes 
eligible for SSI benefits, cross-program recovery would end with the 
month in which SSI cash benefits resume. We would begin collecting the 
remaining title XVI overpayment by monthly adjustment of SSI payments. 
We would also revise paragraph (b) to explain that:
     We would not start cross-program recovery from SVB if we 
already are adjusting SVB to recover an SVB overpayment, and
     We would not start cross-program recovery from title II 
benefits if we are already adjusting title II benefits to recover an 
SVB or title II overpayment.
    Adjustment of title VIII and title II benefits to recover SVB 
overpayments is authorized by section 808(a)(1) of the Act (42 U.S.C. 
1008(a)(1)).
    Paragraph (c) of Sec. 416.572 lists the information that we would 
include in the notice sent to a person whose benefits would be subject 
to cross-program recovery. Paragraph (c)(2) requires that we include 
the specific amount we would withhold from title II benefits payable in 
a month to recover the title XVI overpayment. We would revise paragraph 
(c)(2) to add that the information would include the amount we would 
withhold from SVB payable in a month. The notice would state that the 
person may ask us to review our determination that he or she still owes 
the overpayment balance and that he or she may ask us to waive 
collection of the overpayment balance. The notice will also inform the 
individual how to request a waiver. Unless the overpaid person or that 
person's spouse willfully misrepresented or concealed material 
information in connection with the overpayment, the notice would also 
state that the person may request that we withhold from SVB a different 
amount than the amount stated in the notice.
    Paragraph (d) of Sec. 416.572 explains that we would begin to 
withhold no sooner than 30 days after the date of the notice. If the 
individual would pay the entire overpayment balance within that 30-day 
period, we would not impose cross-program recovery. If within the 30-
day period the person asks us to review the determination that he or 
she still owes us the overpayment balance and/or requests us to waive 
recovery of the overpayment balance, we would not begin cross-program 
recovery until we review the matter(s) and notify the person of our 
decision(s). If within the 30-day period, the person requests that we 
withhold a different amount, we would not begin cross-program recovery 
until we determine the amount we would withhold. These provisions would 
apply when we would pursue cross-program recovery to collect SSI 
overpayments from SVB payable under title VIII of the Act.
    We would revise paragraph (e) of Sec. 416.572 to explain that when 
cross-program recovery is applied, we would collect the overpayment at 
a rate of 10 percent of the title II benefits and SVB payable in any 
month, respectively. However, we would collect at a rate of 100 percent 
of the title II benefits and SVB payable in any month if the overpaid 
person (or his or her spouse) willfully misrepresented or concealed 
material information in connection with the overpayment.

Other Revisions

    We would revise the language of Sec. 416.570 to state that we would 
not adjust title XVI benefits to recover SVB overpayments without a 
specific request from the SSI beneficiary. Without the consent of the 
overpaid person, we have no authority to recover SVB overpayments from 
SSI payments.

Clarity of This Regulation

    Executive Order (E.O.) 12866 and the President's memorandum of June 
1, 1998, require each agency to write all rules in plain language. In 
addition to your substantive comments on these proposed rules, we 
invite your comments on how to make these proposed rules easier to 
understand.
    For example:
     Have we organized the material to suit your needs?
     Are the requirements in the rules clearly stated?
     Do the rules contain technical language or jargon that is 
unclear?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rules easier to understand?
     Would more (but shorter) sections be better?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     What else could we do to make the rules easier to 
understand?

Electronic Version

    The electronic file of this document is available on the date of 
publication in the Federal Register on the Internet site for the 
Government Printing Office: http://www.access.gpo.gov/su_docs/aces/aces140.html. It is also available on the Internet site for SSA (i.e., 
Social Security Online): http://www.ssa.gov/.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these final regulations meet the criteria for a 
significant regulatory action under Executive Order (E.O.) 12866. Thus, 
the regulations were reviewed by OMB. However, the estimated amounts of 
the savings or costs involved do not cross the threshold for an 
economically significant regulation as defined in E.O. 12866. The 
estimated program savings from increased collections as a result of 
implementation of section 251(b)(7) of Pub. L. 106-169 are negligible, 
less than $2.5 million over the next 10 years. The administrative 
impact is also negligible.

Regulatory Flexibility Act

    We certify that these proposed rules would 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.

Paperwork Reduction Act

    These proposed regulations would impose no new reporting or 
recordkeeping requirements requiring OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social 
Security-Disability Insurance; 96.006, Supplemental Security Income)

List of Subjects in 20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI).

    Dated: May 7, 2001.
Larry G. Massanari,
Acting Commissioner of Social Security.

    For the reasons set forth in the preamble, we propose to amend 
Chapter III of Title 20, Code of Federal Regulations as follows:

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED (PRIVATE)

    1. The authority citation for Subpart E of Part 416 is amended to 
read as follows:


[[Page 38965]]


    Authority: Secs. 702(a)(5), 1147, 1601, 1602, 1611(c) and (e), 
and 1631(a)-(d) and (g) of the Social Security Act (42 U.S.C. 
902(a)(5), 1320b-17, 1381, 1381a, 1382(c) and (e), and 1383(a)-(d) 
and (g)); 31 U.S.C. 3720A.

    2. Section 416.570 is amended by revising the third sentence to 
read:


Sec. 416.570  Adjustment-general rule.

     * * * Absent a specific request from the person from whom recovery 
is sought, no overpayment made under title II, title VIII or title 
XVIII of the Act will be recovered by adjusting SSI benefits.
* * * * *
    3. Section 416.572 is amended by revising the heading and 
paragraphs (a), (b), (c)(2), and (e) to read as follows:


Sec. 416.572  Are title II benefits and title VIII benefits subject to 
adjustment to recover title XVI overpayments?

    (a) Definitions--(1) Cross-program recovery. Cross-program recovery 
is the process that we will use to collect title XVI overpayments from 
benefits payable to you in a month under title II and title VIII of the 
Act.
    (2) Benefits payable in a month. For purposes of this section, 
benefits payable in a month means the amount of title II or title VIII 
benefits that you would actually receive in that month. For title II 
benefits, it includes your monthly benefit and any past due benefits 
after any reductions or deductions listed in Sec. 404.401(a) and (b) of 
this chapter. For title VIII benefits, it includes your monthly benefit 
and any past due benefits after any reduction by the amount of income 
for the month required by section 805 of the Act.

    Title II Example: A person is entitled to monthly title II 
benefits of $1000. The first benefit payment the person would 
receive includes past-due benefits of $1000. The amount of benefits 
payable in that month for purposes of cross-program recovery is 
$2000. So, if we were recovering 10 percent of that month's benefit, 
we would be recovering $200. The monthly benefit payable for 
subsequent months is $1000. So, if we were recovering 10 percent of 
that amount, we would be recovering $100. If $200 would be deducted 
from the person's title II benefits in a later month because of 
excess earnings as described in Secs. 404.415 and 404.416 of this 
chapter, the benefit payable in that month for purposes of cross-
program recovery would be $800. So, if we were recovering 10 percent 
of that month's benefit, we would be recovering $80.
    Title VIII Example: A person qualifies for monthly title VIII 
benefits of $384. The person is receiving a monthly pension payment 
of $150 from his employer. The title VIII benefit payable in a 
particular month would be reduced by $150 under section 805 of the 
Act (42 U.S.C. 1005). The title VIII benefit payable and subject to 
withholding in that month for purposes of cross-program recovery 
would be $234. So, if we were recovering 10 percent of that month's 
benefit, we would be recovering $23.40.

    (3) Not currently eligible for SSI cash benefits. This means that a 
person is not receiving any cash payment, including State supplementary 
payments, under any provision of title XVI of the Act or under section 
212(b) of Pub. L. 93-66.
    (b) When we may collect title XVI overpayments using cross-program 
recovery. (1) Except as provided in paragraphs (b)(2) through (4) of 
this section, we may use cross-program recovery to collect a title XVI 
overpayment you owe if:
    (i) You are not currently eligible for SSI cash benefits, and
    (ii) You are receiving title II or title VIII benefits.
    (2) We will not start cross-program recovery against your title II 
or title VIII benefits if you are refunding your title XVI overpayment 
by regular monthly installments.
    (3) We will not start cross-program recovery against your title II 
benefits if we are adjusting your title II benefits to recover a title 
II overpayment under Sec. 404.502 of this chapter or a title VIII 
overpayment under section 808(a)(1) of the Act (42 U.S.C. 1008(a)(1)).
    (4) We will not start cross-program recovery against your title 
VIII benefits if we are adjusting your title VIII benefits to recover a 
title VIII overpayment under section 808(a)(1) of the Act (42 U.S.C. 
1008(a)(1)).
    (c) * * *
    (2) We will withhold a specific amount from the title II benefits 
and/or title VIII benefits payable to you in a month (see paragraph (e) 
of this section);
* * * * *
    (e) Rate of withholding. (1) We will collect the overpayment at the 
rate of 10 percent of the title II benefits and title VIII benefits 
payable to you in any month, unless:
    (i) You request and we approve a different rate of withholding, or
    (ii) You or your spouse willfully misrepresented or concealed 
material information in connection with the overpayment.
    (2) In determining whether to grant your request that we withhold 
at a lower rate than 10 percent of the title II benefits payable in a 
month, we will use the criteria applied under Sec. 416.571 to similar 
requests about withholding from title XVI benefits.
    (3) If you or your spouse willfully misrepresented or concealed 
material information in connection with the overpayment, we will 
collect the overpayment at the rate of 100 percent of the title II 
benefits and title VIII benefits payable in any month. We will not 
collect at a lesser rate. (See Sec. 416.571 for what we mean by 
concealment of material information.)

[FR Doc. 01-18593 Filed 7-25-01; 8:45 am]
BILLING CODE 4191-02-P