[Federal Register Volume 67, Number 245 (Friday, December 20, 2002)]
[Proposed Rules]
[Pages 77942-77949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32051]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 429

RIN 0960-AF39


Filing Claims Under the Federal Tort Claims Act and the Military 
Personnel and Civilian Employees Claims Act

AGENCY: Social Security Administration (SSA).

ACTION: Proposed rules.

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SUMMARY: We propose to establish new regulation that would prescribe 
the procedures SSA follows when claims are filed by employees against 
SSA for personal property damage or loss incident to their service with 
SSA. This new regulation is necessary both to reflect SSA's status as 
an independent agency and to comply with the requirement in the 
Military Personnel and Civilian Employees Claims Act of 1964 (MPCECA) 
that the head of each federal agency prescribe its own regulations for 
handling such claims.
    We also propose to make several minor clarifications and 
corrections to our current procedures and practices on claims against 
the Government for damage to or loss of property or personal injury or 
death that is caused by the negligent or wrongful act or omission of an 
SSA employee. We have also rewritten the current rules on such claims 
in plain language.

DATES: To be sure that your comments are considered, we must receive 
them no later than February 18, 2003.

ADDRESSES: You may give us your comments by using: Our Internet site 
facility (i.e., Social Security Online) at http://www.ssa.gov/regulations, e-mail to [email protected]; telefax to (410) 966-2830; 
or by sending a letter to the Commissioner of Social Security, P.O. Box 
17703, Baltimore, Maryland 21235-7703. You may also deliver them to the 
Office of Process and Innovation Management, Social Security 
Administration, 2109 West Low Rise Building, 6401 Security Boulevard, 
Baltimore, Maryland 21235-6401, between 8 a.m. and 4:30 p.m. on regular 
business days. Comments are posted on our Internet site, or you may 
inspect them on regular business days by making arrangements with the 
contact person shown in this preamble.

Electronic Version

    The electronic file of this document is available on the Internet 
at http://www.access.gpo.gov/su_docs/aces/aces140.html. It is also 
available on the Internet site for SSA (i.e., ``SSA Online'') at http://www.ssa.gov/regulations.

FOR FURTHER INFORMATION CONTACT: Jonathan R. Cantor, Attorney-at-Law, 
Office of General Law, Office of the General Counsel, Social Security 
Administration, Room 617 Altmeyer Building, 6401 Security Boulevard, 
Baltimore, Maryland 21235, (410) 965-3166 or TTY (410) 966-5609.

SUPPLEMENTARY INFORMATION:

Employee Claims for Personal Property Damage or Loss

    The MPCECA, 31 U.S.C. 3721, establishes the guidelines Federal 
agencies must follow when an agency employee files a claim for personal 
property damage or loss incurred incident to his or her Federal 
service. Under the MPCECA, the head of each Federal agency is required 
to promulgate its own regulations setting forth the procedures and 
practices the agency will follow in handling such claims (31 U.S.C. 
3721(j)). The Social Security Independence and Improvements Act of 1994 
(Pub. L. 103-296) established SSA as an independent agency in the 
executive branch of the United States Government effective March 31, 
1995 and vested general regulatory authority in the Commissioner of 
Social Security. In order to comply with the requirement in the MPCECA 
that SSA have its own regulations dealing with employee claims, we 
propose to establish a new subpart B in part 429 of Title 20 of the 
Code of Federal Regulations.
    The proposed rules in new subpart B of part 429 are modeled after 
those routinely published by other Federal agencies and would contain 
the following sections:
    [sbull] Section 429.201 would explain that the new subpart applies 
to employee claims under the MPCECA, set a $40,000 limit on the amount 
of payment for a claim, and define several terms used throughout the 
subpart.
    [sbull] Section 429.202 would explain the procedures an employee 
should follow to file a claim for personal property loss or damage 
incident to service.
    [sbull] Section 429.203 would explain the circumstances under which 
a claim for personal property loss or damage is allowable.
    [sbull] Section 429.204 would describe the restrictions that apply 
to employee claims for personal property damage or loss.
    [sbull] Section 429.205 would contain a list of the types of losses 
that are not allowable under subpart B.
    [sbull] Section 429.206 would explain the procedures that are 
applicable when a claim involves a commercial carrier or an insurer.
    [sbull] Section 429.207 would explain how an employee should file a 
claim for personal property damage or loss.
    [sbull] Section 429.208 would explain how the SSA Claims Officer 
determines the amount of an award.
    [sbull] Section 429.209 would contain the maximum fee an agent or 
attorney may receive for his/her services in connection with an 
individual claim under subpart B.
    [sbull] Section 429.210 would explain the appeal process for claims 
under subpart B.
    [sbull] Section 429.211 would contain the penalties for filing 
false claims.

Tort Claims

    These proposed rules would also modify our existing rules dealing 
with the procedures SSA follows when

[[Page 77943]]

claims are asserted under the Federal Tort Claims Act (FTCA), 28 U.S.C. 
2672, for money damages against the United States for injury or death 
caused by the negligent or wrongful act or omission of any SSA 
employee. We propose to revise our regulations on tort claims as 
follows:
    [sbull] We would revise Sec.  429.101 to reflect the statutory 
provision in the FTCA that the FTCA does not apply to those tort claims 
identified in 28 U.S.C. 2680. Our current rules do not contain this 
statutory limitation.
    [sbull] We would revise Sec.  429.103 to correct the mailing 
address in this section.
    [sbull] We would revise the time limit in Sec.  429.104 for 
submitting evidence in a claim for money damages from 3 months to 60 
days. Under the FTCA, this time limit is to be determined by the agency 
and we believe 60 days constitutes a reasonable limit for submitting 
evidence after being asked to do so.
    [sbull] We would revise Sec.  429.107 to clarify an ambiguity in 
current regulations. If a claim is approved that exceeds $2500, our 
rules would be revised to specify that the payment will come from the 
Judgment Fund in the Department of the Treasury, rather than from SSA. 
This reflects current procedure and the proposed change would only 
serve to increase the efficiency of the claims process and to speed 
delivery of the payment to the claimant.
    [sbull] We propose to revise the penalties for filing false claims 
to reflect changes in both the criminal and civil False Claims Act.
    We also propose to rewrite the existing regulations on tort claims 
to comply with Executive Order 12866, as amended by Executive Order 
13258, which requires Federal agencies to write all rules in plain 
language. None of these plain language changes are substantive; they 
are merely intended to make the existing regulations more readable and 
easier to understand.

Clarity of This Proposed Rule

    As explained above, Executive Order 12866, as amended by Executive 
Order 13258, require each agency to write all rules in plain language. 
In addition to your substantive comments on this proposed rule, we 
invite your comments on how to make this proposed rule easier to 
understand.
    For example:
    [sbull] Have we organized the material to suit your needs?
    [sbull] Are the requirements in the rule clearly stated?
    [sbull] Does the rule contain technical language or jargon that is 
not clear?
    [sbull] Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rule easier to understand?
    [sbull] What else could we do to make the rule easier to 
understand?

Regulatory Procedures

Executive Order 12866

    The Office of Management and Budget (OMB) has reviewed these 
proposed rules in accordance with Executive Order 12866, as amended by 
Executive Order 13258.

Regulatory Flexibility Act

    We certify that the proposed rules, if promulgated, will not have a 
significant economic impact on a substantial number of small entities 
because it only affects individuals. Therefore, a regulatory 
flexibility analysis as provided in the Regulatory Flexibility Act, as 
amended, is not required.

Paperwork Reduction Act

    These proposed rules contain reporting requirements as shown in the 
table below. Where the public reporting burden is accounted for in 
Information Collection Requests for the various forms that the public 
uses to submit the information to SSA, a 1-hour placeholder burden is 
being assigned to the specific reporting requirement(s) contained in 
these rules.

----------------------------------------------------------------------------------------------------------------
                                                                                          Average     Estimated
                                                                 Annual     Frequency    burden per     annual
                       Section number                          number of   of response    response      burden
                                                               responses                 (minutes)      hours
----------------------------------------------------------------------------------------------------------------
429.102; 429.103............................................            1            1            1            1
429.104(a)..................................................           30            1            5          2.5
429.104(b)..................................................           25            1            5            2
429.104(c)..................................................            2            1            5          .16
429.106(b)..................................................           10            1           10          1.6
----------------------------------------------------------------------------------------------------------------

    An Information Collection Request has been submitted to OMB for 
clearance. We are soliciting comments on the burden estimate; the need 
for the information; its practical utility; ways to enhance its 
quality, utility and clarity; and on ways to minimize the burden on 
respondents, including the use of automated collection techniques or 
other forms of information technology. Comments may be faxed or mailed 
to the Social Security Administration at the following address: Social 
Security Administration, Attn: SSA Reports Clearance Officer, Rm. 1338 
Annex Building, 6401 Security Boulevard, Baltimore, MD 21235-6401. Fax 
No. 410-965-6400.
    Comments can be received for between 30 and 60 days after 
publication of this notice and will be most useful if received by SSA 
within 30 days of publication.

(Catalog of Federal Domestic Assistance Program Nos. 96.001 Social 
Security-Disability Insurance; 96.002 Social Security-Retirement 
Insurance; 96.003 Social Security-Special Benefits for Persons Aged 
72 and Over; 96.004 Social Security-Survivors Insurance; 96.005 
Special Benefits for Disabled Coal Miners; 96.006, Supplemental 
Security Income; 96.007 Social Security-Research and Demonstration)

List of Subjects in 20 CFR Part 429

    Administrative practice and procedure, Government employees, 
Indemnity payments, Tort claims.

    Dated: September 23, 2002.
Jo Anne B. Barnhart,
Commissioner of Social Security.
    For the reasons set out in the preamble, we propose to revise part 
429 of chapter III of title 20 of the Code of Federal Regulations to 
read as follows:

PART 429--ADMINISTRATIVE CLAIMS UNDER THE FEDERAL TORT CLAIMS ACT 
AND RELATED STATUTES

Subpart A--Claims Against the Government Under the Federal Tort Claims 
Act
Sec.
429.101 What is this subpart about?
429.102 How do I file a claim under this subpart?
429.103 Who may file my claim?
429.104 What evidence do I need to submit with my claim?

[[Page 77944]]

429.105 What happens when you receive my claim?
429.106 What happens if my claim is denied?
429.107 If my claim is approved, how do I obtain payment?
429.108 What happens if I accept an award, compromise or settlement 
under this subpart?
429.109 Are there any penalties for filing false claims?
429.110 Are there any limitations on SSA's authority under this 
subpart?
Subpart B--Claims Under the Military Personnel and Civilian Employees' 
Claims Act of 1964
429.201 What is this subpart about?
429.202 How do I file a claim under this subpart?
429.203 When is a claim allowable?
429.204 Are there any restrictions on what is allowable?
429.205 What is not allowable under this subpart?
429.206 What if my claim involves a commercial carrier or an 
insurer?
429.207 What are the procedures for filing a claim?
429.208 How do you determine the award? Is the settlement of my 
claim final?
429.209 Are there any restrictions on attorney's fees?
429.210 Do I have any appeal rights under this subpart?
429.211 Are there any penalties for filing false claims?

    Authority: Sect. 702(a)(5) of the Social Security Act (42 U.S.C. 
902(a)(5)); 28 U.S.C. 2672; 28 CFR 14.11; 31 U.S.C. 3721.

Subpart A--Claims Against the Government Under the Federal Tort 
Claims Act


Sec.  429.101  What is this subpart about?

    This subpart applies only to claims filed under the Federal Tort 
Claims Act, as amended, 28 U.S.C. 2671-2680 (FTCA), for money damages 
against the United States for damage to or loss of property or personal 
injury or death that is caused by the negligent or wrongful act or 
omission of an employee of the Social Security Administration (SSA). 
The loss, damage, injury or death must be caused by the employee in the 
performance of his or her official duties, under circumstances in which 
the United States, if a private person, would be liable in accordance 
with the law of the place where the act or omission occurred. This 
subpart does not apply to any tort claims excluded from the FTCA under 
28 U.S.C. 2680.
    (b) This subpart is subject to and consistent with the regulations 
on administrative claims under the FTCA issued by the Attorney General 
at 28 CFR part 14.


Sec.  429.102  How do I file a claim under this subpart?

    (a) Filing an initial claim. You must either file your claim on a 
properly executed Standard Form 95 or you must submit a written 
notification of the incident accompanied by a claim for the money 
damages in a sum certain for damage to or loss of property you believe 
occurred because of the incident. For purposes of this subpart, we 
consider your claim to be filed on the date we receive it, at the 
address specified in paragraph (c) of this section. If you mistakenly 
send your claim to another Federal agency, we will not consider it to 
be filed until the date that we receive it. If you mistakenly file a 
claim meant for another Federal agency with SSA, we will transfer it to 
the appropriate Federal agency, if possible. If we are unable to 
determine the appropriate agency, we will return the claim to you.
    (b) Filing an amendment to your claim. You may file an amendment to 
your properly filed claim at any time before the SSA Claims Officer (as 
defined in Sec.  429.201(d)(3)) makes a final decision on your claim or 
before you bring suit under 28 U.S.C. 2675(a). You must submit an 
amendment in writing and sign it. If you file a timely amendment, SSA 
has 6 months in which to finally dispose of the amended claim. Your 
option to file suit does not begin until 6 months after you file the 
amendment.
    (c) Where to obtain claims forms and file claims. You may obtain 
claims forms and must file your claim with the Social Security 
Administration, Office of the General Counsel, Administrative Claims 
Unit, Room 617 Altmeyer Building, 6401 Security Boulevard, Baltimore, 
Maryland 21235-6401.


Sec.  429.103  Who may file my claim?

    (a) Claims for damage to or loss of property. If you are the owner 
of the property interest that is the subject of the claim, you, your 
duly authorized agent, or your legal representative may file the claim.
    (b) Claims for personal injury. If you suffered the injury, you, 
your duly authorized agent, or your legal representative may file the 
claim.
    (c) Claims based on death. The executor or administrator of your 
estate or any other person legally entitled to do so may file the 
claim.
    (d) Claims for loss wholly compensated by an insurer with the 
rights of a subrogee. The insurer may file the claim. When an insurer 
presents a claim asserting the rights of a subrogee, the insurer must 
present with the claim appropriate evidence that it has the rights of a 
subrogee.
    (e) Claims for loss partially compensated by an insurer with the 
rights of a subrogee. You and the insurer may file, jointly or 
separately. When an insurer presents a claim asserting the rights of a 
subrogee, the insurer must present with the claim appropriate evidence 
that it has the rights of a subrogee.
    (f) Claims by authorized agents or other legal representatives. 
Your duly authorized agent or other legal representative may submit 
your claim, provided satisfactory evidence is submitted establishing 
that person has express authority to act on your behalf. A claim 
presented by an agent or legal representative must be presented in your 
name. If the claim is signed by the agent or legal representative, it 
must show the person's title or legal capacity and must be accompanied 
by evidence that the person has the authority to file the claim on your 
behalf as agent, executor, administrator, parent, guardian or other 
representative.


Sec.  429.104  What evidence do I need to submit with my claim?

    (a) Property damage. To support a claim for property damage, either 
real or personal, you may be required to submit the following evidence 
or information:
    (1) Proof of ownership.
    (2) A detailed statement of the amount claimed with respect to each 
item of property.
    (3) An itemized receipt of payment for necessary repairs or 
itemized written estimates of the cost of such repairs.
    (4) A statement listing date of purchase, purchase price, market 
value of the property as of date of damage, and salvage value, where 
repair is not economical.
    (5) Any other evidence or information which may have a bearing 
either on the responsibility of the United States for the injury to or 
loss of property or the damages claimed.
    (b) Personal injury. To support a claim for personal injury, 
including pain and suffering, you may be required to submit the 
following evidence or information:
    (1) A written report from your attending physician or dentist 
setting forth the nature and extent of your injury, nature and extent 
of treatment, any degree of temporary or permanent disability, your 
prognosis, period of hospitalization, and any diminished earning 
capacity. You may also be required to submit to a physical or mental 
examination by a physician employed or designated by SSA. If you submit 
a written request, we will

[[Page 77945]]

provide you with a copy of the report of the examining physician 
provided you agree to make available to SSA any other physician's 
reports made of the physical or mental condition that is the subject of 
your claim.
    (2) Itemized bills for medical, dental, and hospital expenses 
incurred, or itemized receipts of payment for such expenses.
    (3) If your prognosis reveals that you will need future treatment, 
a statement of expected duration of and expenses for such treatment.
    (4) If you claim a loss of time from employment, a written 
statement from your employer showing actual time lost from employment, 
whether you are a full or part-time employee, and wages or salary you 
actually lost.
    (5) If you claim a loss of income and are self-employed, 
documentary evidence showing the amount of earnings you actually lost. 
For example, we may use income tax returns for several years prior to 
the injury in question and the year in which the injury occurred to 
indicate or measure lost income; a statement of how much it cost you to 
hire someone to do the same work you were doing at the time of the 
injury might also be used in measuring lost income.
    (6) Any other evidence or information that may have a bearing on 
either the responsibility of the United States for the personal injury 
or the damages claimed.
    (c) Claim Based on Death. To support the claim, we need the 
following evidence or information:
    (1) An authenticated death certificate or other believable 
documentation showing cause of death, date of death, and your age at 
the time of death.
    (2) Your employment or occupation at time of death, including your 
monthly or yearly salary or earnings (if any), and the duration of your 
last employment or occupation.
    (3) Full names, addresses, birth dates, kinship, and marital status 
of your survivors, including identification of those survivors who were 
dependent upon you for support at the time of your death.
    (4) Degree of support you provided to each survivor dependent on 
you for support at the time of your death.
    (5) Your general physical and mental condition before death.
    (6) Itemized bills for medical and burial expenses incurred, or 
itemized receipts of payments for such expenses.
    (7) If damages for pain and suffering prior to death are claimed, a 
physician's detailed statement specifying the injuries suffered, 
duration of pain and suffering, any drugs administered for pain and 
your physical condition in the interval between injury and death.
    (8) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the death or the 
damages claimed.
    (d) Time limit for submitting evidence. You must furnish all the 
evidence required by this section within a reasonable time. If you fail 
to furnish all the evidence necessary to determine your claim within 60 
days after being asked to do so, we may find that you have decided to 
abandon your claim.


Sec.  429.105  What happens when you receive my claim?

    When we receive your claim, we will investigate to determine its 
validity. After our investigation, we will forward your claim to the 
SSA Claims Officer with our recommendation as to whether your claim 
should be fully or partially allowed or denied.


Sec.  429.106  What happens if my claim is denied?

    (a) If your claim is denied, the SSA Claims Officer will send you, 
your agent, or your legal representative a written notice by certified 
or registered mail. The notice will include an explanation of why your 
claim was denied and will advise you of your right to file suit in an 
appropriate U.S. District Court not later than 6 months after the date 
of the mailing of the notice if you disagree with the determination.
    (b) Before filing suit and before expiration of the 6-month period 
after the date of the mailing of the denial notice, you, your duly 
authorized agent, or your legal representative may file a written 
request with SSA for reconsideration by certified or registered mail. 
If you file a timely request for reconsideration, SSA has 6 months from 
the date you file your request in which to finally dispose of your 
claim. Your right to file suit will not begin until 6 months after you 
file your request for reconsideration. Final SSA action on your request 
for reconsideration will occur in accordance with the provisions of 
paragraph (a) of this section.


Sec.  429.107  If my claim is approved, how do I obtain payment?

    (a) Claims under $2,500. If your claim is approved, you must 
complete a ``Voucher for Payment under the Federal Tort Claims Act,'' 
Standard Form 1145. If you are represented by an attorney, the voucher 
for payment (SF 1145) must designate both you and your attorney as 
``payees''; we will then mail the check to your attorney.
    (b) Claims in excess of $2,500. If your claim is approved, SSA will 
forward the appropriate Financial Management Service (FMS) Forms 194, 
195, 196, 197, and/or 197-A to the Judgment Fund Section, Financial 
Management Service, Department of the Treasury, Room 6D37, 3700 East-
West Highway, Hyattsville, Maryland 20782. FMS will then mail the 
payment to you.


Sec.  429.108  What happens if I accept an award, compromise or 
settlement under this subpart?

    If you, your agent, or your legal representative accept any award, 
compromise or settlement under this subpart, your acceptance is final 
and conclusive on you, your agent or representative and any other 
person on whose behalf or for whose benefit the claim was filed. The 
acceptance constitutes a complete release of any claim against the 
United States and against any employee of the Government whose act or 
omission gave rise to the claim, by reason of the same subject matter.


Sec.  429.109  Are there any penalties for filing false claims?

    A person who files a false claim or makes a false or fraudulent 
statement in a claim against the United States may be imprisoned for 
not more than 5 years. (18 U.S.C. Secs. 287; 1001). In addition, that 
person may be liable for a civil penalty of not less than $5,000 and 
not more than $10,000 and damages of triple the loss or damage 
sustained by the United States, as well as the costs of a civil action 
brought to recover any penalty or damages. (31 U.S.C. Sec. 3729).


Sec.  429.110  Are there any limitations on SSA's authority under this 
subpart?

    (a) An award, compromise or settlement of a claim under this 
subpart in excess of $25,000 needs the prior written approval of the 
Attorney General or his designee. For the purposes of this paragraph, 
we treat a principal claim and any derivative or subrogated claim as a 
single claim.
    (b) An administrative claim may be adjusted, determined, 
compromised or settled under this subpart only after consultation with 
the Department of Justice when, in the opinion of SSA:
    (1) A new precedent or a new point of law is involved; or
    (2) A question of policy is or may be involved; or
    (3) The United States is or may be entitled to indemnity or 
contribution from a third party and SSA is unable to adjust the third 
party claim; or
    (4) The compromise of a particular claim, as a practical matter, 
will or may control the disposition of a related claim in which the 
amount to be paid may exceed $25,000.

[[Page 77946]]

    (c) An administrative claim may be adjusted, determined, 
compromised or settled only after consultation with the Department of 
Justice when it is learned that the United States or an employee, agent 
or cost plus contractor of the United States is involved in litigation 
based on a claim arising out of the same incident or transaction.

Subpart B--Claims Under the Military Personnel and Civilian 
Employees' Claims Act of 1964


Sec.  429.201  What is this subpart about?

    (a) Scope and Purpose. This subpart applies to all claims filed by 
or on behalf of employees of SSA for loss of or damage to personal 
property incident to their service with SSA under the Military 
Personnel and Civilian Employees Claims Act of 1964, as amended, 31 
U.S.C. 3721, (MPCECA). A claim must be substantiated and the possession 
of the property determined to be reasonable, useful or proper.
    (b) Maximum payment under this part. The maximum amount that can be 
paid for any claim under the Act is $40,000 or, in extraordinary 
circumstances, $100,000, and property may be replaced in kind at the 
discretion of the Government.
    (c) Policy. SSA is not an insurer and does not underwrite all 
personal property losses that an employee may sustain incident to 
employment. We encourage employees to carry private insurance to the 
maximum extent practicable to avoid losses which may not be recoverable 
from SSA. The procedures set forth in this subpart are designed to 
enable you to obtain the proper amount of compensation from SSA and/or 
a private insurer for the loss or damage. If you fail to comply with 
these procedures it could reduce or preclude payment of your claim 
under this subpart.
    (d) Definitions.
    (1) Quarters, unless otherwise indicated, means a house, apartment, 
or other residence that is an SSA employee's principal residence.
    (2) State, unless otherwise indicated, is defined by Sec.  
404.2(c)(5) of title 20 of the Code of Federal Regulations.
    (3) SSA Claims Officer means the SSA official designated to 
determine claims under the Act. The current designee is the Associate 
General Counsel for General Law.


Sec.  429.202  How do I file a claim under this subpart?

    (a) Who may file.
    (1) You, your duly authorized agent, your legal representative or 
your survivor may file the claim. If your survivor files the claim, the 
order of precedence for filing is spouse, child, parent, sibling.
    (2) You may not file a claim on behalf of a subrogee, assignee, 
conditional vendor or other third party.
    (b) Where to file. You must file your claim with the Social 
Security Administration, Office of the General Counsel, Administrative 
Claims Unit, 6401 Security Boulevard, Room 617 Altmeyer Building, 
Baltimore, Maryland 21235.
    (c) Evidence required. You are responsible for proving ownership or 
possession, the facts surrounding the loss or damage, and the value of 
the property. Your claim must include the following:
    (1) A written statement, signed by you or your authorized agent, 
explaining how the damage or loss occurred. This statement must also 
include:
    (i) A description of the type, design, model number or other 
identification of the property.
    (ii) The date you purchased or acquired the property and its 
original cost.
    (iii) The location of the property when the loss or damage 
occurred.
    (iv) The value of the property when lost or damaged.
    (v) The actual or estimated cost of the repair of any damaged item.
    (vi) The purpose of and authority for travel, if the loss or damage 
occurred while you were transporting your property or using a motor 
vehicle.
    (vii) All available information as to who was responsible for the 
loss or damage, if it was not you, and all information as to insurance 
contracts, whether in your name or in the name of the responsible 
party.
    (viii) Any other evidence about loss or damage that the SSA Claims 
Officer determines is necessary.
    (2) Copies of all available and appropriate documents such as bills 
of sale, estimates of repairs, or travel orders. In the case of damage 
to an automobile, you must submit at least two estimates of repair or a 
certified paid bill showing the damage incurred and the cost of all 
parts, labor and other items necessary to the repair of the vehicle or 
a statement from an authorized dealer or repair garage showing that the 
cost of such repairs exceeds the value of the vehicle.
    (3) A copy of the power of attorney or other authorization if 
someone else files the claim on your behalf.
    (4) A statement from your immediate supervisor confirming that 
possession of the property was reasonable, useful or proper under the 
circumstances and that the damage or loss was incident to your service.
    (d) Time limitations. You must file a written claim within 2 years 
after accrual of the claim. For purposes of this subpart, your claim 
accrues at the later of:
    (1) The time of the accident or incident causing the loss or 
damage;
    (2) The time the loss or damage should have been discovered by the 
claimant by the exercise of due diligence; or
    (3) Where valid circumstances prevented you from filing your claim 
earlier, the time that should be construed as the date of accrual 
because of a circumstance which prevents the filing of a claim. If war 
or armed conflict prevents you from filing the claim, your claim 
accrues on the date hostilities terminate and your claim must be filed 
within two years of that date.


Sec.  429.203  When is a claim allowable?

    (a) A claim is allowable only if you were using the property 
incident to your service with SSA, with the knowledge and consent of a 
superior authority, and:
    (1) The damage or loss was not caused wholly or partially by the 
negligent or improper action or inaction of you, your agent, the 
members of your family, or your private employee (the standard to be 
applied is that of reasonable care under the circumstances); and
    (2) The possession of the property lost or damaged and the quantity 
and the quality possessed is determined to have been reasonable, useful 
or proper under the circumstances; and
    (3) The claim is substantiated by proper and convincing evidence.
    (b) Claims that are otherwise allowable under this subpart will not 
be disallowed solely because you were not the legal owner of the 
property for which the claim is made.
    (c) Subject to the conditions in paragraph (a) of this section and 
the other provisions of this subpart, any claim you make for damage to, 
or loss of, personal property that occurs incident to your service with 
SSA may be considered and allowed. For the purpose of this subpart, if 
you were performing your official duties at an alternate work location 
under an approved flexiplace agreement, the alternate work location 
will be considered an official duty station even if it is located in 
your principal residence. The alternate work location is not considered 
to be quarters. The following are examples of the principal types of 
claims that are allowable, but these examples are not exclusive and 
other types of claims are allowable,

[[Page 77947]]

unless specifically excluded under this subpart:
    (1) Property damage in quarters or other authorized places. Claims 
are allowable for damage to, or loss of, property arising from fire, 
flood, hurricane, other natural disaster, theft, or other unusual 
occurrence, while such property is located at:
    (i) Quarters within a state that were assigned to you or otherwise 
provided in kind by the United States; or
    (ii) Any warehouse, office, working area or other place (except 
quarters) authorized or apparently authorized for the reception or 
storage of property.
    (2) Transportation or travel losses. Claims are allowable for 
damage to, or loss of, property incident to transportation or storage 
of such property pursuant to order or in connection with travel under 
orders, including property in your custody or in the custody of a 
carrier, an agent or agency of the Government.
    (3) Mobile homes. Claims may be allowed for damage to, or loss of, 
mobile homes and their contents under the provisions of paragraph 
(c)(2) of this section. Claims for structural damage to mobile homes, 
other than that caused by collision, and damage to contents of mobile 
homes resulting from such structural damage, must contain conclusive 
evidence that the damage was not caused by structural deficiency of the 
mobile home and that it was not overloaded. Claims for damage to, or 
loss of, tires mounted on mobile homes are not allowable, except in 
cases of collision, theft or vandalism.
    (4) Enemy action or public service. Claims are allowable for damage 
to, or loss of, property that directly result from:
    (i) Enemy action or threat of enemy action, or combat, guerrilla, 
brigandage, or other belligerent activity, or unjust confiscation by a 
foreign power or its nationals.
    (ii) Action you take to quiet a civil disturbance or to alleviate a 
public disaster.
    (iii) Efforts you make to save human life or Government property.
    (5) Property used for the benefit of the Government. Claims are 
allowable for damage to, or loss of, property when used for the benefit 
of the Government at the request of, or with the knowledge and consent 
of, superior authority up to the amount not compensated by private 
insurance.
    (6) Clothing and accessories. Claims are allowable for damage to, 
or loss of, clothing and accessories a person customarily wears and 
devices such as eyeglasses, hearing aids, dentures, or prosthetics.
    (7) Expenses incident to repair. You may be reimbursed for the 
payment of any sales tax and other such fees incurred in connection 
with repairs to an item. The costs of obtaining estimates of repair 
(subject to the limitations set forth in Sec.  429.204(c)) are also 
allowable.


Sec.  429.204  Are there any restrictions on what is allowable?

    Claims of the type described in this section are only allowable 
subject to the restrictions noted:
    (a) Money or currency, including coin collections. Allowable only 
when lost because of fire, flood, hurricane, other natural disaster, 
theft from quarters (as limited by Sec.  429.203(c)(1)), or under other 
reasonable circumstances in which it would be in the Government's best 
interest to make payment. In cases involving theft from quarters, the 
evidence must conclusively show that your quarters were locked at the 
time of the theft. Reimbursement for loss of money or currency is 
limited to the amount it is determined reasonable for you to have had 
in your possession at the time of the loss.
    (b) Government property. Allowable only for property owned by the 
United States for which you are financially responsible to an agency of 
the Government other than SSA.
    (c) Estimate fees. Allowable for fees paid to obtain estimates of 
repairs only when it is clear that you could not have obtained an 
estimate without paying a fee. In that case, the fee is allowable only 
in an amount determined to be reasonable in relation to the value of 
the property or the cost of the repairs.
    (d) Automobiles and motor vehicles. (1) Claims may only be allowed 
for damage to, or loss of automobiles and other motor vehicles if:
    (i) You were required to use a motor vehicle for official 
Government business (official Government business, as used here, does 
not include travel, or parking incident to travel, between quarters and 
office, quarters and an approved telecommuting center, or use of 
vehicles for the convenience of the owner. However, it does include 
travel, and parking incident thereto, between quarters and an assigned 
place of duty specifically authorized by your supervisor as being more 
advantageous to the Government); or
    (ii) Shipment of such motor vehicles was being furnished or 
provided by the Government, subject to the provisions of Sec.  429.206 
of this chapter; or
    (2) When a claim involves damage to or loss of automobile or other 
motor vehicle, you will be required to present proof of insurance 
coverage, the deductible amount, and the amount, if any, you recovered 
from the insurer. If your claim is for an amount that exceeds the 
deductible on the insurance policy, the maximum allowable recovery will 
be for the amount of the deductible. If the vehicle is uninsured, the 
maximum allowed will be $500.00.
    (e) Computers and Electronics. Claims may be allowed for loss of, 
or damage to, cellular phones, fax machines, computers and related 
hardware and software only when lost or damaged incident to fire, 
flood, hurricane, other natural disaster, theft from quarters (as 
limited by Sec.  429.203(c)(1) of this chapter), other reasonable 
circumstances in which it would be in the Government's best interest to 
make payment, or unless being shipped as a part of a change of duty 
station paid for by the Agency. In incidents of theft from quarters, it 
must be conclusively shown that your quarters were locked at the time 
of the theft.
    (f) Alternate Work Locations. When a claim is filed for property 
damage or loss at a non-Government alternate work location at which you 
are working pursuant to an approved flexiplace work agreement, you are 
required to present proof of insurance coverage, the deductible amount, 
and the amount, if any, you recovered from the insurer. If your claim 
is for an amount that exceeds the deductible on the insurance policy, 
the maximum allowable recovery will be for the amount of the 
deductible. If the property is uninsured, the maximum allowed will be 
$1000.00.


Sec.  429.205  What is not allowable under this subpart?

    Claims are not allowable for the following:
    (a) Unassigned quarters in United States. Property loss or damage 
in quarters you occupied within any state that were not assigned to you 
or otherwise provided in kind by the United States.
    (b) Business property. Property used for business or profit.
    (c) Unserviceable property. Wornout or unserviceable property.
    (d) Illegal possession. Property acquired, possessed or transferred 
in violation of the law or in violation of applicable regulations or 
directives.
    (e) Articles of extraordinary value. Valuable articles, such as 
cameras, watches, jewelry, furs or other articles of extraordinary 
value. This prohibition does not apply to articles in your personal 
custody or articles properly checked or inventoried with a common 
carrier, if you took reasonable protection or security measures.
    (f) Intangible property. Loss of property that has no extrinsic and

[[Page 77948]]

marketable value but is merely representative or evidence of value, 
such as non-negotiable stock certificates, promissory notes, bonds, 
bills of lading, warehouse receipts, insurance policies, baggage 
checks, and bank books, is not compensable. Loss of a thesis, or other 
similar item, is compensable only to the extent of the out-of-pocket 
expenses you incurred in preparing the item such as the cost of the 
paper or other materials. No compensation is authorized for the time 
you spent in its preparation or for supposed literary value.
    (g) Incidental expenses and consequential damages. The Act and this 
subpart authorize payment for loss of or damage to personal property 
only. Except as provided in Sec.  429.203(c)(7), consequential damages 
or other types of loss or incidental expenses (such as loss of use, 
interest, carrying charges, cost of lodging or food while awaiting 
arrival of shipment, attorney fees, telephone calls, cost of 
transporting you or your family members, inconvenience, time spent in 
preparation of claim, or cost of insurance premiums) are not 
compensable.
    (h) Real property. Damage to real property is not compensable. In 
determining whether an item is considered to be an item of personal 
property, as opposed to real property, normally, any movable item is 
considered personal property even if physically joined to the land.
    (i) Commercial property. Articles acquired or held for sale or 
disposition by other commercial transactions on more than an occasional 
basis, or for use in a private profession or business enterprise.
    (j) Commercial storage. Property stored at a commercial facility 
for your convenience and at your expense.
    (k) Claims for minimum amount. Loss or damage amounting to less 
than $25.


Sec.  429.206  What if my claim involves a commercial carrier or an 
insurer?

    In the event the property which is the subject of the claim was 
lost or damaged while in the possession of a commercial carrier or was 
insured, the following procedures will apply:
    (a) Whenever property is damaged, lost or destroyed while being 
shipped pursuant to authorized travel orders, the owner must file a 
written claim for reimbursement with the last commercial carrier known 
or believed to have handled the goods, or the carrier known to be in 
possession of the property when the damage or loss occurred, according 
to the terms of its bill of lading or contract, before submitting a 
claim against the Government under this subpart.
    (b) Whenever property is damaged, lost or destroyed incident to 
your service and is insured in whole or in part, you must make demand 
in writing against the insurer for reimbursement under the terms and 
conditions of the insurance coverage, before filing a claim against the 
Government.
    (c) Failure to make a demand on a carrier or insurer or to make all 
reasonable efforts to protect and prosecute rights available against a 
carrier or insurer and to collect the amount recoverable from the 
carrier or insurer may result in reducing the amount recoverable from 
the Government by the maximum amount which would have been recoverable 
from the carrier or insurer had the claim been timely or diligently 
prosecuted. However, no deduction will be made where the circumstances 
of your service preclude reasonable filing of a claim or diligent 
prosecution, or the evidence indicates a demand was impracticable or 
would have been unavailing.
    (d) After you file a claim against the carrier or insurer, you may 
immediately submit a claim under this subpart, without waiting until 
the carrier or insurer finally approves or denies your claim.
    (1) Upon submitting your claim, you must certify whether you have 
not gained any recovery from a carrier or insurer, and enclose all 
pertinent correspondence.
    (2) If the carrier or insurer has not taken final action on your 
claim, you must immediately tell the carrier or insurer to address all 
correspondence regarding the claim to the SSA Claims Officer, and you 
must provide a copy of this notice to the SSA Claims Officer.
    (3) You must advise the SSA Claims Officer of any action the 
carrier or insurer takes on the claim and, upon request, must furnish 
all correspondence, documents, and other evidence pertinent to the 
matter.
    (e) You must assign to the United States, to the extent you accept 
any payment on the claim, all rights, title and interest in any claim 
you may have against any carrier, insurer, or other party arising out 
of the incident on which your claim against the United States is based. 
After payment of the claim by the United States, you must, upon receipt 
of any payment from a carrier or insurer, pay the proceeds to the 
United States to the extent of the payment you received from the United 
States.
    (f) If you recover for the loss from the carrier or insurer before 
your claim under this subpart is settled, the amount of recovery will 
be applied to the claim as follows:
    (1) If you recover an amount that is greater than or equal to your 
total loss as determined under this subpart, no compensation is 
allowable under this subpart.
    (2) If you recover an amount that is less than such total loss, the 
allowable amount is determined by deducting the recovery from the 
amount of such total loss.
    (3) For this purpose, your total loss is determined without regard 
to the maximum payment limitations set forth in Sec.  429.201. However, 
if the resulting amount after making this deduction exceeds the maximum 
payment limitations, you will only be allowed the maximum amount set 
forth in Sec.  429.201.
    (g) In a claim arising from damage to an automobile or other motor 
vehicle, in no event may recovery exceed the reasonable deductible on 
the insurance policy.


Sec.  429.207  What are the procedures for filing a claim?

    (a) Form of claim. Your claim must be presented in writing (SSA 
Form 1481 is available for this purpose). Any writing received by the 
SSA Claims Officer within the time limits set forth in Sec.  429.202(d) 
will be accepted and considered a claim under the MPCECA if it 
constitutes a demand for compensation from SSA. A demand is required to 
be for a specific sum of money.
    (b) Award. The SSA Claims Officer is authorized to settle claims 
filed under this subpart.
    (c) Notification. The deciding official will provide you with a 
written determination on your claim.


Sec.  429.208  How do you determine the award? Is the settlement of my 
claim final?

    (a) The amount allowable for damage to or loss of any item of 
property may not exceed the lowest of:
    (1) The amount you requested for the item as a result of its loss, 
damage or the cost of its repair;
    (2) The actual or estimated cost of its repair; or
    (3) the actual value at the time of its loss, damage, or 
destruction. The actual value is determined by using the current 
replacement cost or the depreciated value of the item since you 
acquired it, whichever is lower, less any salvage value of the item in 
question, if you retain the item.
    (b) Depreciation in value is determined by considering the type of 
article involved, its cost, its condition when damaged or lost, and the 
time

[[Page 77949]]

elapsed between the date you acquired it and the date of damage or 
loss.
    (c) Current replacement cost and depreciated value are determined 
by use of publicly available adjustment rates or through use of other 
reasonable methods at the discretion of the SSA Claims Officer.
    (d) Replacement of lost or damaged property may be made in kind 
wherever appropriate at the discretion of the SSA Claims Officer.
    (e) At the discretion of the SSA Claims Officer, you may be 
required to turn over an item alleged to have been damaged beyond 
economical repair to the United States, in which case no deduction for 
salvage value will be made in the calculation of actual value.
    (f) Settlement of claims under the Act are final and conclusive.


Sec.  429.209  Are there any restrictions on attorney's fees?

    No more than 10 per cent of the amount in settlement of each 
individual claim submitted and settled under this subpart shall be paid 
or delivered to or received by any agent or attorney on account of 
services rendered in connection with that claim. A person violating 
this subsection shall be fined not more than $1,000.00. (31 U.S.C. 
3721(i))


Sec.  429.210  Do I have any appeal rights under this subpart?

    (a) Deciding Official. While you may not appeal the decision of the 
SSA Claims Officer in regard to claims under the MPCECA, the SSA Claims 
Officer may, at his or her discretion, reconsider his or her 
determination of a claim.
    (b) Claimant. You may request reconsideration from the SSA Claims 
Officer by sending a written request for reconsideration to the SSA 
Claims Officer within 30 days of the date of the original 
determination. You must clearly state the factual or legal basis upon 
which you base your request for a more favorable determination. 
Reconsideration will be granted only for reasons not available or not 
considered during the original decision.
    (c) Notification. The SSA Claims Officer will send you a written 
determination on your request for reconsideration. If the SSA Claims 
Officer elects to reconsider your claim, the final determination on 
reconsideration is final and conclusive.


Sec.  429.211  Are there any penalties for filing false claims?

    A person who files a false claim or makes a false or fraudulent 
statement in a claim against the United States may be imprisoned for 
not more than 5 years (18 U.S.C. 287; 1001). In addition, that person 
may be liable for a civil penalty of not less than $5,000 and not more 
than $10,000 and damages of triple the loss or damage sustained by the 
United States, as well as the costs of a civil action brought to 
recover any penalty or damages (31 U.S.C. 3729).

[FR Doc. 02-32051 Filed 12-19-02; 8:45 am]
BILLING CODE 4191-02-P