[Federal Register Volume 68, Number 129 (Monday, July 7, 2003)]
[Proposed Rules]
[Pages 40213-40218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16859]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulation Nos. 4 and 16]
RIN: 0960-AF47


Federal Old-Age, Survivors and Disability Insurance; Determining 
Disability and Blindness; Clarification of the Education and Previous 
Work Experience Categories in the Medical-Vocational Rules

AGENCY: Social Security Administration.

ACTION: Proposed rules.

-----------------------------------------------------------------------

SUMMARY: We propose revising our regulations to clarify how we evaluate 
your work experience and how we evaluate illiteracy or inability to 
communicate in English when we decide whether you are disabled.
    We propose these revisions to ensure that our regulations clearly 
reflect our longstanding policy that, if you have skilled or 
semiskilled work experience, but you cannot use your skills in other 
work (i.e., your skills are not transferable to other work), your 
ability to adjust to other work is no greater than it would be if you 
had only unskilled work experience.
    We also propose revisions to clarify which medical-vocational rules 
apply if you are illiterate or unable to communicate in English; who we 
consider to be ``illiterate or unable to communicate in English''; and 
how we evaluate your claim if you are illiterate, unable to communicate 
in English, or both.

DATES: To be sure that your comments are considered, submit them no 
later than September 5, 2003.

ADDRESSES: You may give us your comments by: using our Internet site 
facility (i.e., Social Security Online) at: http://policy.ssa.gov/pnpublic.nsf/LawsRegs; e-mail to [email protected]; by telefax to 
(410) 966-2830, or, by letter to the Commissioner of Social Security, 
P.O. Box 17703, Baltimore, Maryland 21235-7703. You may also deliver 
them to the Office of Regulations, Social Security Administration, 100 
Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, 
between 8 a.m. and 4:30 p.m. on regular business days. Comments are 
posted on our Internet site, at http://policy.ssa.gov/pnpublic.nsf/LawsRegs or you may inspect them on regular business days by making 
arrangements with the contact person shown in this preamble.

FOR FURTHER INFORMATION CONTACT: Martin Sussman, Regulations Officer, 
Social Security Administration, Office of Regulations, 100 Altmeyer 
Building, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, [email protected], (410) 965-1767, or TTY 
(410) 966-5609 for information about these rules. For information on 
eligibility or filing for benefits, call our national toll-free number, 
1-800-772-1213 or TTY 1-800-325-0778 or visit our Internet Web site, 
Social Security Online, at www.ssa.gov.

SUPPLEMENTARY INFORMATION:

What Programs Would These Proposed Regulations Affect?

    These proposed regulations would affect disability determinations 
and decisions we make under title II and title XVI of the Social 
Security Act (the Act). In addition, to the extent that Medicare and 
Medicaid eligibility are based on entitlement to benefits under title 
II and eligibility for benefits under title XVI, these proposed 
regulations would also affect the Medicare and Medicaid programs.

[[Page 40214]]

Who Can Get Disability Benefits?

    Title XVI of the Act provides for Supplemental Security Income 
(SSI) payments on the basis of disability if you are disabled and have 
limited income and resources. Under title II of the Act, we provide for 
the payment of disability benefits if you are disabled and belong to 
one of the following three groups:
    [sbull] Workers insured under the Act,
    [sbull] Children of insured workers, and
    [sbull] Widows, widowers, and surviving divorced spouses (see 20 
CFR 404.336) of insured workers.

    Under title XVI of the Act, we provide for Supplemental Security 
Income (SSI) payments on the basis of disability if you are disabled 
and have limited income and resources.

How Do We Define Disability?

    Under both the title II and title XVI programs, disability must be 
the result of any medically determinable physical or mental impairment 
or combination of impairments that is expected to result in death or 
which has lasted or is expected to last for a continuous period of at 
least 12 months. Our definitions of disability are shown in the 
following table:

------------------------------------------------------------------------
                                                       Disability means
                                                          you have a
                                                           medically
                                                         determinable
 If you file a claim under . . .   And you are . . .   impairment(s) as
                                                        described above
                                                       and that results
                                                           in . . .
------------------------------------------------------------------------
Title II........................  An adult or a       The inability to
                                   child.              do any
                                                       substantial
                                                       gainful activity
                                                       (SGA).
Title XVI.......................  A person age 18 or  The inability to
                                   older.              do any SGA.
Title XVI.......................  A person under age  Marked and severe
                                   18.                 functional
                                                       limitations.
------------------------------------------------------------------------

    In addition, we only consider you to be disabled if your physical 
or mental impairment(s) is so severe that you are not only unable to do 
your previous work, but you cannot, considering your age, education, 
and work experience, engage in any other kind of substantial gainful 
work that exists in the national economy. This is true regardless of 
whether this kind of work exists in the immediate area in which you 
live, whether a specific job vacancy exists for you, or whether you 
would be hired if you applied for work. (See sections 223(d)(2)(A) and 
1614(a)(3)(B) of the Act.)
    We will not consider you under a disability unless you furnish 
medical and other evidence that we need to show that you are disabled. 
(See section 223(d)(5)(A) and, by reference to section 223(d)(5), 
section 1614(a)(3)(H) of the Act.) However, when we decide whether you 
are disabled (or whether you continue to be disabled), we will develop 
a complete medical history of at least the preceding twelve months for 
any case in which we decide that you are not disabled. (See sections 
223(d)(5)(B) and 1614(a)(3)(H) of the Act.)

Who Makes the Rules, Regulations, and Procedures for Providing Evidence 
of Disability?

    Section 205(a) of the Act and, by reference to section 205(a), 
section 1631(d)(1) provide that ``* * * [t]he Commissioner of Social 
Security shall have full power and authority to make rules and 
regulations and to establish procedures, not inconsistent with the 
provisions of this title, which are necessary or appropriate to carry 
out such provisions, and shall adopt reasonable and proper rules and 
regulations to regulate and provide for the nature and extent of the 
proofs and evidence and the method of taking and furnishing the same in 
order to establish the right to benefits hereunder.''

How Do We Decide Whether You Are Disabled?

    To decide whether you are disabled under the statutory definition, 
we use a five-step sequential evaluation process, which we describe in 
our regulations at Sec. Sec.  404.1520 and 416.920. We follow the five 
steps in order and stop as soon as we can make a determination or 
decision. The steps are:
    1. Are you working and is the work you are doing substantial 
gainful activity? If you are working and engaging in substantial 
gainful activity, we find that you are not disabled regardless of your 
medical condition or your age, education, and work experience. If not, 
we go on to step 2 of the sequence.
    2. Do you have any impairment or combination of impairments which 
significantly limits your physical or mental ability to do basic work 
activities? If you do not, we find that you are not disabled. If you 
do, we go on to step 3 of the sequence.
    3. Do you have an impairment(s) that meets or equals the severity 
of an impairment listed in appendix 1 of subpart P of part 404 of our 
regulations? If you do, and the impairment(s) meets the duration 
requirement, we find you disabled. If you do not, we go on to step 4 of 
the sequence.
    4. Considering your residual functional capacity (RFC) and the 
physical and mental demands of the work you have done in the past, does 
your impairment(s) prevent you from doing your past relevant work? If 
not, we find that you are not disabled. If so, we go on to step 5 of 
the sequence.
    5. Considering your RFC and your age, education, and past work 
experience, does your impairment(s) prevent you from doing any other 
work? If it does, and your impairment(s) meets the duration 
requirement, we find that you are disabled. If it does not, we find 
that you are not disabled.
    We use different sequential evaluation processes if we are deciding 
whether your disability continues. See Sec. Sec.  404.1594 and 416.994 
of our regulations. However, these different processes also include 
steps that consider your RFC and past relevant work, and your ability 
to adjust to other work considering your RFC, age, education, and work 
experience.

How Do We Use the Medical-Vocational Rules?

    At step 5 of the sequential evaluation process, we use the medical-
vocational rules in appendix 2 of subpart P of part 404. (By reference, 
Sec.  416.969 of the regulations provides that appendix 2 also applies 
to adults claiming SSI payments based on disability.) The medical-
vocational rules take administrative notice of the existence of 
numerous unskilled occupations at the exertional levels defined in the 
regulations, such as ``sedentary,'' ``light,'' and ``medium.'' The 
rules consider your RFC and your age, education, and past work 
experience in terms of your ability to adjust to other work.
    The medical-vocational rules direct a determination or decision as 
to whether you are disabled if your RFC and age, education, and past 
work experience exactly match the criteria in a rule. If your RFC or 
age, education, and past work experience do not match the criteria in a 
medical-vocational rule, the rules provide a framework for making a 
determination or decision at this step.
    The medical-vocational rules reflect our policy that we consider 
that, as you

[[Page 40215]]

get older, your advancing age makes it increasingly more difficult for 
you to make an adjustment to other work. They also reflect our policy 
that we consider that, if you are illiterate or unable to communicate 
in English, you may have more difficulty adjusting to other work than a 
person who is literate and able to communicate in English.
    If you have skilled or semiskilled work experience, you may have 
gained skills that make it easier for you to adjust to other work--even 
at an advanced age. If your skills can be used in (transferred to) 
other skilled or semiskilled work within your RFC, we will ordinarily 
find that you can adjust to other work and are not disabled regardless 
of your age or education.
    Our regulations at Sec. Sec.  404.1565(a) and 416.965(a) provide 
that, if your skills cannot be transferred to other work within your 
RFC, we consider you to be no better off than if you have only 
unskilled work experience. When all other vocational factors are the 
same, we will make the same decision if you have work skills that do 
not transfer to other work, as we will for a person who has unskilled 
work experience.

What Revisions Are We Proposing To Make, and Why?

    Experience has shown that some of these medical-vocational rules 
can be subject to misinterpretation if you have skilled or semiskilled 
past relevant work or are illiterate or unable to communicate in 
English. Therefore, we propose to revise these rules, as described 
below, to make them clearer and easier to follow. None of these 
proposed modifications would change any of our policies.
    Our rules say that we will find you disabled at step 5 if you are a 
younger individual (age 45-49), you can do only sedentary work, you are 
unable to communicate in English or unable to read or write in English, 
and your work experience is unskilled or you have no transferable 
skills. (See paragraph (h) of Sec.  201.00 of appendix 2.) However, 
this policy is not reflected as clearly as it could be in the 
corresponding medical-vocational rules in Table No. 1 of appendix 2. 
Therefore, we propose revising the rules in Table No. 1 to make them 
clearer by:
    [sbull] Revising the previous work experience criterion of rule 
201.17 to clarify that this rule applies if you have unskilled or no 
work experience, or if you have skilled or semiskilled work experience 
with no transferable skills; and
    [sbull] Revising the education criterion in rule 201.19 to clarify 
that this rule applies only if you are at least literate and able to 
communicate in English.
    (The revisions we propose in rules 201.17 and 201.19 will also 
necessitate editorial revisions in the text of rules 201.18 and 201.20 
because of the format of Table 1. However, this will not result in a 
change of the criteria for either of these rules.)
    Our rules also say that we will find you disabled at step 5 if you 
are closely approaching advanced age (age 50-54), you are limited to 
light work, you are either illiterate or unable to communicate in 
English, and you have no work experience, unskilled work experience, or 
no transferable skills. (See paragraph (d) of Sec.  202.00 of appendix 
2.) However, this policy is not reflected as clearly as it could be in 
the medical-vocational rules in Table No. 2 of appendix 2. Therefore, 
we propose revising the rules in Table No. 2 to make them clearer by:
    [sbull] Revising the previous work experience criterion in rule 
202.09 to clarify that this rule applies if you have unskilled or no 
work experience, or if you have skilled or semiskilled work experience 
with no transferable skills; and
    [sbull] Revising the education criterion in rule 202.11 to clarify 
that this rule applies only if you are at least literate and able to 
communicate in English.
    (The revisions we propose in rules 202.09 and 202.11 will also 
necessitate editorial revisions in the text of rules 202.10 and 202.12 
because of the format of Table 2. However, this will not result in a 
change of the criteria for either of these rules.)
    A similar principle to those described above for Tables No. 1 and 
No. 2 applies under paragraph (c) of Sec.  203.00 of appendix 2 and the 
medical-vocational rules in Table No. 3 of appendix 2. These provisions 
do not make it as clear as they could that we will find you disabled if 
you are closely approaching retirement age (age 60-64), you are 
illiterate or unable to communicate in English, and you have unskilled 
work experience or no transferable skills. Therefore, we propose 
revising Sec.  203.00(c) and the rules in Table No. 3 of appendix 2 by:
    [sbull] Revising the last sentence of current Sec.  203.00(c) to 
make clear that, if you are limited to medium work, you are closely 
approaching retirement age (age 60-64), you have a marginal or less 
education (which includes being illiterate or unable to communicate in 
English), and you have unskilled work experience or skilled or 
semiskilled work experience with no transferable skills, a finding of 
disability is appropriate;
    [sbull] Revising the education criterion of rule 203.01 to clarify 
that it applies if you are illiterate or unable to communicate in 
English;
    [sbull] Revising the previous work experience criterion of rule 
203.01 to clarify that it applies if you have no work experience, 
unskilled work experience, or if you have no transferable skills; and
    [sbull] Revising the education criteria of rules 203.03 and 203.04 
to clarify that they apply only if you have a limited education and are 
at least literate and able to communicate in English.
    (The revisions we propose in rules 203.03 and 203.04 will 
necessitate an editorial revision in the text of rule 203.05 because of 
the format of Table 3. However, this will not result in a change of the 
criteria for this rule.)
    In addition, we plan to revise Social Security Ruling 99-3p, 
``Title XVI: Evaluation of Disability and Blindness in Initial Claims 
for Individuals Age 65 or Older'' (64 FR 33337). Although SSR 99-3p 
provides guidelines for evaluating disability claims for individuals 
age 65 and over, it includes informational discussions about evaluation 
of individuals under age 65 as well. Some of the material in the ruling 
about Sec.  203.00 of appendix 2 could be misleading, and we will 
revise that material consistent with the final version of these 
proposed rules.
    We also propose revising our rules in Sec. Sec.  404.1564 and 
416.964 to clarify how we evaluate your ability to adjust to other work 
if you are illiterate or unable to communicate in English and what we 
mean by ``illiterate or unable to communicate in English.'' Several 
aspects of our policy are not as clear as they could be in our 
regulations.
    We therefore propose revising the last sentence in Sec. Sec.  
404.1564(b) and 416.964(b), and reorganizing current Sec. Sec.  
404.1564(b)(1) and (b)(5) and 416.964(b)(1) and (b)(5) by combining 
paragraphs (b)(1) and (b)(5) into proposed Sec. Sec.  404.1564(b)(1) 
and 416.964(b)(1). We also propose revising the text in (b)(1) to make 
it clearer. These proposed changes would clarify that ``illiterate or 
unable to communicate in English'' is a single education category. 
Currently, these sections discuss illiteracy separately from the 
inability to communicate in English, and they are not organized 
clearly.
    For clarification purposes, we also propose revising the text of 
paragraphs (b)(1) and (b)(5) of current Sec. Sec.  404.1564 and 416.964 
(in proposed Sec. Sec.  404.1564(b)(1) and 416.964(b)(1)) to clarify 
what we mean by the terms ``illiterate'' and ``unable to communicate

[[Page 40216]]

in English.'' On August 28, 2001, we issued final rules revising Sec.  
201.00(h) of Appendix 2 to clarify that the term ``illiterate'' means 
the inability to read or write in English (see 66 FR 45162). At that 
time, we also said that we would examine the use of the term 
``illiterate'' throughout our regulations and, when appropriate, 
provide further clarification (66 FR 45163). The revisions we propose 
would make clear that we consider you to be illiterate or unable to 
communicate in English if you are unable to do any one, or any 
combination of, the following: read a simple message in English, write 
a simple message in English, speak in English, or understand English.
    We also propose, in revised Sec. Sec.  404.1564(b)(1) and 
416.964(b)(1), to clarify that the rules we use if you are illiterate 
or unable to communicate in English also apply if you are both 
illiterate and unable to communicate in English. Although this is our 
longstanding policy, lack of clarity in our regulations has resulted in 
a different policy being applied to claims arising in the 5th Circuit 
(Louisiana, Mississippi, Texas) as the result of a court decision that 
interpreted our regulations differently from what we intended. (See 
Social Security Acquiescence Ruling 86-3(5), Martinez v. Heckler, 735 
F.2d 795 (5th Cir. 1984)). This revision to clarify our regulations 
will allow us to restore national consistency to our disability 
programs and to rescind this Acquiescence Ruling.

Clarity of These Proposed Rules

    Executive Order (E.O.) 12866, as amended by E.O. 13258, requires 
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 rules easier to understand. For example:
    [sbull] Have we organized the material to suit your needs?
    [sbull] Are the requirements in the rules clearly stated?
    [sbull] Do the rules contain technical language or jargon that 
isn't clear?
    [sbull] Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rules easier to understand?
    [sbull] Would more (but shorter) sections be better?
    [sbull] 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/regulations/.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules meet the criteria for a 
significant regulatory action under Executive Order 12866, as amended 
by Executive Order 13258. Thus, they are subject to review by OMB. We 
have also determined that these proposed rules meet the plain language 
requirement of Executive Order 12866, as amended by Executive Order 
13258.

Regulatory Flexibility Act

    We certify that these proposed regulations will not have a 
significant economic impact on a substantial number of small entities 
because they affect only individuals. Therefore, 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 reporting or 
recordkeeping requirements subject to OMB clearance.

(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; 96.006, 
Supplemental Security Income)

List of Subjects

20 CFR Part 404

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

20 CFR Part 416

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

    Dated: April 3, 2003.
Jo Anne B. Barnhart,
Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend 
subpart P of part 404 and subpart I of part 416 of 20 CFR Chapter III 
as set forth below:

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

Subpart P--[Amended]

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

    Authority: Secs. 202, 205(a), (b), and (d)-(h), 216(i), 221(a) 
and (i), 222(c), 223, 225, and 702(a)(5) of the Social Security Act 
(42 U.S.C. 402, 405(a), (b), and (d)-(h), 416(i), 421(a) and (i), 
422(c), 423, 425, and 902(a)(5)); sec. 211(b), Pub. L. 104-193, 110 
Stat. 2105, 2189.

    2. Amend Sec.  404.1564 by revising the last sentence of paragraph 
(b), revising paragraph (b)(1), removing paragraph (b)(5), and 
redesignating paragraph (b)(6) as paragraph (b)(5), to read as follows:


Sec.  404.1564  Your education as a vocational factor.

* * * * *
    (b) How we evaluate your education. * * * In evaluating your 
educational level, we use the following categories:
    (1) Illiterate or unable to communicate in English. We consider an 
individual to be within the education level of illiterate or unable to 
communicate in English if he or she is illiterate, or unable to 
communicate in English, or both.
    (i) Illiterate. Illiterate means either unable to read in English, 
unable to write in English, or both. Generally, a person who cannot 
read or write in English has had little or no formal schooling in 
English. We consider someone illiterate if he or she either cannot read 
or cannot write (or both) a simple message, such as instructions or 
inventory lists in English. If an individual can sign his or her name 
in English or read or write in another language, this does not mean 
that we will consider him or her to be literate in English. We will 
make this decision based on all of the evidence.
    (ii) Inability to communicate in English. Because the ability to 
speak and understand English is generally learned or enhanced at 
school, we consider this as an education factor. Because English is the 
primary language of this country, it may be more difficult for someone 
who does not speak English or does not understand English to adjust to 
other work than it is for someone who can speak and understand English, 
regardless of the amount of education the person may have in another 
language. We consider an individual to be unable to communicate in 
English if he or she cannot speak English, or cannot understand 
English, or both.
* * * * *

[[Page 40217]]

    3. Amend Table No. 1 in appendix 2 to subpart P of part 404--
Medical-Vocational Guidelines by revising the previous work experience 
criterion of rule 201.17, revising the education criterion of rule 
201.19, and revising rules 201.18 and 201.20 to read as follows:

Appendix 2 to Subpart P of Part 404--Medical-Vocational Guidelines

* * * * *

  Table No. 1.--Residual Functional Capacity: Maximum Sustained Work Capability Limited to Sedentary Work as a
                              Result of Severe Medically Determinable Impairment(s)
----------------------------------------------------------------------------------------------------------------
                                                                          Previous work
              Rule                       Age             Education         experience            Decision
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
201.17..........................  Younger            Illiterate or      Unskilled or      Disabled.
                                   individual age     unable to          none or skilled
                                   45-49.             communicate in     or semiskill--
                                                      English.           skills not
                                                                         transferable.
201.18..........................  ......do.........  Limited or less--  Unskilled or      Not disabled.
                                                      at least           none.
                                                      literate and
                                                      able to
                                                      communicate in
                                                      English.
201.19..........................  ......do.........  ......do.........  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         not
                                                                         transferable.
201.20..........................  ......do.........  Limited or less..  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         transferable.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
    4. Amend Table No. 2 in appendix 2 to subpart P of part 404--
Medical-Vocational Guidelines by revising the work experience criterion 
of rule 202.09, revising the education criterion of rule 202.11, and 
revising rules 202.10 and 202.12 to read as follows:

 Table No. 2.--Residual Functional Capacity: Maximum Sustained Work Capability Limited to Light Work as a Result
                                 of Severe Medically Determinable Impairment(s)
----------------------------------------------------------------------------------------------------------------
                                                                          Previous work
              Rule                       Age             Education         experience            Decision
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
202.09..........................  Closely            Illiterate or      Unskilled or      Disabled.
                                   approaching        unable to          none or skilled
                                   advanced age.      communicate in     or semi-
                                                      English.           skilled--skills
                                                                         not
                                                                         transferable.
202.10..........................  ......do.........  Limited or less--  Unskilled or      Not disabled.
                                                      at least iterate   none.
                                                      and able to
                                                      communicate in
                                                      English.
202.11..........................  ......do.........  ......do.........  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         not
                                                                         transferable.
202.12..........................  ......do.........  Limited or less..  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         transferable.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
    5. Revise last sentence of paragraph (c) of 203.00, appendix 2 to 
subpart P of part 404--Medical-Vocational Guidelines to read as 
follows:


Sec.  203.00  

* * * * *
    (c) * * * For individuals closely approaching retirement age (60-
64) with past work experience of unskilled work, or skilled or 
semiskilled work experience with no transferable skills, and a marginal 
education or less (which includes being illiterate or unable to 
communicate in English), a finding of disabled is appropriate.
* * * * *
    6. Amend Table No. 3 in appendix 2 to subpart P of part 404--
Medical-Vocational Guidelines by revising the education and previous 
work experience criteria in rule 203.01, revising the education 
criterion in rule 203.04, and revising rules 203.03 and 203.05 to read 
as follows:

Table No. 3.--Residual Functional Capacity: Maximum Sustained Work Capability Limited to Medium Work as a Result
                                 of Severe Medically Determinable Impairment(s)
----------------------------------------------------------------------------------------------------------------
                                                                          Previous work
              Rule                       Age             Education         experience            Decision
----------------------------------------------------------------------------------------------------------------
203.01..........................  Closely            Marginal or less   Unskilled or      Disabled.
                                   approaching        (includes          none or skilled
                                   retirement age.    illiterate or      or semi-
                                                      unable to          skilled--skills
                                                      communicate in     not
                                                      English).          transferable.
203.02..........................  ......do.........  Limited or less..  None............   Do.

[[Page 40218]]

 
203.03..........................  ......do.........  Limited--at least  Unskilled.......  Not disabled.
                                                      literate and
                                                      able to
                                                      communicate in
                                                      English.
203.04..........................  ......do.........  ......do.........  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         not
                                                                         transferable.
203.05..........................  ......do.........  Limited or less..  Skilled or semi-   Do.
                                                                         skilled--skills
                                                                         transferable.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *

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

Subpart I--[Amended]

    7. The authority citation for subpart I of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1611, 1614, 1619, 1631(a), (c), and 
(d)(1), and 1633 of the Social Security Act (42 U.S.C. 902(a)(5), 
1382, 1382c, 1382h, 1383(a), (c), and (d)(1), and 1383b); secs. 4(c) 
and 5, 6(c)-(e), 14(a) and 15, Pub. L. 98-460, 98 Stat. 1794, 1801, 
1802, and 1808 (42 U.S.C. 421 note, 423 note, 1382h note).

    8. Amend Sec.  416.964 by revising the last sentence of paragraph 
(b), revising paragraph (b)(1), removing paragraph (b)(5), and 
redesignating paragraph (b)(6) as paragraph (b)(5), to read as follows:


Sec.  416.964  Your education as a vocational factor.

* * * * *
    (b) How we evaluate your education. * * * In evaluating your 
educational level, we use the following categories:
    (1) Illiterate or unable to communicate in English. We consider an 
individual to be within the education level of illiterate or unable to 
communicate in English if he or she is illiterate, or unable to 
communicate in English, or both.
    (i) Illiterate. Illiterate means either unable to read in English, 
unable to write in English, or both. Generally, a person who cannot 
read or write in English has had little or no formal schooling in 
English. We consider someone illiterate if he or she either cannot read 
or cannot write (or both) a simple message, such as instructions or 
inventory lists in English. If an individual can sign his or her name 
in English or read or write in another language, this does not mean 
that we will consider him or her to be literate in English. We will 
make this decision based on all of the evidence.
    (ii) Inability to communicate in English. Because the ability to 
speak and understand English is generally learned or enhanced at 
school, we consider this as an education factor. Because English is the 
primary language of this country, it may be more difficult for someone 
who does not speak English or does not understand English to adjust to 
other work than it is for someone who can speak and understand English, 
regardless of the amount of education the person may have in another 
language. We consider an individual to be unable to communicate in 
English if he or she either cannot speak English, or cannot understand 
English, or both.
* * * * *
[FR Doc. 03-16859 Filed 7-3-03; 8:45 am]
BILLING CODE 4191-02-P