[Federal Register Volume 68, Number 148 (Friday, August 1, 2003)]
[Proposed Rules]
[Pages 45180-45190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19541]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulations Nos. 4 and 16]
RIN 0960--AF86


Continuation of Benefit Payments to Certain Individuals Who Are 
Participating in a Program of Vocational Rehabilitation Services, 
Employment Services, or Other Support Services

AGENCY: Social Security Administration.

ACTION: Notice of proposed rulemaking.

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SUMMARY: We propose to revise our regulations, which provide for the 
continuation of benefit payments to certain individuals who recover 
medically while participating in a vocational rehabilitation program 
with a State vocational rehabilitation agency. We are proposing these 
changes because of statutory amendments, which extend eligibility for 
these continued benefit payments to certain individuals who recover 
medically while participating in another appropriate program of 
vocational rehabilitation services. These include individuals 
participating in the Ticket to Work and Self-Sufficiency Program or 
another program of vocational rehabilitation services, employment 
services, or other support services approved by the Commissioner of 
Social Security.
    These proposed regulations would affect the payment of Social 
Security disability benefits under title II of the Social Security Act 
(the Act) and the payment of Supplemental Security Income (SSI) 
disability or blindness benefits under title XVI of the Act.

DATES: To be sure your comments are considered, we must receive them by 
September 30, 2003.

ADDRESSES: You may give us your comments: by using our Internet site 
facility (i.e., Social Security Online) at 
http://www.socialsecurity.gov; by e-mail to 
[email protected]; by telefax to 
(410) 966-2830; or by letter to the Commissioner of Social Security, PO 
Box 17703, Baltimore, MD 21235-7703. You may also deliver them to the 
Office of Disability and Income Security Programs, 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. You also may inspect the comments on regular business days by 
making arrangements with the contact person shown in the preamble.
    Electronic Version: The electronic file of this document is 
available on the date of publication in the Federal Register at http://www.access.gpo.gov/su_docs/aces/aces140.html. It is also available on 
the Internet site for the Social Security Administration (i.e. Social 
Security Online): http://www.socialsecurity.gov/regulations/.

FOR FURTHER INFORMATION CONTACT: Suzanne DiMarino, Social Insurance 
Specialist, Social Security Administration, 100 Altmeyer Building, 6401 
Security Boulevard, Baltimore, MD 21235-6401, e-mail to 
[email protected], or telephone (410) 965-1769 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 http://www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION:

Background

Statutory Background

The Social Security Disability Amendments of 1980

    The Social Security Disability Amendments of 1980 (the 1980 
Amendments), Pub. L. 96-265, amended titles II and XVI of the Act to 
provide for the continuation of payment of disability benefits under 
the Social Security or SSI program to certain individuals whose 
disability medically ceases while the individual is engaged in a 
program of vocational rehabilitation. Section 301 of the 1980 
Amendments added sections 225(b) and 1631(a)(6) of the Act to provide 
that the payment of benefits based on disability shall not be 
terminated or suspended because the physical or mental impairment, on 
which the individual's entitlement or eligibility is based, has or may 
have ceased, if:
    [sbull] The individual is participating in an approved vocational 
rehabilitation program under a State plan approved under title I of the 
Rehabilitation Act of 1973, and
    [sbull] The Commissioner of Social Security determines that 
completion of the program, or its continuation for a specified period 
of time, will increase the likelihood that the individual may be 
permanently removed from the disability benefit rolls.
    The purpose of these benefit continuation provisions is to 
encourage individuals to continue participating in the approved 
vocational rehabilitation program in which they are engaged at the time 
their disability ceases in ``those exceptional cases where the 
administration is able to determine that continuation in a vocational 
rehabilitation program will increase the likelihood of the individual's 
being permanently removed from the disability rolls.'' Report of the 
Senate Committee on Finance on the 1980 Amendments, S. Rep. No. 408, 
96th Cong., 1st Sess. 50 (1979).
    Our regulations implementing the provisions of the Act added by 
section 301 of the 1980 Amendments provide that we may continue an 
individual's benefits (and, when the individual receives benefits as a 
disabled worker, the benefits of his or her dependents) after the 
individual's impairment is no longer disabling if:
    [sbull] The individual's disability did not end before December 
1980, the effective date of the provisions of the Act added by section 
301 of the 1980 Amendments;
    [sbull] The individual is participating in an appropriate program 
of vocational rehabilitation, that is, one that has been approved under 
a State plan approved under title I of the Rehabilitation Act of 1973 
and which meets the requirements outlined in 34 CFR part 361 for a 
rehabilitation program;
    [sbull] The individual began the program before his or her 
disability ended; and
    [sbull] We have determined that the individual's completion of the 
program, or his or her continuation in the

[[Page 45181]]

program for a specified period of time, will significantly increase the 
likelihood that the individual will not have to return to the 
disability benefit rolls.
    Our regulations provide that these continued benefits generally 
will be stopped with the month the individual completes the program, 
stops participating in the program for any reason, or we determine that 
the individual's continuing participation in the program will no longer 
significantly increase the likelihood that the individual will be 
permanently removed from the disability benefit rolls.

The Omnibus Budget Reconciliation Act of 1987

    Section 9112 of the Omnibus Budget Reconciliation Act of 1987 (OBRA 
1987), Pub. L. 100-203, amended section 1631(a)(6) of the Act to extend 
eligibility for continued benefits under that section to individuals 
who receive SSI benefits based on blindness and whose blindness ends 
while they are participating in an approved State vocational 
rehabilitation program. This amendment was effective April 1, 1988. We 
implemented this amendment through the issuance of operating 
instructions reflecting the extension of eligibility for continued 
benefits under section 1631(a)(6) of the Act to individuals receiving 
SSI blindness benefits. In addition, when we added Sec. Sec.  
416.2201(b) and 416.2212 to our regulations governing payments under 
the vocational rehabilitation cost reimbursement program, we included 
rules in Sec. Sec.  416.2201(b) and 416.2212 to reflect the expanded 
scope of the benefit continuation provision under section 1631(a)(6) of 
the Act resulting from the amendment made by section 9112 of OBRA 1987.

The Omnibus Budget Reconciliation Act of 1990

    Section 5113 of the Omnibus Budget Reconciliation Act of 1990 (OBRA 
1990), Pub. L. 101-508, amended sections 225(b) and 1631(a)(6) of the 
Act to permit the continuation of benefit payments on account of an 
individual's participation in a non-State vocational rehabilitation 
program. Section 5113 amended sections 225(b) and 1631(a)(6) of the Act 
to allow the continuation of payment of Social Security disability 
benefits or SSI disability or blindness benefits to an individual whose 
disability or blindness ends while he or she is participating in a 
program of vocational rehabilitation services approved by us. These 
amendments extended to Social Security disability beneficiaries and SSI 
disability or blindness beneficiaries who medically recover while 
participating in an approved non-State vocational rehabilitation 
program the same benefit continuation rights applicable to individuals 
participating in an approved State vocational rehabilitation program. 
The amendments made by section 5113 of OBRA 1990 were effective for 
benefits payable for months beginning on or after November 1, 1991, and 
applied to individuals whose disability or blindness ended on or after 
that date. We implemented these amendments through the issuance of 
operating instructions reflecting the extension of eligibility for 
continued benefits under sections 225(b) and 1631(a)(6) of the Act to 
individuals who medically recover while participating in an approved 
non-State vocational rehabilitation program.

The Personal Responsibility and Work Opportunity Reconciliation Act of 
1996

    The Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996, Pub. L. 104-193, amended section 1614(a)(3) of the Act to 
require redeterminations of the eligibility for SSI benefits based on 
disability of individuals who attain age 18 (i.e., age-18 
redeterminations). The law requires us to redetermine the eligibility 
of individuals who attain age 18 and who were eligible for SSI benefits 
for children based on disability for the month before the month in 
which they attained age 18. In these disability redeterminations, the 
law requires us to use the rules for determining initial eligibility 
for adults (individuals age 18 or older) filing new applications for 
benefits. The medical improvement review standard used in continuing 
disability reviews does not apply to these redeterminations.
    In Sec.  416.987(b) of our regulations, we explain the rules for 
adult applicants that we use in redetermining the eligibility of an 
individual who has attained age 18. If we find that the individual is 
not disabled, we will find that his or her disability has ended as 
explained in Sec.  416.987(e). For an individual whose disability has 
ended as a result of a redetermination using the rules described in 
Sec.  416.987(b), and who is participating in a program of vocational 
rehabilitation services when disability ends, our operating guides 
provide that we will consider the individual for eligibility for 
continued benefits under section 1631(a)(6) of the Act. For benefits to 
continue, the individual must be participating in an approved program 
of vocational rehabilitation services. In addition, the completion or 
continuation of the program must satisfy the test of increasing the 
likelihood of the individual's permanent removal from the benefit 
rolls. Also, the individual must meet all of the other requirements of 
SSI eligibility.

The Ticket to Work and Work Incentives Improvement Act of 1999

    On December 17, 1999, the Ticket to Work and Work Incentives 
Improvement Act of 1999, Pub. L. 106-170, became law. Section 101(a) of 
this law added a new section 1148 of the Act to establish the Ticket to 
Work and Self-Sufficiency Program (Ticket to Work program). The purpose 
of the Ticket to Work program is to expand the universe of service 
providers available to beneficiaries with disabilities who are seeking 
employment services, vocational rehabilitation services, or other 
support services to assist them in obtaining, regaining, and 
maintaining self-supporting employment.
    Under the Ticket to Work program, the Commissioner of Social 
Security may issue a ticket to Social Security disability beneficiaries 
and disabled or blind SSI beneficiaries for participation in the 
program. Each beneficiary has the option of using his or her ticket to 
obtain services from a provider known as an employment network or from 
a State vocational rehabilitation agency. The beneficiary will choose 
the employment network or State vocational rehabilitation agency, and 
the employment network or State vocational rehabilitation agency will 
provide services. Employment networks will also be able to choose whom 
they serve.
    We published final regulations implementing the Ticket to Work 
program in the Federal Register on December 28, 2001 (66 FR 67370). The 
final regulations were effective January 28, 2002. Under the provisions 
of these final regulations, service providers that provide vocational 
rehabilitation services, employment services, or other support services 
can qualify as employment networks and serve beneficiaries under the 
Ticket to Work program. The expansion of options available to 
beneficiaries to obtain these services are intended to enhance the 
choices of beneficiaries in getting the services they need to obtain, 
regain and/or maintain employment.
    Section 101(b) of the Ticket to Work and Work Incentives 
Improvement Act of 1999 amended sections 225(b)(1) and 1631(a)(6)(A) of 
the Act by deleting ``a program of vocational rehabilitation services'' 
and inserting in its place ``a program consisting of the Ticket to Work 
and Self-Sufficiency Program under section 1148 or another program of 
vocational rehabilitation services, employment services, or other 
support

[[Page 45182]]

services.'' The amended provisions of these sections now expressly 
authorize the continuation of benefit payments under section 225(b) or 
1631(a)(6) of the Act to an individual whose disability or blindness 
ceases when the individual is participating in a program consisting of 
the Ticket to Work program under section 1148 of the Act or another 
program of vocational rehabilitation services, employment services, or 
other support services approved by the Commissioner of Social Security. 
The amendments did not change the requirement in sections 225(b)(2) and 
1631(a)(6)(B) of the Act that, for an individual to qualify, the 
Commissioner of Social Security must determine that the completion of 
the program, or its continuation for a specified period of time, will 
increase the likelihood that the individual may be permanently removed 
from the disability or blindness benefit rolls.

The Individuals with Disabilities Education Act

    The Individuals With Disabilities Education Act Amendments of 1997 
(IDEA 97), Pub. L. 105-17, was enacted on June 4, 1997. In the final 
regulations published by the Secretary of Education (the Secretary) in 
the Federal Register on March 12, 1999 (64 FR 12406), the Secretary 
stated that ``The purposes of this part are * * * ``(t)o ensure that 
all children with disabilities have available to them a free 
appropriate public education that emphasizes special education and 
related services designed to meet their unique needs and prepare them 
for employment and independent living; * * *'' IDEA requires a 
coordinated set of activities for a student with a disability that 
promotes movement from school to post-school activities, including 
post-secondary education, vocational training, integrated employment, 
continuing and adult education, adult services, independent living, or 
community participation. Each State can receive a grant of assistance 
under IDEA for serving a child with a disability birth through age 21.
    In order for a State to receive assistance under part B of IDEA, an 
individualized education program (IEP) must be developed, reviewed and 
revised for each child with a disability. The IEP must be developed, 
reviewed and, if appropriate, revised by a team including, among 
others, the student, if appropriate, and his or her parents, a special 
education teacher, the student's regular education teacher, if the 
child is or may be participating in the regular education environment, 
and other individuals who have knowledge or special expertise 
concerning the child. For each student with a disability beginning at 
age 16 (or younger if determined appropriate by the IEP team), the IEP 
must include a statement of needed transition services for the student 
that promotes movement from school to post-school activities including 
postsecondary education, vocational training, integrated employment 
(including supported employment), continuing and adult education, adult 
services, independent living, or community participation. Based on the 
individual student's needs, transition services might include 
postsecondary education, vocational training, integrated employment 
(including supported employment), continuing and adult education, adult 
services, independent living, or community participation. Each 
student's IEP must be reviewed periodically, but not less than 
annually, to determine whether the annual goals for the child are being 
achieved; and must be revised, as appropriate, to: address any lack of 
expected progress toward the annual goals and in the general 
curriculum; the results of any reevaluation; information about the 
child provided to, or by, the parents; the child's anticipated needs; 
or other matters.

Other Background

The National Longitudinal Transition Study

    The National Longitudinal Transition Study (NLTS) was mandated by 
the U.S. Congress in 1983, and describes the experiences and outcomes 
of youth with disabilities nationally during secondary school and early 
adulthood. It was conducted from 1987 through 1993 by SRI International 
under contract number 300-87-0054 with the Office of Special Education 
Programs, U.S. Department of Education. (The electronic file of this 
document is available at http://www.sri.com/policy/cehs/publications/dispub/nlts/nltssum.html.)
    The NLTS provides evidence of the importance of supporting students 
with disabilities to stay in school. The study showed that:
    [sbull] Students with disabilities who stay in school have better 
post-school outcomes than their peers who dropped out of school.
    [sbull] Students with disabilities who stayed in school were more 
likely to enroll in postsecondary vocational or academic programs.
    [sbull] There was a consistently positive relationship between 
staying in school and employment success.
    In addition, the NLTS documented the importance of vocational 
education and work experience programs in school:
    [sbull] Students with disabilities who took occupationally-oriented 
vocational education were significantly less likely to drop out of 
school than students who did not.
    [sbull] Students with disabilities who participated in work 
experience programs missed significantly less school and were less 
likely to fail a course or drop out of high school.
    [sbull] For the majority of students with disabilities (those with 
learning, speech or emotional disabilities or mild mental retardation) 
vocational education in high school was related to a higher probability 
of finding competitive jobs and higher earnings.
    [sbull] For students with orthopedic or health impairments, 
participation in high school work experience programs translated into a 
higher likelihood of employment and higher earnings after high school.
    The NLTS also documented that the post-school paths of youths with 
disabilities reflected their transition goals. Twelfth-graders who had 
a transition goal related to competitive employment or to postsecondary 
education were more likely to find jobs or go on to postsecondary 
schools than students who did not.
    The NLTS suggests that any efforts that encourage students with 
disabilities to stay in school and complete their educational and 
vocational training are important to improving post-school outcomes for 
students with disabilities. It indicates that students with 
disabilities drop out of school at a higher rate than students in the 
general population (38 percent vs. 25 percent).

The New Freedom Initiative

    On February 1, 2001, President George W. Bush announced his New 
Freedom Initiative to promote the full participation of people with 
disabilities in all areas of society by increasing access to assistive 
and universally designed technologies, expanding educational and 
employment opportunities, and promoting full access to community life. 
Because a solid education is critical to ensuring that children with 
disabilities have an equal chance to succeed, the New Freedom 
Initiative includes goals of expanding access to quality education for 
youth with disabilities, ensuring that they receive support to 
transition from school to employment, and improving the high school 
graduation rates of students with disabilities. These proposed rules 
fully support the

[[Page 45183]]

education and employment goals embodied in the New Freedom Initiative.

Explanation of Proposed Changes

    The proposed rules would update our regulations to reflect 
amendments to sections 225(b) and 1631(a)(6) of the Act. They also 
would make certain other changes to our regulations regarding 
eligibility for continued benefit payments under these sections of the 
Act.

Extension of Eligibility for Continued Benefit Payments to Individuals 
Who Receive SSI Benefits Based on Blindness

    We propose to revise Sec. Sec.  416.1321(d), 416.1331(a) and (b), 
416.1338(a) and (b), and 416.1402(j) to reflect the OBRA 1987 amendment 
which extended the scope of section 1631(a)(6) of the Act to cover 
individuals receiving SSI benefits based on blindness. We propose to 
revise these sections to indicate that an individual whose eligibility 
for SSI benefits is based on blindness and whose blindness ends due to 
medical recovery while he or she is participating in a program of 
vocational rehabilitation services, employment services, or other 
support services may be eligible for continued benefits under section 
1631(a)(6) of the Act. We also are reflecting this expanded scope of 
the statute in proposed new Sec.  416.1338(e), which we discuss later 
in this preamble.

Individuals Whose Disability Is Determined To Have Ended as a Result of 
an Age-18 Redetermination of SSI Eligibility

    We propose to revise the introductory text of Sec.  416.1338(a) to 
indicate that children who receive SSI benefits based on disability and 
whose disability is determined to have ended under the rules in Sec.  
416.987(b) and (e)(1) in an age-18 redetermination may have their 
benefit payments continued under section 1631(a)(6) of the Act if the 
individual meets all other requirements for continued benefits.

Students Participating in an Individualized Education Program

    As noted above, the NLTS documented the importance of vocational 
education and work experience programs in school. An IEP that addresses 
needed transition services is developed, reviewed and, if appropriate, 
revised on a regular basis by the IEP team for a student with a 
disability beginning at age 16 (or younger, if determined appropriate 
by the IEP team). Therefore, we are proposing rules to provide that we 
will consider a student's completion of or continuation in such a 
program to be analogous to the individualized determination that 
completion of or continuation in other approved programs of vocational 
rehabilitation services will improve an individual's level of 
education, work experience, or skills so that he or she would be more 
likely to be able to do other work that exists in the national economy, 
despite a possible future reduction in his or her residual functional 
capacity. On this basis, under the rules we are proposing to add as 
Sec. Sec.  404.328 and 416.1338(e), we will determine that 
participation in such a program will increase the likelihood that an 
individual who is engaged in such a program at the time his or her 
disability ceases will not have to return to the disability rolls.
    The NLTS also demonstrated that there was a consistently positive 
relationship between staying in school and employment success, and 
suggested that any efforts that encourage students with disabilities to 
stay in school and complete their educational and vocational training 
are important to improving post-school outcomes for students with 
disabilities. We, therefore, propose to amend our rules to encourage 
young people with disabilities to stay in school and complete their 
educational and vocational training, and to encourage the families of 
students with disabilities to support them in preparing for employment 
and self-sufficiency. This is consistent with the goals of the 
President's New Freedom Initiative to expand access to quality 
education for youth with disabilities, ensure that they receive support 
to transition from school to employment, and improve the high school 
graduation rates of students with disabilities. Specifically, we are 
proposing that, if a student age 18 through 21 is receiving services 
under an IEP, and if the student's disability ceases as a result of a 
continuing disability review or a redetermination of his or her 
eligibility at age 18 under the rules for determining initial 
eligibility as adults (i.e., age 18 redeterminations), we will consider 
that the student's completion of or continuation in the IEP will 
increase the likelihood that he or she will not have to return to the 
disability or blindness benefit rolls.
    We are proposing benefit continuation on this basis for students 
beginning at age 18, who are receiving services under IEPs when their 
disabilities cease as a result of continuing disability reviews or age-
18 redeterminations, in order to encourage young people with 
disabilities to stay in school and complete their educational and 
vocational training, and to encourage their families to support them in 
preparing for employment and self-sufficiency, regardless of the 
possible outcome of continuing disability reviews or age 18 
redeterminations. We are proposing benefit continuation on this basis 
for students with disabilities through age 21, since each State can 
receive a grant of assistance under IDEA for serving a child with a 
disability through age 21.

Individuals Participating in the Ticket to Work Program or Another 
Program of Vocational Rehabilitation Services, Employment Services, or 
Other Support Services Approved by Us

    We propose to revise and update our regulations regarding the type 
of program in which an individual must be participating in order to 
qualify for continued benefits. Our existing regulations, which are 
based on the original provisions of sections 225(b) and 1631(a)(6) of 
the Act, indicate that an individual whose impairment is no longer 
disabling may be considered for eligibility for continued benefits if 
he or she is participating in a vocational rehabilitation program 
provided by a State vocational rehabilitation agency. The amendments to 
sections 225(b)(1) and 1631(a)(6)(A) of the Act, made by OBRA 1990, 
extended consideration for continued benefits under sections 225(b) and 
1631(a)(6) of the Act to individuals in approved non-State vocational 
rehabilitation programs.
    We implemented the amendments made by OBRA 1990 by publishing 
operating instructions in 1992. These instructions identified an 
approved non-State vocational rehabilitation program as any non-State 
vocational rehabilitation service provider who meets one of the 
following criteria:
    [sbull] Is licensed, certified, accredited, or registered, as 
appropriate, to provide vocational rehabilitation services in the State 
in which it provides services; or
    [sbull] Is an agency of the Federal government (e.g., the 
Department of Veterans Affairs); or
    [sbull] Is a provider approved to provide services under a Social 
Security Administration research or demonstration project.
    The amendments to sections 225(b)(1) and 1631(a)(6)(A) of the Act, 
made by section 101(b) of Pub. L. 106-170, further expanded the type of 
program in which an individual must be participating to qualify for 
continued benefits. These sections of the Act now provide that an 
individual may be considered for eligibility for continued benefits if 
she or he is participating in a program consisting of the Ticket to 
Work program or another program of

[[Page 45184]]

vocational rehabilitation services, employment services, or other 
support services approved by the Commissioner of Social Security.
    We propose to revise Sec. Sec.  404.316(c)(1), 404.337(c)(1), 
404.352(d)(1), 404.902(s), 404.1586(g)(1), 404.1596(c)(4), 404.1597(a), 
416.1321(d)(1), 416.1331(a) and (b), 416.1338(a), and 416.1402(j) to 
take account of the amendments to sections 225(b)(1) and 1631(a)(6)(A) 
of the Act. In the proposed revisions to these sections of the 
regulations, we are proposing to use the term ``an appropriate program 
of vocational rehabilitation services, employment services, or other 
support services'' to refer to the program in which an individual must 
be participating in order to be considered for eligibility for 
continued benefits under sections 225(b) and 1631(a)(6) of the Act, as 
amended.
    We also propose to amend our regulations by adding new Sec. Sec.  
404.327(a) and 416.1338(c) to explain the term ``an appropriate program 
of vocational rehabilitation services, employment services, or other 
support services.'' We explain that an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services means one of the following:
    [sbull] A program carried out under an individual work plan with an 
employment network under the Ticket to Work program;
    [sbull] A program carried out under an individualized plan for 
employment with a State vocational rehabilitation agency operating 
under a State plan approved under title I of the Rehabilitation Act of 
1973, as amended;
    [sbull] A program which is carried out by an organization 
administering a Vocational Rehabilitation Services Project for American 
Indians with Disabilities authorized under section 121 of part C of 
title I of the Rehabilitation Act of 1973, as amended (29 U.S.C. 750 et 
seq.).
    [sbull] A program of vocational rehabilitation services, employment 
services, or other support services carried out under a similar 
individualized employment plan with another provider of services 
approved by us; or
    [sbull] An individualized education program (IEP) developed under 
policies and procedures approved by the Secretary of Education for 
assistance to States for the education of children with disabilities 
under the Individuals with Disabilities Education Act (IDEA), as 
amended (20 U.S.C. 1400 et seq.).
    We also propose to include an appropriate cross-reference to Sec.  
404.327(a) or Sec.  416.1338(c) in the sections of the regulations 
which state the basic requirement that the individual must be 
participating in an appropriate program.

Definition of ``Participating'' in the Program

    We propose to amend our regulations to add new Sec. Sec.  
404.327(b) and 416.1338(d) to explain when an individual will be 
considered to be ``participating'' in the program. Sections 225(b) and 
1631(a)(6) of the Act and our existing regulations do not define the 
term ``participating.''
    Our existing operating instructions (published in 1986) use the 
term ``actively involved'' in a vocational rehabilitation program and 
define active participation in a State vocational rehabilitation 
program as placement in one of four State vocational rehabilitation 
agency status codes: vocational rehabilitation plan developed and 
approved; counseling and guidance; physical restoration; and training, 
including vocational and college training. Any other State vocational 
rehabilitation agency status codes are not considered active 
participation for purposes of continued benefit payments. Other 
providers of vocational rehabilitation services, employment services, 
or other support services do not use these codes and several State 
vocational rehabilitation agencies no longer use them.
    Our operating instructions on demonstrating participation in a non-
State vocational rehabilitation program require that we obtain 
information regarding the individual's status, such as whether the 
individual is actively receiving services such as counseling and 
guidance, physical restoration, or academic, business, vocational, or 
other training. We use this information to determine on a case-by-case 
basis whether the individual's status is equivalent to the State 
vocational rehabilitation status codes used to determine participation.
    In proposed new Sec. Sec.  404.327(b) and 416.1338(d), we explain 
the criteria we will use to determine whether an individual is 
``participating'' in the program for purposes of continued benefit 
payments. We explain that for a program which is carried out under an 
individual work plan with an employment network, an individualized plan 
for employment with a State vocational rehabilitation agency, or a 
similar, individualized, written employment plan with another provider 
of services approved by us, we will consider the individual to be 
participating in the program if the individual is engaging in the 
activities outlined in his or her plan. If the individual is age 18 
through 21 and receiving services under an IEP developed under policies 
and procedures approved by the Secretary of Education for assistance to 
States for the education of children with disabilities under the 
Individuals with Disabilities Education Act, we will consider the 
individual to be participating in the program if he or she is taking 
part in the activities or services outlined in his or her IEP. To meet 
our requirements for participation, the individual must be taking part 
in the activities outlined in his or her plan or program.

Determining Increased Likelihood of Permanent Removal From the 
Disability Benefit Rolls

    We propose to amend our regulations to add new Sec. Sec.  404.328 
and 416.1338(e) to explain how we will determine whether an 
individual's completion of or continuation in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services will increase the likelihood that the individual will 
not have to return to the disability benefit rolls. Sections 225(b) and 
1631(a)(6) of the Act provide for continued benefits to persons who are 
no longer disabled due to medical recovery and who are participating in 
an appropriate program only if SSA can determine that completion or 
continuation of the program ``will increase the likelihood'' that the 
individual will remain permanently off the disability benefit rolls. As 
the individual is not disabled and, by definition, is able to engage in 
substantial gainful activity without the need for the program, there is 
already a ``likelihood'' that the individual will stay off the 
disability benefit rolls. Benefits may be continued to the individual 
only if completion or continuation of the program will ``increase'' 
this likelihood. For this reason, proposed new Sec. Sec.  404.328 and 
416.1338(e) will require, that, in order that we will make a 
determination that a program will increase the likelihood that an 
individual will not have to return to the disability benefit rolls, we 
must determine that completion of or participation in the program will 
provide the individual with:
    [sbull] An improvement in the individual's work experience so that 
he or she would be more likely to be able to do past relevant work, 
despite a possible future reduction in his or her residual functional 
capacity; or
    [sbull] An improvement in any of the vocational factors of 
education, work experience, or skills so that he or she would be more 
likely to be able to do

[[Page 45185]]

other work that exists in the national economy, despite a possible 
future reduction in his or her residual functional capacity.
    We are also proposing a rule in Sec. Sec.  404.328 and 416.1338(e) 
for students age 18 through 21 who are participating in an 
individualized education program developed under policies and 
procedures approved by the Secretary of Education for assistance to 
States for the education of children with disabilities under the 
Individuals with Disabilities Education Act, as amended (20 U.S.C. 
Sec.  1400 et seq.). Under the proposed rule, we will find that these 
students' completion of or continuation in the program will increase 
the likelihood that they will not have to return to the disability or 
blindness benefit rolls.
    As a result of our proposed revisions regarding how we will make a 
likelihood determination, we propose to eliminate the examples provided 
in Sec. Sec.  404.316(c)(1)(iv) and 416.1338(a)(4) regarding making a 
``likelihood'' decision because these examples do not directly 
illustrate the rules we are proposing. Additionally, in Sec. Sec.  
404.316(c), 404.337(c), 404.352(d), 404.902(s), 404.1586(g), 
404.1596(c), 404.1597(a), 416.1321(d), 416.1331(b), 416.1338(a), and 
416.1402(j), we are proposing to remove the modifier ``significantly'' 
from the phrase ``significantly increase the likelihood'' in the 
existing provisions to make the regulations conform more closely to the 
language of sections 225(b)(2) and 1631(a)(6)(B) of the Act.

Summary of Proposed Revisions to the Regulations on Continuation of 
Social Security Disability and SSI Disability or Blindness Benefits

    We propose to revise Sec. Sec.  404.316(c)(1), 404.337(c)(1), 
404.352(d)(1), 404.1586(g)(1), 404.1596(c)(4), 416.1321(d) and 
416.1338(a) to indicate that an individual's benefits may be continued 
after his or her impairment is no longer disabling (or, for SSI 
blindness benefits, after his or her blindness ends due to medical 
recovery) if:
    [sbull] The individual is participating in an appropriate program 
of vocational rehabilitation services, employment services, or other 
support services, as described in proposed new Sec.  404.327(a) and (b) 
or in proposed new Sec.  416.1338(c) and (d);
    [sbull] The individual began participating in the program before 
the date his or her disability or blindness ended; and
    [sbull] We have determined under proposed new Sec.  404.328 or 
proposed new Sec.  416.1338(e) that the individual's completion of the 
program, or continuation in the program for a specified period of time, 
will increase the likelihood that the individual will not have to 
return to the disability or blindness benefit rolls.
    In the proposed revision of Sec.  416.1338(a), we also explain that 
an individual whose disability is determined to have ended as a result 
of an age-18 redetermination may continue to receive SSI benefits if 
the requirements described above are met.
    We propose to revise Sec. Sec.  404.316(c)(2), 404.337(c)(2), 
404.352(d)(2), 404.1586(g)(2) and 416.1338(b) to indicate that we will 
stop an individual's benefits with the earliest of these months:
    [sbull] The month in which the individual completes the program;
    [sbull] the month in which the individual stops participating in 
the program for any reason; or
    [sbull] The month in which we determine under proposed new Sec.  
404.328 or proposed new Sec.  416.1338(e) that continued participation 
will no longer increase the likelihood that the individual will not 
have to return to the disability or blindness benefit rolls.
    We propose to revise the Exception in Sec. Sec.  404.316(c)(2), 
404.337(c)(2), 404.352(d)(2), and 404.1586(g)(2) by inserting the 
phrase ``provided you meet all other requirements for entitlement to 
and payment of benefits through such month'' following the word 
``ends.'' We propose to add new Sec. Sec.  404.327, 404.328 and 
416.1338(c), (d) and (e) to our regulations. In proposed new Sec. Sec.  
404.327(a) and 416.1338(c), we explain what we mean by ``an appropriate 
program of vocational rehabilitation services, employment services, or 
other support services.'' In proposed new Sec. Sec.  404.327(b) and 
416.1338(d), we explain when we will consider an individual to be 
``participating'' in the program.
    We propose to add new Sec. Sec.  404.328 and 416.1338(e) to explain 
when we will find that an individual's completion of or continuation in 
an appropriate program of vocational rehabilitation services, 
employment services, or other support services will increase the 
likelihood that the individual will not have to return to the 
disability or blindness benefit rolls.
    We propose to revise Sec.  404.902(s) by removing reference to ``an 
appropriate vocational rehabilitation program'' and inserting in its 
place ``an appropriate program of vocational rehabilitation services, 
employment services, or other support services.'' We propose to make 
this same change in the heading of Sec.  404.1586(g).
    We propose to revise Sec.  404.1597(a) to eliminate the references 
to November 1980 and December 1980, to remove reference to ``an 
appropriate vocational rehabilitation program'' and inserting in its 
place ``an appropriate program of vocational rehabilitation services, 
employment services, or other support services,'' and to indicate that 
the individual must have started participating in the program before 
the date his or her disability ended.
    We propose to revise Sec.  416.1331(a) and (b). We propose to 
combine the discussion of the rules in the first and third sentences of 
Sec.  416.1331(a) into a single sentence to indicate that the last 
month for which we can pay SSI benefits based on disability or 
blindness is the second month after the month in which the individual's 
disability or blindness ends. We explain that Sec.  416.1338 provides 
an exception to this rule for certain individuals who are participating 
in an appropriate program of vocational rehabilitation services, 
employment services, or other support services. We also are proposing 
to add to Sec.  416.1331(a) appropriate cross-references to the 
sections of the SSI regulations which explain when disability or 
blindness ends. In addition, we propose to remove from Sec.  
416.1331(a) the cross-reference to Sec.  416.261 which discusses 
special SSI benefits for working individuals who have a disabling 
impairment. We believe that inclusion of this cross-reference in Sec.  
416.1331 is inappropriate since Sec.  416.1331 is concerned with the 
termination of SSI benefits in cases when an individual's disability or 
blindness has ended.
    We propose to revise Sec.  416.1331(b) by removing reference to 
``an appropriate vocational rehabilitation program'' and inserting in 
its place ``an appropriate program of vocational rehabilitation 
services, employment services, or other support services.'' In 
addition, we propose to revise Sec.  416.1331(b) by inserting the term 
``or blind'' following the term ``disabled'' and inserting the term 
``or blindness'' following the term ``disability.''
    In addition to the other revisions to Sec.  416.1338, discussed 
previously, we propose to revise the section heading to read: ``If you 
are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services.''
    We propose to revise Sec.  416.1402(j) by removing ``an appropriate 
vocational rehabilitation program'' and inserting in its place ``an 
appropriate program of vocational rehabilitation services, employment 
services, or other support

[[Page 45186]]

services,'' and by adding references to ``blindness'' and ``blind.''

Regulatory Procedures

Clarity of These Proposed Rules

    Executive Order 12866, as amended by Executive Order 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 proposed 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 is 
not 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] Could we improve clarity by adding tables, lists, or 
diagrams?
    [sbull] What else could we do to make the rules easier to 
understand?

Executive Order 12866

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

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 
would primarily affect only individuals. Therefore, a regulatory 
flexibility analysis as provided in the Regulatory Flexibility Act, as 
amended, is not required.

Federalism

    We have reviewed these proposed rules under the threshold criteria 
of Executive Order 13132, ``Federalism,'' and determined that they do 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or the distribution of 
power and responsibilities among the various levels of government.

Paperwork Reduction Act

    These proposed rules contain reporting requirements at Sec. Sec.  
404.316(c), 404.327, 404.328, 404.337(c), 404.352(d), 404.1586(g), 
404.1596, 404.1597(a), 416.1321(d), 416.1331(a) and (b), and 416.1338. 
We have been collecting the information using form SSA-4290, Vocational 
Rehabilitation ``301'' Program Development, under Office of Management 
and Budget (OMB) Number 0960-0282, which expires on March 31, 2006. 
However, the changed reporting requirements described in the sections 
listed above will require revision of this form. Therefore, an 
information collection request will be submitted to OMB for clearance 
under the Paperwork Reduction Act of 1995. We estimate that it will 
take 15 minutes for approximately 9,000 respondents to provide the 
information for an estimated annual burden of 2,250 hours.
    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 should be submitted to 
OMB and the Social Security Administration at the following fax numbers 
and/or address:

Office of Management and Budget, Attn: Desk Officer for SSA, Fax 
Number: 202-395-6974.
Social Security Administration, Attn: SSA Reports Clearance Officer, 
1338 Annex Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, 
Fax Number: 410-965-6400.

    Comments can be received from between 30 and 60 days after 
publication of this notice and will be most useful if received by SSA 
within 30 days of publication. You can obtain a copy of the collection 
instrument by calling the SSA Reports Clearance Officer at 410-965-
0454.

(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, Vocational rehabilitation.

20 CFR Part 416

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

    Dated: July 23, 2003.
Jo Anne B. Barnhart,
Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend parts 
404 and 416 of chapter III of title 20 of the Code of Federal 
Regulations as set forth below:

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

Subpart D--[Amended]

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

    Authority: Secs. 202, 203(a) and (b), 205(a), 216, 223, 225, 
228(a)-(e), and 702(a)(5) of the Social Security Act (42 U.S.C. 402, 
403(a) and (b), 405(a), 416, 423, 425, 428(a)-(e), and 902(a)(5)).

    2. Section 404.316 is amended by revising paragraph (c) to read as 
follows:


Sec.  404.316  When entitlement to disability benefits begins and ends.

* * * * *
    (c)(1) Your benefits, and those of your dependents, may be 
continued after your impairment is no longer disabling if--
    (i) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  404.327(a) and (b);
    (ii) You began participating in the program before the date your 
disability ended; and
    (iii) We have determined under Sec.  404.328 that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability benefit rolls.
    (2) We generally will stop your benefits with the earliest of these 
months:
    (i) The month in which you complete the program; or
    (ii) The month in which you stop participating in the program for 
any reason (see Sec.  404.327(b) for what we mean by ``participating'' 
in the program); or
    (iii) The month in which we determine under Sec.  404.328 that your 
continuing participation in the program will no longer increase the 
likelihood that you will not have to return to the disability benefit 
rolls.
    Exception: In no case will we stop your benefits within a month 
earlier than the second month after the month your disability ends, 
provided that you

[[Page 45187]]

meet all other requirements for entitlement to and payment of benefits 
through such month.
* * * * *
    3. A new undesignated centered heading and new Sec. Sec.  404.327 
and 404.328 are added following Sec.  404.325 to read as follows:

Rules Relating to Continuation of Benefits After Your Impairment Is No 
Longer Disabling


Sec.  404.327  When you are participating in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services.

    (a) What is an appropriate program of vocational rehabilitation 
services, employment services, or other support services? An 
appropriate program of vocational rehabilitation services, employment 
services, or other support services means--
    (1) A program which is carried out under an individual work plan 
with an employment network under the Ticket to Work and Self-
Sufficiency Program under part 411 of this chapter;
    (2) A program which is carried out under an individualized plan for 
employment with a State vocational rehabilitation agency (i.e., a State 
agency administering or supervising the administration of a State plan 
approved under title I of the Rehabilitation Act of 1973, as amended) 
under 34 CFR part 361;
    (3) A program which is carried out by an organization administering 
a Vocational Rehabilitation Services Project for American Indians with 
Disabilities authorized under section 121 of part C of title I of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 750 et seq.).
    (4) A program of vocational rehabilitation services, employment 
services, or other support services which is carried out under a 
similar, individualized, written employment plan with another provider 
of services approved by us; or
    (5) An individualized education program developed under policies 
and procedures approved by the Secretary of Education for assistance to 
States for the education of children with disabilities under the 
Individuals with Disabilities Education Act, as amended (20 U.S.C. 
Sec.  1400 et seq.); you must be age 18 through age 21 for this 
provision to apply.
    (b) When are you participating in the program?
    (1) You are participating in the program described in paragraph 
(a)(1), (a)(2) or (a)(3) of this section when you are taking part in 
the activities and services outlined in your individual work plan, your 
individualized plan for employment, or your similar, individualized, 
written employment plan, as appropriate.
    (2) If you are a student age 18 through age 21 receiving services 
under an individualized education program described in paragraph (a)(4) 
of this section, you are participating in your program when you are 
taking part in the activities and services outlined in your 
individualized education program.


Sec.  404.328  When your completion of the program, or your 
continuation in the program for a specified period of time, will 
increase the likelihood that you will not have to return to the 
disability benefit rolls.

    (a) We will determine that your completion of the program, or your 
continuation in the program for a specified period of time, will 
increase the likelihood that you will not have to return to the 
disability benefit rolls if your completion of or your continuation in 
the program will provide you with--
    (1) Work experience (see Sec.  404.1565) so that you would be more 
likely able to do your past relevant work (see Sec.  404.1560(b)), 
despite a possible future reduction in your residual functional 
capacity (see Sec. Sec.  404.1545, 404.1561, and 404.1567); or
    (2) Education, work experience, or skills so that you would be more 
likely able to do other work which exists in the national economy, 
despite a possible future reduction in your residual functional 
capacity (see Sec. Sec.  404.1545, 404.1561, and 404.1567).
    (b) If you are a student age 18 through age 21 participating in an 
individualized education program described in Sec.  404.327(a)(4), we 
will find that your completion of or continuation in the program will 
increase the likelihood that you will not have to return to the 
disability benefit rolls.
    4. Section 404.337 is amended by revising paragraph (c) to read as 
follows:


Sec.  404.337  When does my entitlement to widow's and widower's 
benefits start and end?

* * * * *
    (c)(1) Your benefits may be continued after your impairment is no 
longer disabling if--
    (i) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  404.327(a) and (b);
    (ii) You began participating in the program before the date your 
disability ended; and
    (iii) We have determined under Sec.  404.328 that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability benefit rolls.
    (2) We generally will stop your benefits with the earliest of these 
months:
    (i) The month in which you complete the program; or
    (ii) The month in which you stop participating in the program for 
any reason (see Sec.  404.327(b) for what we mean by ``participating'' 
in the program); or
    (iii) The month in which we determine under Sec.  404.328 that your 
continuing participation in the program will no longer increase the 
likelihood that you will not have to return to the disability benefit 
rolls.
    Exception: In no case will we stop your benefits with a month 
earlier than the second month after the month your disability ends, 
provided that you meet all other requirements for entitlement to and 
payment of benefits through such month.
* * * * *
    5. Section 404.352 is amended by revising paragraph (d) to read as 
follows:


Sec.  404.352  When does my entitlement to child's benefits begin and 
end?

* * * * *
    (d)(1) Your benefits may be continued after your impairment is no 
longer disabling if--
    (i) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  404.327(a) and (b);
    (ii) You began participating in the program before the date your 
disability ended; and
    (iii) We have determined under Sec.  404.328 that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability benefit rolls.
    (2) We generally will stop your benefits with the earliest of these 
months:
    (i) The month in which you complete the program; or
    (ii) The month in which you stop participating in the program for 
any reason (see Sec.  404.327(b) for what we mean by ``participating'' 
in the program); or
    (iii) The month in which we determine under Sec.  404.328 that your 
continuing participation in the program will no longer increase the 
likelihood

[[Page 45188]]

that you will not have to return to the disability benefit rolls.
    Exception: In no case will we stop your benefits with a month 
earlier than the second month after the month your disability ends, 
provided that you meet all other requirements for entitlement to and 
payment of benefits through such month.
* * * * *

Subpart J--[Amended]

    6. The authority citation for subpart J of part 404 continues to 
read as follows:

    Authority: Secs. 201(j), 204(f), 205(a), (b), (d)-(h), and (j), 
221, 225, and 702(a)(5) of the Social Security Act (42 U.S.C. 
401(j), 404(f), 405(a), (b), (d)-(h), and (j), 421, 425, and 
902(a)(5)); 31 U.S.C. 3720A; sec. 5, Pub. L. 97-455, 96 Stat. 2500 
(42 U.S.C. 405 note); secs. 5, 6(c)-(e), and 15, Pub. L. 98-460, 98 
Stat. 1802 (42 U.S.C. 421 note).

    7. Section 404.902 is amended by revising paragraph (s) to read as 
follows:


Sec.  404.902  Administrative actions that are initial determinations.

* * * * *
    (s) Whether your completion of, or continuation for a specified 
period of time in, an appropriate program of vocational rehabilitation 
services, employment services, or other support services will increase 
the likelihood that you will not have to return to the disability 
benefit rolls, and thus, whether your benefits may be continued even 
though you are not disabled;
* * * * *

Subpart P--[Amended]

    8. 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.

    9. Section 404.1586 is amended by revising paragraph (g) to read as 
follows:


Sec.  404.1586  Why and when we will stop your cash benefits.

* * * * *
    (g) If you are in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services.
    (1) Your benefits, and those of your dependents, may be continued 
after your impairment is no longer disabling if--
    (i) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  404.327(a) and (b);
    (ii) You began participating in the program before the date your 
disability ended; and
    (iii) We have determined under Sec.  404.328 that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability benefit rolls.
    (2) We generally will stop your benefits with the earliest of these 
months:
    (i) The month in which you complete the program; or
    (ii) The month in which you stop participating in the program for 
any reason (see Sec.  404.327(b) for what we mean by ``participating'' 
in the program); or
    (iii) The month in which we determine under Sec.  404.328 that your 
continuing participation in the program will no longer increase the 
likelihood that you will not have to return to the disability benefit 
rolls.
    Exception: In no case will we stop your benefits with a month 
earlier than the second month after the month your disability ends, 
provided that you meet all other requirements for entitlement to and 
payment of benefits through such month.
    10. In Sec.  404.1596, the heading and introductory text of 
paragraph (c) are republished, and paragraph (c)(4) is revised to read 
as follows:


Sec.  404.1596  Circumstances under which we may suspend your benefits 
before we make a determination.

* * * * *
    (c) When we will not suspend your cash benefits. We will not 
suspend your cash benefits if--
    (4) Even though your impairment is no longer disabling,
* * * * *
    (i) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  404.327(a) and (b);
    (ii) You began participating in the program before the date your 
disability ended; and
    (iii) We have determined under Sec.  404.328 that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability benefit rolls.
    11. Section 404.1597 is amended by revising paragraph (a) to read 
as follows:


Sec.  404.1597  After we make a determination that you are not now 
disabled.

    (a) General. If we determine that you do not meet the disability 
requirements of the law, your benefits generally will stop. We will 
send you a formal written notice telling you why we believe you are not 
disabled and when your benefits should stop. If your spouse and 
children are receiving benefits on your social security number, we will 
also stop their benefits and tell them why. The notices will explain 
your right to reconsideration if you disagree with our determination. 
However, your benefits may continue even though your impairment is no 
longer disabling, if you are participating in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services (see Sec.  404.327). You must have started 
participating in the program before the date your disability ended. In 
addition, we must have determined that your completion of the program, 
or your continuation in the program for a specified period of time, 
will increase the likelihood that you will not have to return to the 
disability benefit rolls. (See Sec. Sec.  404.316(c), 404.328, 
404.337(c), 404.352(d), and 404.1586(g)). You may still appeal our 
determination that you are not disabled even though your benefits are 
continuing because of your participation in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services. You may also appeal a determination that your 
completion of the program, or your continuation in the program for a 
specified period of time, will not increase the likelihood that you 
will not have to return to the disability benefit rolls and, therefore, 
you are not entitled to continue to receive benefits.
* * * * *

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

Subpart M--[Amended]

    12. The authority citation for subpart M of part 416 is revised to 
read as follows:

    Authority: Secs. 702(a)(5), 1129A, 1611-1615, 1619, and 1631 of 
the Social Security Act (42 U.S.C. 902(a)(5), 1320a-8a, 1382-1382d, 
1382h, and 1383).

    13. Section 416.1321 is amended by revising paragraph (d) to read 
as follows:


Sec.  416.1321  Suspensions; general.

* * * * *
    (d) Exception. Even though conditions described in paragraph (a) of 
this section apply because your impairment is no longer disabling or 
you are no longer blind under Sec.  416.986(a)(1), (a)(2)

[[Page 45189]]

or (b), we will not suspend your benefits for this reason if--
    (1) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in Sec.  416.1338(c) and (d);
    (2) You began participating in the program before the date your 
disability or blindness ended; and
    (3) We have determined under Sec.  416.1338(e) that your completion 
of the program, or your continuation in the program for a specified 
period of time, will increase the likelihood that you will not have to 
return to the disability or blindness benefit rolls.
    14. Section 416.1331 is amended by revising paragraphs (a) and (b) 
to read as follows:


Sec.  416.1331  Termination of your disability or blindness payments.

    (a) General. The last month for which we can pay you benefits based 
on disability or blindness is the second month after the month in which 
your disability or blindness ends. (See Sec. Sec.  416.987(e), 
416.994(b)(6) and 416.994a(g) for when disability ends, and Sec.  
416.986 for when blindness ends.) See Sec.  416.1338 for an exception 
to this rule if you are participating in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services. You must meet the income, resources, and other 
eligibility requirements to receive any of the benefits referred to in 
this paragraph. We will also stop payment of your benefits if you have 
not cooperated with us in getting information about your disability or 
blindness.
    (b) After we make a determination that you are not now disabled or 
blind. If we determine that you do not meet the disability or blindness 
requirements of the law, we will send you an advance written notice 
telling you why we believe you are not disabled or blind and when your 
benefits should stop. The notice will explain your right to appeal if 
you disagree with our determination. You may still appeal our 
determination that you are not now disabled or blind even though your 
payments are continuing because of your participation in an appropriate 
program of vocational rehabilitation services, employment services, or 
other support services. You may also appeal a determination that your 
completion of, or continuation for a specified period of time in, an 
appropriate program of vocational rehabilitation services, employment 
services, or other support services will not increase the likelihood 
that you will not have to return to the disability or blindness benefit 
rolls and, therefore, you are not eligible to continue to receive 
benefits.
* * * * *
    15. Section 416.1338 is revised to read as follows:


Sec.  416.1338  If you are participating in an appropriate program of 
vocational rehabilitation services, employment services, or other 
support services.

    (a) When may your benefits based on disability or blindness be 
continued? Your benefits based on disability or blindness may be 
continued after your impairment is no longer disabling, you are no 
longer blind as determined under Sec.  416.986(a)(1), (a)(2) or (b), or 
your disability has ended as determined under Sec.  416.987(b) and 
(e)(1) in an age-18 redetermination, if--
    (1) You are participating in an appropriate program of vocational 
rehabilitation services, employment services, or other support 
services, as described in paragraphs (c) and (d) of this section;
    (2) You began participating in the program before the date your 
disability or blindness ended; and
    (3) We have determined under paragraph (e) of this section that 
your completion of the program, or your continuation in the program for 
a specified period of time, will increase the likelihood that you will 
not have to return to the disability or blindness benefit rolls.
    (b) When will we stop your benefits? We generally will stop your 
benefits with the earliest of these months:
    (1) The month in which you complete the program; or
    (2) The month in which you stop participating in the program for 
any reason (see paragraph (d) of this section for what we mean by 
``participating'' in the program); or
    (3) The month in which we determine under paragraph (e) of this 
section that your continuing participation in the program will no 
longer increase the likelihood that you will not have to return to the 
disability or blindness benefit rolls.
    Exception: In no case will we stop your benefits with a month 
earlier than the second month after the month your disability or 
blindness ends, provided that you are otherwise eligible for benefits 
through such month.
    (c) What is an appropriate program of vocational rehabilitation 
services, employment services, or other support services? An 
appropriate program of vocational rehabilitation services, employment 
services, or other support services means--
    (1) A program which is carried out under an individual work plan 
with an employment network under the Ticket to Work and Self-
Sufficiency Program under part 411 of this chapter;
    (2) A program which is carried out under an individualized plan for 
employment with a State vocational rehabilitation agency (i.e., a State 
agency administering or supervising the administration of a State plan 
approved under title I of the Rehabilitation Act of 1973, as amended) 
under 34 CFR part 361;
    (3) A program which is carried out by an organization administering 
a Vocational Rehabilitation Services Project for American Indians with 
Disabilities authorized under section 121 of part C of title I of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 750 et seq.).
    (4) A program of vocational rehabilitation services, employment 
services, or other support services which is carried out under a 
similar, individualized, written employment plan with another provider 
of services approved by us; or
    (5) An individualized education program developed under policies 
and procedures approved by the Secretary of Education for assistance to 
States for the education of children with disabilities under the 
Individuals with Disabilities Education Act, as amended (20 U.S.C. 1400 
et seq.); you must be age 18 through age 21 for this provision to 
apply.
    (d) When are you participating in the program?
    (1) You are participating in the program described in paragraph 
(c)(1), (c)(2), or (c)(3) of this section when you are engaging in the 
activities outlined in your individual work plan, your individualized 
plan for employment, or your similar, individualized, written 
employment plan, as appropriate.
    (2) If you are a student age 18 through age 21 taking part in 
services and activities under an individualized education program 
described in paragraph (c)(4) of this section, you are participating in 
your program when you are taking part in the activities and services 
outlined in your individualized education program.
    (e) How will we determine whether or not your completion of the 
program, or your continuation in the program for a specified period of 
time, will increase the likelihood that you will not have to return to 
the disability or blindness benefit rolls?
    (1) We will determine that your completion of the program, or your 
continuation in the program for a specified period of time, will 
increase the likelihood that you will not have to return to the 
disability or blindness

[[Page 45190]]

benefit rolls if your completion of or your continuation in the program 
will provide you with--
    (i) Work experience (see Sec.  416.965) so that you would be more 
likely able to do your past relevant work (see Sec.  416.960(b)), 
despite a possible future reduction in your residual functional 
capacity (see Sec. Sec.  416.945, 416.961, and 416.967); or
    (ii) Education (see Sec.  416.964), work experience, or skills (see 
Sec.  416.968) so that you would be more likely able to do other work 
which exists in the national economy, despite a possible future 
reduction in your residual functional capacity (see Sec. Sec.  416.945, 
416.961, and 416.967).
    (2) If you are a student age 18 through age 21 participating in an 
individualized education program described in paragraph (c)(4) of this 
section, we will find that your completion of or continuation in the 
program will increase the likelihood that you will not have to return 
to the disability or blindness benefit rolls.

Subpart N--[Amended]

    16. The authority citation for subpart N of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1631, and 1633 of the Social 
Security Act (42 U.S.C. 902(a)(5), 1383, and 1383b).

    17. Section 416.1402 is amended by revising paragraph (j) to read 
as follows:


Sec.  416.1402  Administrative actions that are initial determinations.

* * * * *
    (j) Whether your completion of, or continuation for a specified 
period of time in, an appropriate program of vocational rehabilitation 
services, employment services, or other support services will increase 
the likelihood that you will not have to return to the disability or 
blindness benefit rolls, and thus, whether your benefits may be 
continued even though you are not disabled or blind;
* * * * *
[FR Doc. 03-19541 Filed 7-31-03; 8:45 am]
BILLING CODE 4191-02-P