[Federal Register Volume 71, Number 94 (Tuesday, May 16, 2006)]
[Rules and Regulations]
[Pages 28262-28265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4530]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960-AG00


Rules for Helping Blind and Disabled Individuals Achieve Self-
Support

AGENCY: Social Security Administration.

ACTION: Final rules.

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SUMMARY: We are amending our regulations to implement section 203 of 
the Social Security Independence and Program Improvements Act of 1994. 
Section 203 of this law amended section 1633 of the Social Security Act 
to require us to establish by regulations criteria for time limits and 
other criteria related to plans to achieve self-support (PASS). The law 
requires that we establish criteria for a PASS and that when we set 
time limits for your PASS, we take into account the length of time that 
you need to achieve your employment goal, within a reasonable period.
    A PASS allows some persons who receive or are eligible for 
Supplemental Security Income (SSI) disability benefits to set aside 
part of their income and/or resources to meet an employment goal. The 
income and/or resources you set aside under a PASS will not be counted 
in determining the amount of your SSI payment or eligibility.

DATES: These final rules are effective on June 15, 2006.

Electronic Version

    The electronic file of this document is available on the date of 
publication in the Federal Register at: http://www.gpoaccess.gov/fr/index.html.

FOR FURTHER INFORMATION CONTACT: Mary Hoover, Policy Analyst, Office of 
Program Development and Research, Social Security Administration, 6401 
Security Boulevard, Baltimore, MD 21235-6401. Call 410-965-5651 or TTY 
1-800-325-0778 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. You may also contact Social 
Security Online at http://www.socialsecurity.gov/.

SUPPLEMENTARY INFORMATION:

What Is the Purpose of These Final Rules?

    In these final rules, we are amending our regulations to implement 
section 203 of the Social Security Independence and Program 
Improvements Act of 1994 (Pub. L. 103-296). This law amended section 
1633 of the Social Security Act to provide that, as of January 1, 1995, 
in establishing time limits and other criteria related to a PASS, we 
take into account the length of time that you will need to achieve your 
employment goal, within a reasonable period, and other factors as 
determined by the Commissioner to be appropriate. This requirement for 
a more individualized time limit changed the time limit requirements 
for PASS, which had provided for an initial period of not

[[Page 28263]]

more than 18 months, an extension of up to an additional 18 months, and 
a maximum of 48 months. We are revising our rules to take into account 
your individual needs and your employment goal in determining what a 
reasonable length of time is to achieve your employment goal. These 
revisions add language to some of our rules describing the information 
that must be contained in a PASS. They clarify requirements currently 
in our PASS rules and operating procedures. These revisions do not 
reflect a change in policy because after the enactment of Public Law 
103-296, we updated our operating manual to reflect the need for a more 
individualized assessment of a PASS time limit.

What Is a Plan to Achieve Self-Support (PASS)?

    A PASS allows persons who are blind or disabled and who receive, 
are eligible for, or are applying for SSI, to set aside income and/or 
resources for expenses needed in meeting an employment goal. We will 
not count the income and/or resources set aside under a PASS in 
determining your eligibility for and receipt of SSI. If you receive 
title II disability benefits, you may also use a PASS to meet an 
employment goal if you:
     Would meet all other income and resource eligibility 
requirements for SSI if some or all of your title II benefit was 
excluded;
     Apply for SSI; and
     Develop an approved PASS that sets aside some or all of 
your title II benefit towards meeting an employment goal.
    The purpose of a PASS is to help persons who are blind or disabled 
become self-supporting. A PASS must meet specific requirements that are 
set out in our regulations at 20 CFR 416.1180 through 416.1182 and in 
chapter SI 00870 of our Program Operations Manual at: http://policy.ssa.gov/poms.nsf/partlist?OpenView. It must be individualized 
with an employment goal that is feasible and with a plan to reach that 
employment goal that is viable for you. It must be in writing, contain 
reasonable start and ending dates for meeting your employment goal, and 
establish target dates for milestones, i.e., intermediate steps towards 
attainment of your goal. It must be approved by us, and we will review 
your progress under the plan at least annually.

What Revisions Are We Making and Why?

    As of January 1, 1995, section 1633(d) of the Act has required 
that, in establishing time limits and other criteria for a PASS, we 
consider the reasonable amount of time that you need to meet your 
employment goal and other factors that we determine are appropriate.
    We are revising our rules to eliminate the current monthly time 
limits and to add rules that will take into account your individual 
needs and your employment goal in determining what a reasonable length 
of time is for you to achieve that goal. These revisions describe the 
requirements for and contents of a PASS to clarify requirements 
currently in our PASS rules and operating procedures. These revisions 
clarify that a PASS must have a feasible employment goal, a viable plan 
to reach that goal, and have reasonable beginning and ending dates, 
including target dates for milestones toward completion of the goal. 
The revisions state that we will review progress under a plan at least 
annually. We will help you establish a reasonable ending date for your 
PASS. We may adjust or extend the ending date of your PASS based on 
progress towards your goal and earnings level reached. We will review 
your PASS progress at least annually to determine if you continue to 
follow the provisions of your PASS.

Specific Changes

    The following is an explanation of the specific changes we are 
making. We are revising Sec.  416.1180 by adding that we will exclude 
income used to meet expenses that are reasonable and necessary to 
fulfill an approved PASS and to make a minor change in terminology. In 
addition, we are revising Sec.  416.1225 to clarify that we will not 
count resources that are used for expenses that are reasonable and 
necessary to fulfill a PASS. Requiring that the expenses be reasonable 
and necessary to fulfill a PASS is not a change in policy. It is 
contained in our operating procedures.
    We are revising Sec.  416.1181 to list the requirements of a PASS 
that sets aside income to meet an employment goal and Sec.  416.1226 to 
list the requirements of a PASS that sets aside resources to meet an 
employment goal. A PASS must be individualized, be in writing, specify 
an employment goal that is feasible, include a plan to reach the goal 
that is viable for you, and contain a start date, ending date and 
target milestone dates for meeting your employment goal. You must 
propose a reasonable ending date to your PASS. If necessary, we will 
help you establish an ending date, which may be different than the 
ending date that you propose. Before you begin your PASS, we must 
approve it. After your PASS is approved and you begin following your 
PASS, we may adjust or extend the PASS ending date based on progress 
towards your goal and earnings level reached. We will review your PASS 
progress at least annually to determine if you continue to follow the 
provisions of your PASS.
    A PASS that sets aside income or resources must show anticipated 
expenses and explain how they are necessary for the employment goal. It 
must show anticipated income (or resources you have and will receive) 
and explain how the income or resources will be used to meet expenses 
towards the employment goal. It must show how the money or resources 
set aside under a PASS will be kept separate from other funds or 
resources. It must show how living expenses will be met while the PASS 
is in effect. If the employment goal is self-employment, it must 
include a plan that defines the business, provides a marketing 
strategy, details financial data, outlines the operational procedures, 
and describes the management plan.

Public Comments

    On July 11, 2005, we published proposed rules in the Federal 
Register (70 FR 39689) and provided a 60-day comment period. We 
received comments from five individuals and four advocacy 
organizations. All of the commenters support the implementation of 
these rules, although some requested further elaboration of specific 
terms used in the rules. Some of the commenters made recommendations 
that were outside the scope of these rules. Because some of the 
comments received were quite detailed, we have condensed, summarized or 
paraphrased them in the discussion below. We have tried to present all 
views adequately and carefully address all of the issues raised by the 
commenters that are within the scope of these rules.
    Comment: One commenter asked that we provide a better explanation 
of what we mean by a feasible employment goal and a viable plan in 
Sec. Sec.  416.1181(a)(4) and 416.1226(a)(4).
    Response: We are adopting this commenter's recommendation. We have 
expanded Sec. Sec.  416.1181(a)(4) and 416.1226(a)(4) to define what we 
mean by a feasible employment goal. A feasible employment goal is one 
that you have a reasonable likelihood of achieving. Additionally, we 
have added

[[Page 28264]]

a new Sec.  416.1181(a)(5) and Sec.  416.1226(a)(5) to explain what we 
mean by a viable plan. A plan is viable if it sets forth attainable 
steps to reach your goal and if it is financially sustainable, that is, 
the plan will leave you with enough money to meet living expenses while 
you set aside income or resources to meet your goal. We have renumbered 
the remaining paragraphs.
    Comment: Two commenters recommended that we provide an example of 
what we mean by a reasonable ending date for a PASS and that we 
delineate what we consider a reasonable period for completion of a 
PASS.
    Response: The legislation requires that we establish time limits 
that take your needs into account. We will assess your current needs, 
education, work experience, income and resources, and compare that to 
your ultimate employment goal and plan for reaching that goal, to 
determine an appropriate ending date. This is a highly individualized 
assessment. We do not believe an example would be useful, given the 
wide variety of individual factors used to determine an appropriate 
ending date. For this reason, we are not adopting this commenter's 
recommendation.
    Comment: Two commenters asked how much of a reduction is 
``substantial'' when we say that the goal should generate sufficient 
earnings to substantially reduce or eliminate your dependence on SSI or 
eliminate your need for title II benefits. These commenters also 
recommended that we provide an example.
    Response: The PASS employment goal should generate sufficient 
earnings to substantially reduce or eliminate your dependence on SSI or 
eliminate your need for title II disability benefits. The nature of a 
PASS is highly individualized and the specific financial and personal 
circumstances for each individual can vary widely; therefore, we have 
chosen not to place a numerical value on the meaning of ``substantially 
reduce your dependence on SSI'' that would apply in every situation. 
However, we agree that examples may help clarify what we mean by 
``substantial.'' Therefore, we are adopting this recommendation with 
modifications.

Regulatory Procedures

Executive Order (E.O.) 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these final rules meet the criteria for a 
significant regulatory action under E.O. 12866, as amended by E.O. 
13256. Thus, they were subject to OMB review.

Regulatory Flexibility Act

    We certify that these regulations would not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Thus, a regulatory flexibility analysis as 
provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    These final rules contain reporting requirements at 416.1181 and 
416.1226. SSA solicited public comment on the reporting burdens on July 
11, 2005 in the Federal Register (FR) at 70 FR 39689 and provided a 60-
day comment period. An Information Collection Request has been 
submitted to OMB to obtain clearance of the sections cited above. SSA 
will publish a notice providing the OMB number and expiration date once 
approved.
    To receive a copy of the OMB clearance package, you may call the 
SSA Reports Clearance Officer on 410-965-0454. Comments should be 
submitted and/or faxed to OMB and SSA at the following address/numbers:

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

(Catalog of Federal Domestic Assistance Programs 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 in 20 CFR Part 416

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

    Dated: May 8, 2006.
Jo Anne B. Barnhart,
Commissioner of Social Security.

0
For the reasons set out in the preamble, we are amending subparts K and 
L of part 416 of chapter III of title 20 of the Code of Federal 
Regulations as set forth below:

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

Subpart K--[Amended]

0
1. The authority citation for subpart K is revised to read as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, 1631, and 1633 of the Social Security Act (42 U.S.C. 
902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and 
1383b); sec. 211, Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).


0
2. The second, third and fourth sentences of Sec.  416.1180 are revised 
to read as follows:


Sec.  416.1180  General.

    * * * If you are blind or disabled, we will pay you SSI benefits 
and will not count the part of your income (for example, your or a 
family member's wages, title II benefits, or pension income) that you 
use or set aside to use for expenses that we determine to be reasonable 
and necessary to fulfill an approved plan to achieve self-support. (See 
Sec. Sec.  416.1112(c)(9) and 1124(c)(13).) You may develop a plan to 
achieve self-support on your own or with our help. * * *

0
3. Section 416.1181 is revised to read as follows:


Sec.  416.1181  What is a plan to achieve self-support (PASS)?

    (a) A PASS must--
    (1) Be designed especially for you;
    (2) Be in writing;
    (3) Be approved by us (a change of plan must also be approved by 
us);
    (4) Have a specific employment goal that is feasible for you, that 
is, a goal that you have a reasonable likelihood of achieving;
    (5) Have a plan to reach your employment goal that is viable and 
financially sustainable, that is, the plan--
    (i) Sets forth steps that are attainable in order to reach your 
goal, and
    (ii) Shows that you will have enough money to meet your living 
expenses while setting aside income or resources to reach your goal;
    (6) Be limited to one employment goal; however, the employment goal 
may be modified and any changes related to the modification must be 
made to the plan;
    (7) Show how the employment goal will generate sufficient earnings 
to substantially reduce or eliminate your dependence on SSI or 
eliminate your need for title II disability benefits;

    Example 1: A Substantial Reduction Exists. Your SSI monthly 
payment amount is $101 and your PASS employment goal earnings

[[Page 28265]]

will reduce your SSI payment by $90. We may consider that to be a 
substantial reduction.
    Example 2: A Substantial Reduction Exists. You receive a title 
II benefit of $550 and an SSI payment of $73. Your PASS employment 
goal will result in work over the SGA level that eliminates your 
title II benefit but increases your SSI payment by $90. We may 
consider that a substantial reduction because your work will 
eliminate your title II payment while only slightly increasing your 
SSI payment.
    Example 3: A Substantial Reduction Does Not Exist. Your SSI 
monthly payment amount is $603 and your PASS employment goal 
earnings will reduce your SSI payment by $90. We may not consider 
that to be a substantial reduction.

    (8) Contain a beginning date and an ending date to meet your 
employment goal;
    (9) Give target dates for meeting milestones towards your 
employment goal;
    (10) Show what expenses you will have and how they are reasonable 
and necessary to meet your employment goal;
    (11) Show what money you have and will receive, how you will use or 
spend it to attain your employment goal, and how you will meet your 
living expenses; and
    (12) Show how the money you set aside under the plan will be kept 
separate from your other funds.
    (b) You must propose a reasonable ending date for your PASS. If 
necessary, we can help you establish an ending date, which may be 
different than the ending date you propose. Once the ending date is set 
and you begin your PASS, we may adjust or extend the ending date of 
your PASS based on progress towards your goal and earnings level 
reached.
    (c) If your employment goal is self-employment, you must include a 
business plan that defines the business, provides a marketing strategy, 
details financial data, outlines the operational procedures, and 
describes the management plan.
    (d) Your progress will be reviewed at least annually to determine 
if you are following the provisions of your plan.

Subpart L--[Amended]

0
4. The authority citation for subpart L is revised to read as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, 1631, and 1633 of the Social Security Act (42 U.S.C. 
902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and 
1383b); sec. 211, Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).


0
5. Section 416.1225 is revised to read as follows:


Sec.  416.1225  An approved plan to achieve self-support; general.

    If you are blind or disabled, we will pay you SSI benefits and will 
not count resources that you use or set aside to use for expenses that 
we determine to be reasonable and necessary to fulfill an approved plan 
to achieve self-support.

0
6. Section 416.1226 is revised to read as follows:


Sec.  416.1226  What is a plan to achieve self-support (PASS)?

    (a) A PASS must--
    (1) Be designed especially for you;
    (2) Be in writing;
    (3) Be approved by us (a change of plan must also be approved by 
us);
    (4) Have a specific employment goal that is feasible for you, that 
is, a goal that you have a reasonable likelihood of achieving;
    (5) Have a plan to reach your employment goal that is viable and 
financially sustainable, that is, the plan--
    (i) Sets forth steps that are attainable in order to reach your 
goal, and
    (ii) Shows that you will have enough money to meet your living 
expenses while setting aside income or resources to reach your goal;
    (6) Be limited to one employment goal; however, the employment goal 
may be modified and any changes related to the modification must be 
made to the plan;
    (7) Show how the employment goal will generate sufficient earnings 
to substantially reduce your dependence on SSI or eliminate your need 
for title II disability benefits;

    Example 1: A Substantial Reduction Exists. Your SSI monthly 
payment amount is $101 and your PASS employment goal earnings will 
reduce your SSI payment by $90. We may consider that to be a 
substantial reduction.
    Example 2: A Substantial Reduction Exists. You receive a title 
II benefit of $550 and an SSI payment of $73. Your PASS employment 
goal will result in work over the SGA level that eliminates your 
title II benefit but increases your SSI payment by $90. We may 
consider that a substantial reduction because your work will 
eliminate your title II payment while only slightly increasing your 
SSI payment.
    Example 3: A Substantial Reduction Does Not Exist. Your SSI 
monthly payment amount is $603 and your PASS employment goal 
earnings will reduce your SSI payment by $90. We may not consider 
that to be a substantial reduction.

    (8) Contain a beginning date and an ending date to meet your 
employment goal;
    (9) Give target dates for meeting milestones towards your 
employment goal;
    (10) Show what expenses you will have and how they are reasonable 
and necessary to meet your employment goal;
    (11) Show what resources you have and will receive, how you will 
use them to attain your employment goal, and how you will meet your 
living expenses; and
    (12) Show how the resources you set aside under the plan will be 
kept separate from your other resources.
    (b) You must propose a reasonable ending date for your PASS. If 
necessary, we can help you establish an ending date, which may be 
different than the ending date you propose. Once the ending date is set 
and you begin your PASS, we may adjust or extend the ending date of 
your PASS based on progress towards your goal and earnings level 
reached.
    (c) If your employment goal is self-employment, you must include a 
business plan that defines the business, provides a marketing strategy, 
details financial data, outlines the operational procedures, and 
describes the management plan.
    (d) Your progress will be reviewed at least annually to determine 
if you are following the provisions of your plan.

[FR Doc. 06-4530 Filed 5-15-06; 8:45 am]
BILLING CODE 4191-02-P