[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Proposed Rules]
[Pages 40997-40999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16330]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404 and 416
[Docket No. SSA-2007-0093]
RIN 0960-AG02
Technical Revisions to Overpayment Rules
AGENCY: Social Security Administration.
ACTION: Notice of proposed rulemaking.
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SUMMARY: These proposed rules would amend our title II regulations to
explicitly provide that we apply an underpayment due an individual to
reduce an overpayment to that individual in certain cases. Our title
XVI regulations already state this policy. Additionally, these proposed
rules reflect our procedures for collecting overpayments when a payment
of more than the correct amount is made to a representative payee on
behalf of a beneficiary after the beneficiary's death. These proposed
rules would clarify that we would collect overpayments in this
situation from only the representative payee or his estate but would
not collect these overpayments from the representative payee's spouse
or from the spouse's estate.
DATES: To be sure that your comments are considered, we must receive
them no later than September 15, 2008.
ADDRESSES: You may submit comments by any one of four methods--
Internet, facsimile, regular mail, or hand-delivery. Commenters should
not submit the same comments multiple times or by more than one method.
Regardless of which of the following methods you choose, please state
that your comments refer to Docket No. SSA-2007-0093 to ensure that we
can associate your comments with the correct regulation:
1. Federal eRulemaking portal at http://www.regulations.gov. (This
is the most expedient method for submitting your comments, and we
strongly urge you to use it.) In the ``Comment or Submission'' section
of the Web page, type ``SSA-2007-0093'', select ``Go,'' and then click
``Send a Comment or Submission.'' The Federal eRulemaking portal issues
you a tracking number when you submit a comment.
2. Telefax to (410) 966-2830.
3. Letter to the Commissioner of Social Security, P.O. Box 17703,
Baltimore, MD 21235-7703.
4. Deliver your comments to the Office of Regulations, Social
Security Administration, 922 Altmeyer Building, 6401 Security
Boulevard, Baltimore, Maryland 21235-6401, between 8 a.m. and 4:30 p.m.
on regular business days.
All comments are posted on the Federal eRulemaking portal, although
they may not appear for several days after receipt of the comment. You
may also inspect the comments on regular business days by making
arrangements with the contact person shown in this preamble.
Caution: All comments we receive from members of the public are
available for public viewing on the Federal eRulemaking portal at
http://www.regulations.gov. Therefore, you should be careful to include
in your comments only information that you wish to make publicly
available on the Internet. We strongly urge you not to include any
personal information, such as your Social Security number or medical
information, in your comments.
FOR FURTHER INFORMATION CONTACT: Joshua Silverman, Office of
Regulations, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235-6401, (410) 594-2128, for information about these
rules. For information on eligibility or filing for benefits, call our
national toll-free
[[Page 40998]]
number, 1-800-772-1213 or TTY 1-800-325-0778, or visit our Internet
site, Social Security Online, at http://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
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.
Explanation of Changes
Reducing Overpayments
We can apply underpayments to reduce overpayments. 42 U.S.C.
404(a)(1)(A) and 1383(b)(1)(A). Our current title XVI regulations
explicitly provide that we ``apply any underpayment due an individual
to reduce any overpayment to that individual that we determine to exist
* * * for a different period, unless we have waived recovery of the
overpayment * * *.'' 20 CFR 416.543. However, there is no parallel
section in our current title II regulations. We propose to modify our
regulations to reflect our current process of applying underpayments to
reduce overpayments under title II.
We propose to amend 20 CFR 404.503 to state that we will apply any
underpayment due an individual to reduce any overpayment owed by that
individual that we determine to exist for a different period, unless we
waive recovery. In cases when the underpaid individual has died, we
will make the adjustment before distributing any underpayment according
to the priority list in 20 CFR 404.503(b).
Overpayments Made to Representative Payees
Under title II, we currently collect overpayments from an overpaid
beneficiary, from any other beneficiary entitled to benefits based an
overpaid beneficiary's earnings, or from the estate of a deceased
overpaid individual. 20 CFR 404.502. Under title XVI, we may collect
overpayments from the overpaid recipient, his eligible spouse, or the
recipient's or eligible spouse's estate if one of them dies before we
finish collecting the overpayment. 20 CFR 416.570.
When a representative payee receives benefits on behalf of a
beneficiary, we generally collect any overpayment using these same
procedures. However, when a representative payee receives benefits
intended for a beneficiary after the beneficiary has died, the
representative payee is liable for repaying the overpayment. 42 U.S.C.
Sec. Sec. 404(a)(2) and 1383(b)(2). While these amendments became
effective on December 14, 2000, we are now proposing to update our
regulations to reflect these statutory changes.
These proposed rules would clarify that we collect these
overpayments solely from the representative payee's benefits and his
estate. We do not collect from the benefits of the representative
payee's spouse, the estate of the spouse, the auxiliaries of the
overpaid representative payee, or the deceased beneficiary's estate. We
would continue to use all other means for collecting such overpayments
allowed by federal law, including cross-program recovery,
administrative offset, tax refund offset, administrative wage
garnishment, and federal salary offset. See 20 CFR 404.520, 404.527,
404.530, 416.572, 416.580, 416.590, 422.310, and 422.403.
For title II, we propose to add a new paragraph, 404.502(a)(3),
which would state that we apply the procedures found in paragraph
404.502(a)(1) to recover an overpayment made to a representative payee
after the death of a beneficiary. In this situation, we will not
recover these overpayments from any other individual entitled to
benefits based on the beneficiary's earnings because only the
representative payee or his estate is liable for repayment. We also
propose to add paragraph 404.502(b)(5) to state that, if an overpaid
representative payee dies before we recover the full amount of the
overpayment, we would collect the overpayment from the representative
payee's estate, but we would not adjust the benefits based on the
representative payee's record owed to the representative payee's spouse
or children.
For title XVI, we propose to redesignate the existing language in
416.570 as paragraph (a) and to add a new paragraph (b). This new
paragraph would provide that some of the procedures in paragraph (a)
would apply to recover overpayments from a representative payee or his
estate. We would clarify that we would not adjust benefits owed to the
representative payee's eligible spouse or the eligible spouse's estate
because only the representative payee is liable.
Regulatory Procedures
Clarity of These Proposed Rules
Executive Order (E.O.) 12866, as amended, requires each agency to
write all rules in plain language. In addition to your substantive
comments on these final rules, we invite your comments on how to make
them easier to understand.
For example:
Have we organized the material to suit your needs?
Are the requirements in the rules clearly stated?
Do the rules contain technical language or jargon that
isn't clear?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the rules easier to understand?
Would more (but shorter) sections be better?
Could we improve clarity by adding tables, lists, or
diagrams?
What else could we do to make the rules easier to
understand?
Regulatory Procedures
Executive Order 12866, as Amended
We have consulted with the Office of Management and Budget (OMB)
and determined that these proposed rules do not meet the criteria for a
significant regulatory action under Executive Order 12866, as amended.
Thus, they were not subject to OMB review.
Regulatory Flexibility Act
We certify that these proposed rules will not have a significant
economic impact on a substantial number of small entities as they
affect individuals only. Therefore, a regulatory flexibility analysis
as provided in the Regulatory Flexibility Act, as amended, is not
required.
Paperwork Reduction Act
This rule will impose no additional reporting or recordkeeping
requirements requiring OMB clearance.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social
Security--Disability Insurance; 96.002, Social Security--Retirement
Insurance; 96.004, Social Security--Survivors Insurance; 96.006,
Supplemental Security Income)
List of Subjects
20 CFR Part 404
Administrative practice and procedure, Blind, Disability benefits,
Old-age, Survivors and Disability Insurance, Reporting and
recordkeeping requirements, Social security.
20 CFR Part 416
Administrative practice and procedure, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI).
Dated: July 10, 2008.
Michael J. Astrue,
Commissioner of Social Security.
For the reasons set forth in the preamble, we are proposing to
amend subpart F of part 404 and subpart E of Part 416 of chapter III of
title 20 of the
[[Page 40999]]
Code of Federal Regulations as set forth below:
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
Subpart F--[Amended]
1. The authority citation for subpart F of part 404 continues to
read as follows:
Authority: Secs. 204, 205(a), 702(a)(5), and 1147 of the Social
Security Act (42 U.S.C. 404, 405(a), 902(a)(5), and 1320b-17); 31
U.S.C. 3720A.
2. Amend Sec. 404.502 by adding paragraphs (a)(3) and (b)(5) to
read as follows:
Sec. 404.502 Overpayments.
* * * * *
(a) * * *
(3) If a representative payee receives a payment on behalf of a
beneficiary after that beneficiary dies, the representative payee or
his estate is solely liable for repaying the overpayment. If the
representative payee is entitled to a monthly benefit or a lump sum
under title II of the Act at the time we determine that an overpayment
exists or at any time thereafter, except as provided in paragraphs (c)
and (d) of this section, we will not pay the monthly benefits or the
lump sum to the representative payee until the amount of the
overpayment has been repaid. We will make such adjustments against any
monthly benefit or lump sum under title II of the Act to which the
representative payee is entitled whether payable on the basis of such
representative payee's earnings or the earnings of another individual.
(b) * * *
(5) The methods in paragraphs (b)(1) and (b)(2) of this section for
overpayments owed by a representative payee for payments made after the
beneficiary's death. We will not recover such overpayments from any
person other than the individual who was representative payee or his
estate, but may be recovered from such other person under Sec.
404.503(b).
* * * * *
3. Amend Sec. 404.503 by adding a second sentence to paragraph (a)
and revising paragraph (b) to read as follows:
Sec. 404.503 Underpayments.
* * * * *
(a) Individual underpaid is living. * * * However, if we determine
that the individual to whom an underpayment is due also received an
overpayment as defined in Sec. 404.501(a) for a different period, we
will apply any underpayment due the individual to reduce that
overpayment, unless we have waived recovery of the overpayment under
the provisions of Sec. Sec. 404.506 through 404.512.
(b) Individual dies before adjustment of underpayment. If an
individual who has been underpaid dies before receiving payment or
negotiating a check or checks representing such payment, we first apply
any amounts due the deceased individual against any overpayments as
defined in Sec. 404.501(a) owed by the deceased individual, unless we
have waived recovery of such overpayment under the provisions of
Sec. Sec. 404.506 through 404.512. We then will distribute any
remaining underpayment to the living person (or persons) in the highest
order of priority as follows:
* * * * *
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart E--[Amended]
4. The authority citation for subpart E of part 416 continues to
read as follows:
Authority: Secs. 702(a)(5), 1147, 1601, 1602, 1611(c) and (e),
and 1631(a)-(d) and (g) of the Social Security Act (42 U.S.C.
902(a)(5), 1320b-17, 1381, 1381a, 1382(c) and (e), and 1383(a)-(d)
and (g)); 31 U.S.C. 3720A.
5. Amend Sec. 416.570 by revising the section heading,
redesignating the existing text as paragraph (a), adding a heading to
redesignated paragraph (a), and adding new paragraph (b) to read as
follows:
Sec. 416.570 Adjustment.
(a) General. * * *
(b) Overpayment made to representative payee after the
beneficiary's death. A representative payee or his estate is solely
liable for repaying an overpayment made to the representative payee on
behalf of a recipient after the recipient's death. In such case, we
will recover the overpayment according to paragraph (a) of this
section, except that:
(1) We will not adjust any other payment due to the eligible spouse
of the overpaid representative payee to recover the overpayment, and
(2) If the overpaid representative payee dies before we complete
adjustment, we will not seek to recover the overpayment from the
eligible spouse or his estate.
[FR Doc. E8-16330 Filed 7-16-08; 8:45 am]
BILLING CODE 4191-02-P