[Federal Register Volume 74, Number 197 (Wednesday, October 14, 2009)]
[Proposed Rules]
[Pages 52706-52708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24648]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Docket No. SSA-2009-0067]
RIN 0960-AH08


Transfer of Accumulated Benefit Payments

AGENCY: Social Security Administration (SSA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: We propose to amend our regulations to allow a representative 
payee who will no longer be serving in that capacity to transfer 
accumulated

[[Page 52707]]

benefit payments and interest directly to a beneficiary if we determine 
that it would be in the best interest of the beneficiary. This change 
would give us more flexibility in deciding how conserved funds should 
be handled in these circumstances. The change would also reduce or 
eliminate delays in the delivery of conserved funds to some 
beneficiaries.

DATES: To be sure that we consider your comments, we must receive them 
by December 14, 2009.

ADDRESSES: You may submit comments by any one of four methods--
Internet, fax, mail, or hand delivery. Do not submit the same comments 
multiple times or by more than one method. Regardless of which method 
you choose, please state that your comments refer to Docket No. SSA-
2009-0067 so that we may associate your comments with the correct 
regulation.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available. We strongly urge 
you not to include in your comments any personal information, such as 
Social Security numbers or medical information.
    1. Internet: We strongly recommend this method for submitting your 
comments. Visit the Federal eRulemaking portal at http://www.regulations.gov. Use the Search function of the webpage to find 
docket number SSA-2009-0067, then submit your comment. Once you submit 
your comment, the system will issue you a tracking number to confirm 
your submission. You will not be able to view your comment immediately 
as we must manually post each comment. It may take up to a week for 
your comment to be viewable.
    2. Fax: Fax comments to (410) 966-2830.
    3. Mail: Address your comments to the Commissioner of Social 
Security, P.O. Box 17703, Baltimore, MD 21235-7703.
    4. Hand delivery: Deliver your comments to the Office of 
Regulations, Social Security Administration, 137 Altmeyer Building, 
6401 Security Boulevard, Baltimore, Maryland 21235-6401, between 8 a.m. 
and 4:30 p.m., Eastern Time, business days.
    Comments are available for public viewing on the Federal 
eRulemaking portal at http://www.regulations.gov or in person, during 
regular business hours, by arranging with the contact person identified 
below.

FOR FURTHER INFORMATION CONTACT: Richard Bresnick, Office of 
Regulations, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 965-1758. 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 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.

Background

    Our representative payment regulations are in Subpart U of part 404 
and subpart F of part 416. In certain cases, we will appoint a 
representative payee to receive benefit payments on behalf of a 
beneficiary. Generally, we appoint a representative payee if we have 
determined that the beneficiary is not able to manage his or her own 
benefits or direct the management of benefit payments in his or her 
interest. The payee must use the payments only for the beneficiary's 
use and benefit. The payee must conserve or invest for the beneficiary 
any funds remaining after paying for the beneficiary's current needs.
    If a payee is no longer going to serve in that capacity, our 
regulations require the payee to return conserved funds to us or 
transfer them to a successor payee, as we will specify. The payee is 
not permitted to transfer these conserved funds to a beneficiary 
directly. 20 CFR 404.2060 and 416.660. The payee's inability to 
directly transfer funds to a beneficiary can cause difficulty for both 
the beneficiary and the representative payee. When we determine that a 
payee is no longer needed because the beneficiary has become capable of 
managing his or her own benefits, this two-step process delays our 
payment of the conserved funds to the beneficiary.
    Our regulatory process is particularly problematic for those 
beneficiaries transitioning out of foster care and for their payees. 
These beneficiaries might need immediate access to the conserved funds 
to pay for rent or other necessities. Additionally, at least one State 
law requires State agency representative payees for beneficiaries in 
foster care to turn over all conserved funds directly to the 
beneficiary when he or she transitions out of foster care.

Explanation of Changes

    We propose to revise Sec. Sec.  404.2060 and 416.660 of our 
regulations to permit a payee to transfer conserved funds to a 
beneficiary if we so specify. The proposed change would give us the 
discretion to authorize a payee-to-beneficiary transfer of conserved 
funds and make the representative payment process more efficient. 
Allowing direct transfer would conserve our scarce administrative 
resources and provide faster access to beneficiaries who have become 
capable of managing their own benefits.

Clarity of These Proposed Rules

    Executive Order 12866 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 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 is 
not 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?

When Will We Start To Use These Rules?

    We will not use these rules until we evaluate the public comments 
we receive on them, determine whether they should be issued as final 
rules, and issue final rules in the Federal Register. If we publish 
final rules, we will explain in the preamble how we will apply them, 
and summarize and respond to the significant public comments. Until the 
effective date of any final rules, we will continue to use our current 
rules.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules do not meet the requirements 
for a significant regulatory action under Executive Order 12866. Thus, 
they were not reviewed by OMB.

Regulatory Flexibility Act

    We certify that these proposed rules, if published in final, would 
not have a significant economic impact on a substantial number of small 
entities because they would affect primarily individuals. Accordingly, 
a regulatory flexibility analysis as provided in the

[[Page 52708]]

Regulatory Flexibility Act, as amended, is not required.

Paperwork Reduction Act

    This rule does not create any new, or affect any existing, 
collections, and therefore, does not require OMB approval under the 
Paperwork Reduction Act.

(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; and 96.006, 
Supplemental Security Income)

List of Subjects

20 CFR Part 404

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

20 CFR Part 416

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

    Dated: October 2, 2009.
Michael J. Astrue,
Commissioner of Social Security.
    For the reasons set out in the preamble, we propose to amend 
subpart U of part 404 and subpart F of part 416 of chapter III of title 
20 Code of Federal Regulations as set forth below:

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

Subpart U--[Amended]

    1. The authority citation for subpart U of part 404 is revised to 
read as follows:

    Authority:  Secs. 205(a), (j), and (k), and 702(a)(5) of the 
Social Security Act (42 U.S.C. 405(a), (j), and (k), and 902(a)(5)).

    2. Amend Sec.  404.2060 by revising the first sentence to read as 
follows:


Sec.  404.2060  Transfer of accumulated benefit payments.

    A representative payee who has conserved or invested benefit 
payments shall transfer these funds and the interest earned from the 
invested funds to either a successor payee, to the beneficiary, or to 
us, as we will specify. * * *

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

Subpart F--[Amended]

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

    Authority:  Secs. 702(a)(5), 1631(a)(2) and (d)(1) of the Social 
Security Act (42 U.S.C. 902(a)(5) and 1383(a)(2) and (d)(1)).

    4. Amend Sec.  416.660 by revising the first sentence to read as 
follows:


Sec.  416.660  Transfer of accumulated benefit payments.

    A representative payee who has conserved or invested benefit 
payments shall transfer these funds, and the interest earned from the 
invested funds, to either a successor payee, to the beneficiary, or to 
us, as we will specify. * * *
[FR Doc. E9-24648 Filed 10-13-09; 8:45 am]
BILLING CODE 4191-02-P