[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Rules and Regulations]
[Pages 7551-7552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3380]


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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: Final rule.

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SUMMARY: We are revising our regulations to allow a representative 
payee who will no longer be serving in that capacity to transfer 
accumulated benefit payments and interest directly to a beneficiary if 
we determine that it would be in the best interest of the beneficiary. 
This change will give us more flexibility in deciding how conserved 
funds should be handled in these circumstances. The change will also 
reduce or eliminate delays in the delivery of conserved funds to some 
beneficiaries.

DATES: This final rule will be effective March 24, 2010.

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 
transfer funds directly 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 current regulatory process is particularly problematic for 
those beneficiaries who make the transition 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 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 are revising 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 change will 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 will conserve 
administrative resources and provide faster access to beneficiaries who 
have become capable of managing their own benefits.

Public Comments

    On October 14, 2009, we published a notice of proposed rulemaking 
(NPRM) in the Federal Register and provided a 60-day comment period. 74 
FR 52706. We received one letter with comments. We carefully considered 
the comments in publishing this final rule.
    Comment: The commenter is an employee of another federal agency who 
deals with our beneficiaries and payment centers. The commenter 
supports the changes and believes the changes will benefit us and our 
beneficiaries. The commenter further notes that ``it is essential that 
funds still be available to the beneficiary especially in economic 
recession periods.'' The commenter asks how the changes will affect 
current rules on reissuing benefits if the payee misused funds, how the 
replaced funds will be handled during the transfer, and whether there 
is an order of importance in selecting the new payee.
    Response: We appreciate the commenter's support. The changes will 
allow a representative payee who will no longer be serving in that 
capacity to transfer accumulated benefit payments and interest directly 
to a beneficiary if we direct the representative payee to do so. The 
changes will not otherwise affect our current rules on reissuing 
benefits if a payee misused funds, how the replaced benefits will be 
handled, or how we choose a payee.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that this final rule does not

[[Page 7552]]

meet the requirements for a significant regulatory action under 
Executive Order 12866. Thus, it was not reviewed by OMB.

Regulatory Flexibility Act

    We certify that this final rule will not have a significant 
economic impact on a substantial number of small entities because it 
affects primarily individuals. Therefore, a regulatory flexibility 
analysis is not required under the Regulatory Flexibility Act, as 
amended.

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: February 4, 2010.
Michael J. Astrue,
Commissioner of Social Security.

0
For the reasons set out in the preamble, we 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]

0
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)).


0
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]

0
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)).


0
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. 2010-3380 Filed 2-19-10; 8:45 am]
BILLING CODE 4191-02-P