[The Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Social Security Administration Regulatory Plan]
[From the U.S. Government Printing Office, www.gpo.gov]

Federal Register / Vol. 61, No. 231 / Friday, November 29, 1996 / The
                            Regulatory Plan

[[Page 62194]]

SOCIAL SECURITY ADMINISTRATION (SSA)
Statement of Regulatory Priorities
The Social Security Administration (SSA) administers the retirement, 
survivors, and disability insurance programs under title II of the 
Social Security Act (the Act) and the supplemental security income 
(SSI) program under title XVI of the Act. For the most part, SSA's 
regulations do not impose burdens on the private sector or on State or 
local governments. Our regulations codify the requirements for 
entitlement to benefits under the programs we administer.
SSA's eight entries for The Regulatory Plan represent areas of major 
importance in benefit program administration of the retirement, 
disability, and supplemental security income programs.
In response to the Reinventing Government Initiative to create a 
Federal Government that works better and costs less, SSA lists three 
regulatory initiatives. Cycling Payment of Social Security Benefits for 
future beneficiaries is designed to pay social security benefits on 
several payment dates each month instead of making all the payments on 
the same date, as is our current practice. The current use of one 
payment date creates a workload spike each month for SSA, for other 
Federal agencies, and for financial institutions and other businesses 
which participate in or depend on issuance of social security benefits. 
Spreading the issuance of benefit payments throughout the month and 
reducing workload spikes for SSA and others will result in better 
service to our customers. We expect that our customers will have better 
access to SSA personnel and services in our field facilities and 
through use of our national 1-800 teleservice network. Current 
beneficiaries can expect to continue to receive their benefit payments 
on the third of each month. The additional payment dates will be 
assigned to new beneficiaries as their benefit awards are processed.
Our second entry related to a Reinventing Government Initiative is 
Enumeration of Aliens With the Immigration and Naturalization Service 
(INS). The goal of this process is to coordinate services to customers 
who, under current procedures, must deal with multiple Federal agencies 
to establish their status as alien residents of the United States. The 
proposed regulatory authority would support a pilot project with INS 
whereby it would transmit data to SSA electronically so that SSA can 
issue social security numbers to certain resident aliens.
Our third entry related to a Reinventing Government Initiative is the 
Elimination of Mandatory Annual Earnings Reports. These regulations, 
proposed in the spirit of improved service to the public, concern 
beneficiaries who are under age 70 and who work and earn more than the 
applicable exempt amount. Currently, these beneficiaries are required 
to report their earnings to the Social Security Administration (SSA) 
within 3 months and 15 days following the close of their tax year 
(usually April 15). Under these proposed rules, beneficiaries, in most 
instances, will not have to file a report. Instead, we will consider 
the W-2 report filed by the employer with SSA or the self-employment 
income tax return filed by the beneficiary with the Internal Revenue 
Service to be the report of earnings. We will use the information 
(wages and net earnings from self-employment) contained in those 
reports to adjust benefits under the earnings test.
SSA is currently testing elements of a reenginered disability process 
that, when fully tested and implemented, will prove that complex 
Government operations can deliver dramatically better customer service 
at a lower cost. Successful implementation of the reengineered 
disability process is one of the highest priorities of the Social 
Security Administration. Four of SSA's eight regulations on The 
Regulatory Plan implement parts of the Disability Redesign.
Three of our entries implement several proposals of our Process 
Unification Initiative. The aim of the Process Unification Initiative 
is to foster use of the same adjudicative standards by disability 
adjudicators at all levels of adjudication. The first, Weight of 
Disability Determination Service (DDS) Medical Consultant Opinions, 
will define the specific weight to be given to DDS medical consultant 
opinions in hearing decisions. The second, Assessment of Residual 
Functional Capacity, will clarify the guidelines in our regulations 
used in determining whether an individual lacks the capacity to perform 
less than a full range of sedentary work. The third, Quality Review of 
Administrative Law Judges' Decisions, provides for a preeffectuation 
review of decisions made by Office of Hearings and Appeals (OHA) 
administrative law judges. Favorable decisions that appear to be 
unsupported by the evidence of record will be forwarded to the OHA 
Appeals Council for review in accordance with 20 CFR 404.970 or 
416.1470.

The fourth regulatory initiative related to Disability Redesign, 
Prehearing Procedures and Decisions by Adjudication Officers, will 
establish the position of an adjudication officer who will be the focal 
point for all prehearing activities when a request for a hearing before 
an ALJ is filed. These procedures are currently being tested in a 
number of locations throughout the United States. We plan to publish 
regulations to implement the procedures nationally only after 
completion of testing and evaluation of the test procedures.

We are also including in this year's Plan regulations which will 
implement provisions of The Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Welfare Reform), Public Law 
104-193. The changes modify the standard of disability for children 
under the Supplemental Security Income program.

Consistent with the President's Regulatory Reinvention Initiative, we 
are working diligently to improve our program benefit regulations and 
to develop partnerships with large segments of the community of 
stakeholders interested in Social Security programs. We expect that the 
partnerships will contribute to the successful development of our 
Regulatory Plan entries.

_______________________________________________________________________

SSA

                              -----------

                          PROPOSED RULE STAGE

                              -----------


149. PERMIT DEPARTMENT OF STATE AND IMMIGRATION AND NATURALIZATION 
SERVICE TO COLLECT INFORMATION NEEDED TO ASSIGN SOCIAL SECURITY NUMBERS 
TO ALIENS (569P)

Priority:


Other Significant

Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.

Legal Authority:


 42 USC 405; 42 USC 1383

[[Page 62195]]

CFR Citation:


 20 CFR 422.103; 20 CFR 422.106; 20 CFR 422.107; 20 CFR 422.110


Legal Deadline:


None


Abstract:


Aliens will apply for Social Security cards at the same time they 
complete Immigration and Naturalization Services (INS) paperwork. 
Currently, alien applicants are required to furnish almost the same 
information to both SSA and INS. This one-stop service will reduce the 
potential for issuing social security cards based on fraudulent INS 
documents, and will result in efficiencies for the Government.


Statement of Need:


This regulation is necessary to implement a Reinventing Government 
initiative.


Summary of the Legal Basis:


These changes are not required by statute or court order.


Alternatives:


None.


Anticipated Costs and Benefits:


We will need to reimburse INS for the enumeration work they perform. We 
estimate that there is a 20% greater efficiency to the government if 
INS gathers the information to enumerate these applicants. After 
reimbursing INS, we expect to save approximately $13 million for the 
period 1998 - 2002.


Risks:


At this time we have not identified any risks associated with the 
proposal.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           02/00/97
Small Entities Affected:


None


Government Levels Affected:


Federal


Agency Contact:
Daniel T. Bridgewater
Legal Assistant
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-3298
RIN: 0960-AE36
_______________________________________________________________________
SSA
150.  ASSESSMENT OF RESIDUAL FUNCTIONAL CAPACITY (599P)
Priority:


Other Significant


Legal Authority:


 42 USC 423; 42 USC 405(a); 42 USC 902(a)(5)


CFR Citation:


 20 CFR 404.1500, app2


Legal Deadline:


None


Abstract:


This rule would make minor clarification to the Social Security 
Medical-Vocational guidelines used to evaluate disability in 
individuals under age 50 who have severe impairments that do not meet 
or equal the criteria of any listed impairment but have a residual 
functional capacity for no more than the full range of sedentary work. 
The guidelines are contained in appendix 2 of Subpart P of 20 CFR 404.


Statement of Need:


This regulation is necessary to implement one of several process 
unification initiatives approved by the Commissioner on July 8, 1996.


Summary of the Legal Basis:


None.


Alternatives:


None.


Anticipated Costs and Benefits:


Since these regulations merely clarify existing policy, they impose no 
additional program or administrative costs.


Risks:


None--Because the only purpose of these regulations is to clarify 
existing policy.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           03/00/97
Final Action                                                   09/00/97
Small Entities Affected:


None


Government Levels Affected:


None


Agency Contact:
Robert J. Augustine
Legal Assistant
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 966-5121
RIN: 0960-AE42
_______________________________________________________________________
SSA
151.  ELIMINATION OF MANDATORY ANNUAL EARNINGS REPORTS (592P)
Priority:


Other Significant


Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.


Legal Authority:


 42 USC 403; 42 USC 902


CFR Citation:


 20 CFR 404.452


Legal Deadline:


None


Abstract:


This Reinventing Government initiative will amend our regulations 
regarding reports of earnings to the Social Security Administration 
(SSA) required of beneficiaries who work and earn more than the 
applicable exempt amount. Beneficiaries under age 70, who work and earn 
more than the applicable exempt amount, are required by law to report 
their earnings to SSA within three months and 15 days following the 
close of their tax year (usually April 15). As a result of our ongoing 
efforts both to improve customer service and to reduce the public's 
paperwork burden, we will change our regulations to state that we will 
accept, for most beneficiaries, the W-2 report filed by the employer 
with SSA, and/or the self-employment income tax return filed by the 
beneficiary with the Internal Revenue Service (IRS) as the report of 
earnings. We will use the information (wages and net earnings from 
self-employment) contained in those reports to adjust benefits under 
the earnings test.


Statement of Need:


This regulation is necessary to implement a Reinventing Government 
initiative.

[[Page 62196]]

Summary of the Legal Basis:


These changes are not required by statute or court order.


Alternatives:


None.


Anticipated Costs and Benefits:


This change is proposed in order to help the Agency improve its service 
to the public by reducing the public reporting burden associated with 
the annual report of earnings. This reduction will permit the Agency to 
divert its resources to other workloads, such as processing claims for 
benefits and responding to telephone inquiries. We estimate that this 
change will, when implemented, will reduce the annual public reporting 
burden by 330,833 hours, the amount currently associated with the 
completion and filing of forms SSA-777 and SSA-7770 (OMB Control Number 
0960-0057).


Risks:


This change in mandatory annual reporting of earnings should pose no 
risks to our customers.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           01/00/97
Final Action                                                   00/00/00
Small Entities Affected:


Undetermined


Government Levels Affected:


Undetermined


Agency Contact:
Robert J. Augustine
Legal Assistant
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 966-5121
RIN: 0960-AE44
_______________________________________________________________________
SSA
152.  QUALITY REVIEW OF ADMINISTRATIVE LAW JUDGES' DECISIONS
Priority:


Other Significant


Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.


Legal Authority:


 31 USC 3720A; 42 USC 401(j); 42 USC 405(a); 42 USC 405(b); 42 USC 
405(d) to 405(h); 42 USC 405(j); 42 USC 421(d); 42 USC 423(h); 42 USC 
425; 42 USC 902(a)(5); PL 96-265, sec 304(g)


CFR Citation:


 20 CFR 404.900ff; 20 CFR 416.1400ff


Legal Deadline:


None


Abstract:


These regulations are in furtherance of our published Plan for a New 
Disability Claim Process and, specifically, the quality assurance 
aspect of that Plan (59 FR 47918). This initiative provides for a 
preeffectuation review of a sample of decisiions made by Office of 
Hearings and Appeals (OHA) administrative law judges. Decisions that 
appear to be unsupported by the evidence of record will be forwarded to 
the OHA Appeals Council for review in accordance with 20 CFR 404.970 or 
416.1470. These regulations will set out the procedures by which we 
will identify and refer these cases to the Appeals Council for quality 
review under its existing authority to review cases on its own motion.


Statement of Need:


This regulation is necessary to implement one of several process 
unification initiatives approved by the Commissioner on July 8, 1996.


Summary of the Legal Basis:


None.


Alternatives:


None.


Anticipated Costs and Benefits:


We do not anticipate any additional program or administrative costs.


Risks:


At this time we have not identified any risks associated with the 
proposal.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           12/00/96
Final Action                                                   04/00/97
Small Entities Affected:


None


Government Levels Affected:


Federal


Agency Contact:
Martin Sussman
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-1767
RIN: 0960-AE53
_______________________________________________________________________
SSA
153.  IMPLEMENTING MODIFICATIONS TO PREHEARING PROCEDURES AND 
DECISIONS BY ADJUDICATION OFFICERS (616P)
Priority:


Other Significant


Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.


Legal Authority:


 31 USC 3720A; 42 USC 401(j); 42 USC 405(a); 42 USC 405(b); 42 USC 
405(d) to 405(h); 42 USC 421(d); 42 USC 425; 42 USC 902(a)(5)


CFR Citation:


 20 CFR 404.943 (New); 20 CFR 416.1443 (New)


Legal Deadline:


None


Abstract:


We are amending our rules to implement use of an adjudication officer, 
who, under the Plan for a New Disability Claim Process approved by the 
Commissioner of Social Security in September 1994 (the disability 
redesign plan), would be the focal point for all prehearing activities 
when a request for a hearing before an administrative law judge (ALJ) 
is filed. The adjudication officer position is an integral part of the 
disability redesign plan. These proposed rules will add several new 
sections setting out the responsibilities of the adjudication officer 
in connection with a claim for Social Security or Supplemental Security 
Income (SSI) benefits based on disability.


Statement of Need:


These regulations are needed to implement a major initiative discussed 
in the Plan for a New Disability Claim Process approved by the 
Commissioner of Social Security in September 1994 (the disability 
redesign plan).

[[Page 62197]]

Summary of the Legal Basis:


None.


Alternatives:


None.


Anticipated Costs and Benefits:


No program costs are expected. There will be some administrative costs 
as a result of setting up these new positions in the field offices. 
However we expect these costs to be offset by subsequent processing 
efficiencies resulting in significant administrative savings.


Risks:


At this time we have not identified any risks associated with the 
proposal.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           01/00/97
Final Action                                                   06/00/97
Small Entities Affected:


None


Government Levels Affected:


Federal


Agency Contact:
Harry J. Short
Legal Assistant
3-C-3 Operations
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-6243
RIN: 0960-AE55
_______________________________________________________________________
SSA
154.  WEIGHT OF DISABILITY DETERMINATION SERVICES' MEDICAL 
PSYCHOLOGICAL CONSULTANT'S OPINIONS
Priority:


Other Significant


Legal Authority:


 42 USC 405(a); 42 USC 405(b); 42 USC 902(c)(5); 42 USC 1382C; 42 USC 
221


CFR Citation:


 20 CFR 404.1502; 20 CFR 404.1512; 20 CFR 404.1513; 20 CFR 404.1519; 20 
CFR 404.1527; 20 CFR 416.902; 20 CFR 416.912; 20 CFR 416.913; 20 CFR 
416.919; 20 CFR 416.927


Legal Deadline:


None


Abstract:


We propose to revise our disability regulations to clarify the weight 
administrative law judges and the Appeals Council are to give to 
opinion evidence from State agency medical and psychological 
consultants, other program physicians and psychologists, and medical 
experts in claims for disability benefits under title II and title XVI 
of the Social Security Act.


Statement of Need:


This regulation is necessary to implement one of several process 
unification initiatives approved by the Commissioner on July 8, 1996.


Summary of the Legal Basis:


None.


Alternatives:


None.


Anticipated Costs and Benefits:


We do not anticipate any additional program or administrative costs.


Risks:


At this time we have not identified any risks associated with the 
proposal.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           11/00/96
Final Action                                                   04/00/97
Small Entities Affected:


None


Government Levels Affected:


Federal


Agency Contact:
Martin Sussman
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-1767
RIN: 0960-AE56
_______________________________________________________________________
SSA

                              -----------

                            FINAL RULE STAGE

                              -----------

155. CYCLING PAYMENT OF SOCIAL SECURITY BENEFITS (558F)
Priority:


Economically Significant. Major under 5 USC 801.


Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.


Legal Authority:


 42 USC 405(a); 42 USC 407; 42 USC 902(a)(5); 42 USC 401(j); 42 USC 
405(b); 42 USC 405(d) to 405(i); 42 USC 421(d); 42 USC 405(i); 42 USC 
909


CFR Citation:


 20 CFR 404.1805; 20 CFR 404.903


Legal Deadline:


None


Abstract:


This Reinventing Government initiative will result in staggered payment 
to new beneficiaries over a number of payment dates throughout the 
month to eliminate workload spikes and allow the Social Security 
Administration to provide better customer service without adding staff. 
Current beneficiaries and all Supplemental Security Income recipients 
will be unaffected by these regulatory changes.


Statement of Need:


This regulation is necessary to implement a Reinventing Government 
initiative.


Summary of the Legal Basis:


These changes are not required by statute or court order.


Alternatives:


None


Anticipated Costs and Benefits:


Payment cycling is both an immediate and long-term strategy to help the 
Agency improve service and better manage its resources. By leveling 
workloads, it will allow the public better access to SSA's field office 
and toll-free 800 number services. While the change in payment patterns 
may result in some incidental savings from management and operational 
efficiencies, cycling is not expected to produce significant workyear 
savings. Cycling will benefit the business and banking communities in 
that they will be better able to utilize their resources throughout the 
month to serve their customers. Cycling will reduce the risk to the 
Federal government, the financial community, and to beneficiaries by 
reducing the volume of financial transactions passing through the 
payment system at any one time in the month.
Because benefits will be disbursed later in the month, the OASDI trust 
funds will accrue additional interest payments that will result in an 
average annualized transfer to the trust funds between fiscal years 
1997-2001 of $115

[[Page 62198]]

million with the May 1, 1997 effective date. This is neither a net 
benefit to society, nor a net cost. (Rather it is a transfer to the 
trust funds which results from extending the dates on which new 
beneficiaries would otherwise receive their payment.)


Risks:


This change to payment cycling, which will affect new beneficiaries who 
file claims on or after the effective date of the final rule, should 
pose no risks to our claimant population.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM            61 FR 2654                                     01/26/96
NPRM Comment Period End                                        03/26/96
Final Action                                                   12/00/96
Small Entities Affected:


Businesses


Government Levels Affected:


Federal


Additional Information:


This regulation change is expected to provide better service to the 
public by avoiding the heavy workloads which occur for the 800 number, 
field offices, banks, post offices, etc., when the checks come out only 
once a month.


Agency Contact:
Lois Berg
Legal Assistant
3-C-3 Operations
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-1713
RIN: 0960-AE31
_______________________________________________________________________
SSA
156.  CHILDHOOD DISABILITY
Priority:


Economically Significant


Legal Authority:


 42 USC 405(a); 42 USC 902(a)(5); PL 104-193


CFR Citation:


 20 CFR 404.1500 app 1; 20 CFR 416.901; 20 CFR 416.906; 20 CFR 416.911; 
20 CFR 416.912; 20 CFR 416.913; 20 CFR 416.919a; 20 CFR 416.919n; 20 
CFR 416.924; 20 CFR 416.924a to 416.924e; 20 CFR 416.925; 20 CFR 
416.926a; 20 CFR 416.927; 20 CFR 416.929; 20 CFR 416.987 (New); ...


Legal Deadline:


 Other, Statutory, November 1996.


90 Days After Enactment


Abstract:


These regulations will implement provisions of P.L. 104-193, the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996, (Welfare Reform), which eliminate the comparable severity 
standard for children and provides instead that a child under age 18 be 
considered under a disability if he/she has a medically determinable 
impairment which results in marked and severe functional limitations 
and which can be expected to result in death or which has lasted or can 
be expected to last for a continuous period of not less than 12 months. 
These new childhood disability eligibility criteria are applicable to 
individuals whose claims for child's disability benefits are filed on 
or after August 22, 1996, and those whose claims were not ``finally 
adjudicated'' as of August 21, 1996. In addition, these new eligibility 
criteria will also apply when redetermining a child's continuing 
eligibility for benefits.


Statement of Need:


This regulation is necessary to implement provision of P.L. 104-193.


Summary of the Legal Basis:


These regulations are required by P.L. 104-193.


Alternatives:


None.


Anticipated Costs and Benefits:


As required by the legislation we will review the claims of certain 
children currently receiving SSI Disability benefits. Benefits will be 
terminated for some of these children, and others who file new 
applications will be denied under the new standard.


Risks:


At this time we have not identified any risks associated with the 
proposal.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
Interim Final Rule                                             11/00/96
Small Entities Affected:


None


Government Levels Affected:


Federal


Agency Contact:
Daniel T. Bridgewater
Legal Assistant
3-C-3 Operations
Social Security Administration
Division of Regulations and Rulings
6401 Security Boulevard
Baltimore, MD 21235
Phone: 410 965-3298
RIN: 0960-AE57
BILLING CODE 4190-29-F