[Federal Register Volume 64, Number 67 (Thursday, April 8, 1999)]
[Rules and Regulations]
[Pages 17100-17101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8754]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 404
[Regulations No. 4]
RIN 0960-AE03
Maximum Family Benefits in Guarantee Cases
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: This final rule amends our regulations to reflect section 310
of the Social Security Independence and Program Improvements Act of
1994. Section 310 provides that the guaranteed primary insurance amount
is to be used in establishing the maximum family benefit.
EFFECTIVE DATE: This final rule is effective April 8, 1999.
FOR FURTHER INFORMATION CONTACT: Bill Hilton, Social Insurance
Specialist, Office of Program Benefits, Social Security Administration,
3-D-25-Operations Building, 6401 Security Boulevard, Baltimore, MD
21235-6401, 410-965-2468 or TTY 410-966-5609. For information on
eligibility, claiming benefits or coverage of earnings, call our
national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778.
SUPPLEMENTARY INFORMATION: The 1977 Amendments to the Social Security
Act provided a guarantee for those receiving benefits on the Social
Security record of an insured individual who received disability
benefits at some earlier time, then stopped receiving disability
benefits, and subsequently has become entitled to retirement or
disability benefits or has died. This subsequent entitlement guarantee
provides that the basic benefit amount, called the primary insurance
amount, of the insured individual cannot be less than the primary
insurance amount in effect in the last month of the insured
individual's prior entitlement to disability benefits, increased under
certain circumstances by any cost-of-living or general benefit increase
since that time. This primary insurance amount guarantee is described
in Secs. 404.250 through 404.252 of our regulations.
The primary insurance amount guarantee of the 1977 Amendments,
however, did not extend to the maximum family benefit payable on the
insured individual's record, which is based on the primary insurance
amount. (The maximum family benefit is a limit on the total amount of
monthly benefits which may be paid for any month to an insured
individual and his or her dependents or survivors.) Thus, we were
computing the family maximum for subsequent entitlement using either
the insured individual's eligibility year of the prior entitlement to
disability or the current eligibility year. As a result, the maximum
family benefit which is payable when the insured individual becomes
reentitled to benefits or dies may be less than the maximum family
benefit payable in the last month of the insured individual's prior
entitlement to disability benefits.
Section 310 of Pub. L. 103-296, the Social Security Independence
and Program Improvements Act of 1994, amended the Social Security Act
so that the guaranteed primary insurance amount would be the basis for
calculating the guaranteed maximum family benefit under a subsequent
entitlement. The amendments made by section 310 also provide that,
where the subsequent entitlement is to retirement or survivor benefits,
we will determine the applicable maximum family benefit without
applying the disability maximum family benefit cap described in
Sec. 404.403(d-1) of our regulations. The amendments made by section
310 apply when determining the total monthly benefits to which
beneficiaries may be entitled based on the wages and self-employment
income of an insured individual who, after having been previously
entitled to disability insurance benefits, becomes entitled to
retirement benefits, becomes reentitled to disability insurance
benefits, or dies, after December 1995. Section 310 was effective for
the maximum family benefit of workers who become reentitled to benefits
or die (after previously having been entitled) after December 1995. We
have followed this statutory amendment since it became effective. We
are now amending Sec. 404.403 of our regulations by adding paragraph
(g) to reflect the changes made by section 310.
Regulatory Procedures
Justification For Final Rules
Pursuant to section 702(a)(5) of the Social Security Act, 42 U.S.C.
902(a)(5), the Social Security Administration follows the
Administrative Procedure Act (APA) rulemaking procedures specified in 5
U.S.C. 553 in the development of its regulations. The APA provides
exceptions to its prior notice and public comment procedures when an
agency finds there is good cause for dispensing with such procedures on
the basis that they are impracticable, unnecessary, or contrary to the
public interest. We have determined that, under 5 U.S.C. 553(b)(B),
good cause exists for dispensing with the prior notice and public
comment procedures in this case. This regulation simply reflects
statutory changes and does not involve the making of any discretionary
policy. Therefore, opportunity for prior comment is unnecessary and we
are issuing this change to our regulations as a final rule.
We also find good cause for dispensing with the 30-day delay in the
effective date of a substantive rule provided for by 5 U.S.C. 553(d).
As explained above, this regulation merely reflects a self-executing
statutory change that has its own effective date. We believe it would
be misleading and contrary to the public interest for the regulation to
show a later effective date, because we must compute benefits as
directed by the statute in all cases.
Executive Order 12866
We have consulted with the Office of Management and Budget (OMB)
and determined that this final rule does not meet the criteria for a
significant regulatory action under Executive Order 12866. Thus, it was
not subject to OMB review. We have also determined that these rules
meet the plain language requirement of Executive Order 12866 and the
President's memorandum of June 1, 1998.
Paperwork Reduction Act
This final regulation imposes no new reporting/recordkeeping
requirements subject to OMB clearance.
Regulatory Flexibility Act
We certify that this final regulation will not have a significant
economic
[[Page 17101]]
impact on a substantial number of small entities because it affects
only individuals. Therefore, a regulatory flexibility analysis as
provided in the Regulatory Flexibility Act, as amended, is not
required.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social
Security-Disability Insurance; 96.002, Social Security-Retirement
Insurance; and 96.004, Social Security-Survivors Insurance)
List of Subjects in 20 CFR Part 404
Administrative practice and procedure, Blind, Disability benefits,
Old-Age, Survivors and Disability Insurance, Reporting and
recordkeeping requirements, Social Security.
Dated: March 30, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.
For the reasons set out in the preamble, we are amending subpart E
of part 404 of chapter III of title 20 of the Code of Federal
Regulations as set forth below:
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
Subpart E--[Amended]
1. The authority citation for subpart E of part 404 continues to
read as follows:
Authority: Secs. 202, 203, 204(a) and (e), 205(a) and (c),
222(b), 223(e), 224, 225, and 702(a)(5) of the Social Security Act
(42 U.S.C. 402, 403, 404(a) and (e), 405(a) and (c), 422(b), 423(e),
424a, 425, and 902(a)(5)).
2. Section 404.403 is amended by adding paragraph (g) to read as
follows:
Sec. 404.403 Reduction where total monthly benefits exceed maximum
family benefits payable.
* * * * *
(g) Person previously entitled to disability insurance benefits. If
an insured individual who was previously entitled to disability
insurance benefits becomes entitled to a ``second entitlement'' as
defined in Sec. 404.250, or dies, after 1995, and the insured
individual's primary insurance amount is determined under
Secs. 404.251(a)(1), 404.251(b)(1), or 404.252(b), the monthly maximum
during the second entitlement is determined under the following rules:
(1) If the primary insurance amount is determined under
Secs. 404.251(a)(1) or 404.251(b)(1), the monthly maximum equals the
maximum in the last month of the insured individual's earlier
entitlement to disability benefits, increased by any cost-of-living or
ad hoc increases since then.
(2) If the primary insurance amount is determined under
Sec. 404.252(b), the monthly maximum equals the maximum in the last
month of the insured individual's earlier entitlement to disability
benefits.
(3) Notwithstanding paragraphs (g)(1) and (g)(2) of this section,
if the second entitlement is due to the insured individual's retirement
or death, and the monthly maximum in the last month of the insured
individual's earlier entitlement to disability benefits was computed
under paragraph (d-1) of this section, the monthly maximum is equal to
the maximum that would have been determined for the last month of such
earlier entitlement if computed without regard for paragraph (d-1) of
this section.
[FR Doc. 99-8754 Filed 4-7-99; 8:45 am]
BILLING CODE 4190-29-P
