[Federal Register Volume 60, Number 153 (Wednesday, August 9, 1995)]
[Proposed Rules]
[Pages 40542-40543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19502]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
RIN 0960-AD82
Supplemental Security Income for the Aged, Blind, and Disabled;
Valuation of In-Kind Support and Maintenance With Cost-of-Living
Adjustment
AGENCY: Social Security Administration.
ACTION: Notice of proposed rulemaking.
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SUMMARY: These proposed regulations would implement section 13735 of
the Omnibus Reconciliation Act of 1993 (OBRA 1993). This statutory
provision amends the Social Security Act (the Act) and requires that
the new benefit rate, as increased by a cost-of-living adjustment
(COLA), be used in determining the value of the statutory one-third
reduction and the regulatory presumed maximum value for the computation
of Federal supplemental security income (SSI) benefit payments for the
first 2 months for which the COLA is in effect. These rules will
provide that we will value the statutory one-third reduction and the
regulatory presumed maximum value using the benefit rate as increased
by a COLA to determine the amount of in-kind support and maintenance
received by an individual which is to be counted for those months. This
will preclude a decrease in the benefit amount the third month after a
COLA, a situation which occurred under the present regulations. The
legislation is effective for benefits paid for months after calendar
year 1994.
DATES: To be sure that your comments are considered, we must receive
them no later than October 10, 1995.
ADDRESSES: Comments should be submitted in writing to the Commissioner
of Social Security, P.O. Box 1585, Baltimore, MD 21235, sent by telefax
to (410) 966-2830, sent by e-mail to regulations@ssa.gov., or delivered
to the Division of Regulations and Rulings, Social Security
Administration, 3-B-1 Operations Building, 6401 Security Boulevard,
Baltimore, MD 21235, between 8:00 a.m. and 4:30 p.m. on regular
business days. Comments received may be inspected during these same
hours by making arrangements with the contact person shown below.
The electronic file of this document is available on the Federal
Bulletin Board (FBB) at 9:00 a.m. on the date of publication in the
Federal Register. To download the file, modem dial (202) 512-1387. The
FBB instructions will explain how to download the file and the fee.
This file is in Wordperfect and will remain on the FBB during the
comment period.
FOR FURTHER INFORMATION CONTACT: Lawrence V. Dudar, Legal Assistant,
Division of Regulations and Rulings, Social Security Administration,
6401 Security Boulevard, Baltimore, MD 21235, (410) 965-1759.
SUPPLEMENTARY INFORMATION: Under retrospective monthly accounting
(RMA), an individual's current SSI benefit amount is usually determined
based upon the individual's income in the second preceding month
(``budget month'') before the current month. For example, January's SSI
benefit amount is based on the individual's November income. In some
instances, an individual receives income in the form of in-kind support
and maintenance and it is counted using the value of the one-third
reduction (VTR) or the presumed maximum value (PMV) rule. Under the law
prior to the effective date of section 13735 of Public Law 103-66, the
VTR and the PMV were based on the applicable benefit rates in effect in
the ``budget month.'' Because of RMA principles, when an annual COLA to
the SSI benefit rate became effective in January, we used the VTR/PMV
amount from November of the previous year to determine the individual's
benefit for January if an individual had in-kind support and
maintenance in the ``budget month.'' For example, in figuring an
individual's January 1994 benefit, we used November 1993 as the
``budget month.'' Thus, in a computation using the VTR, we would
subtract the 1993 VTR amount of $144.66 from the 1994 benefit rate of
$446.00, giving the individual an SSI benefit of $301.34. February's
benefit amount would also be computed using the new benefit rate and
the 1993 VTR amount. However, in computing March's benefit amount, we
used the benefit rate of $446.00 less the January 1994 VTR amount of
$148.66, resulting in an SSI benefit amount of $297.34. Thus, the
individual's January and February payments exceeded the March payment
because of the increased amount of the new VTR used when January was
the ``budget month.'' Notices were then released to these individuals
notifying them of the decrease in their March payment. This was
confusing to SSI recipients because their payment amounts increased and
then decreased even if there is no change in their living arrangements.
We propose to change the method of valuation of the VTR/PMV to
reflect section 13735 of Public Law 103-66 for benefits paid after
calendar year 1994, by using the new benefit rate as increased by a
COLA in determining the VTR or PMV for the computation of SSI benefits
for the first 2 months for which the COLA is in effect. Thus, with a
COLA effective January 1, 1995, both the new increased 1995 benefit
rate and new increased VTR or PMV amounts are being used in computing a
January and February 1995 benefit amount. Unlike the example used
previously, the individual's January, February, and March payments
calculated by using the VTR amount will be the same assuming all other
income remains constant--i.e., there will be no decrease in the SSI
benefit amount the third month after a COLA. This will eliminate
confusion for recipients and also eliminate the need for issuance of
notices informing affected recipients of the decrease in their March
payment.
We state in the proposed regulations at Sec. 416.420(a) that we
will use the benefit rate, as increased by a COLA, in determining the
value of certain in-kind support and maintenance used to compute an
individual's SSI benefit amount for the first 2 months in which the
COLA is in effect. We also propose to add a third example to
Sec. 416.420(a) to further clarify the regulatory intent.
We state in the proposed regulations at Sec. 416.1130 how we value
in-kind support and maintenance when a COLA applies and have altered
the example to reflect the situation when a COLA becomes effective.
[[Page 40543]]
Regulatory Procedures
Executive Order No. 12866
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. Thus, they
are not subject to OMB review.
Paperwork Reduction Act of 1980
These proposed regulations impose no new reporting or recordkeeping
requirements subject to OMB clearance.
Regulatory Flexibility Act
We certify that these proposed regulations will not have a
significant economic impact on a substantial number of small entities
because they affect only individuals. Therefore, a regulatory
flexibility analysis as provided in Public Law 96-354, the Regulatory
Flexibility Act, is not required.
(Catalog of Federal Domestic Assistance Program No. 96.006,
Supplemental Security Income)
List of Subjects in 20 CFR Part 416
Administrative practice and procedure, Aged, Blind, Disability
benefits, Public assistance programs, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI).
Dated: July 27, 1995.
Shirley Chater,
Commissioner of Social Security.
For the reasons set out in the preamble, subparts D and K of part
416 of chapter III of title 20 of the Code of Federal Regulations are
amended to read as follows:
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart D--Amount of Benefits
1. The authority citation for Part 416, Subpart D continues to read
as follows:
Authority: Secs. 1102, 1611(a), (b), (c), and (e), 1612, 1617,
and 1631 of the Social Security Act; 42 U.S.C. 1302, 1382(a), (b),
(c), and (e), 1382a, 1382f, and 1383.
2. Section 416.420 is amended by revising paragraph (a) to read as
follows:
Sec. 416.420 Determination of benefits; general.
* * * * *
(a) General rule. We generally use the amount of your countable
income in the second month prior to the current month to determine how
much your benefit amount will be for the current month. We will use the
benefit rate (see Secs. 416.410 through 416.414), as increased by a
cost-of-living adjustment, in determining the value of the one-third
reduction or the presumed maximum value, to compute your SSI benefit
amount for the first 2 months in which the cost-of-living adjustment is
in effect. If you have been receiving an SSI benefit and a Social
Security insurance benefit and the latter is increased on the basis of
the cost-of-living adjustment or because your benefit is recomputed, we
will compute the amount of your SSI benefit for January, the month of
an SSI benefit increase, by including in your income the amount by
which your social security benefit in January exceeds the amount of
your social security benefit in November. Similarly, we will compute
the amount of your SSI benefit for February by including in your income
the amount by which your social security benefit in February exceeds
the amount of your social security benefit in December.
Example 1. Mrs. X's benefit amount is being determined for
September (the current month). Mrs. X's countable income in July is
used to determine the benefit amount for September.
Example 2. Mr. Z's SSI benefit amount is being determined for
January (the current month). There has been a cost-of-living
increase in SSI benefits effective January. Mr. Z's countable income
in November is used to determine the benefit amount for January. In
November, Mr. Z had in-kind support and maintenance valued at the
presumed maximum value as described in Sec. 416.1140(a). We will use
the January benefit rate, as increased by the COLA, to determine the
value of the in-kind support and maintenance Mr. Z received in
November when we determine Mr. Z's SSI benefit amount for January.
Example 3. Mr. Y's SSI benefit amount is being determined for
January (the current month). Mr. Y has Social Security income of
$100 in November, $100 in December, and $105 in January. We find the
amount by which his Social Security income in January exceeds his
Social Security income in November ($5) and add that to his income
in November to determine the SSI benefit amount for January.
* * * * *
Subpart K--Income
3. The authority citation for part 416, subpart K continues to read
as follows:
Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621,
and 1631 of the Social Security Act; 42 U.S.C. 1302, 1381a, 1382,
1382a, 1382b, 1382c(f), 1382j, and 1383; sec 211 of Pub. L. 93-66,
87 Stat. 154.
4. Section 416.1130 is amended by revising paragraph (a) to read as
follows:
In-Kind Support and Maintenance
Sec. 416.1130 Introduction.
(a) General. Both earned income and unearned income include items
received in kind (Sec. 416.1102). Generally, we value in-kind items at
their current market value and we apply the various exclusions for both
earned and unearned income. However, we have special rules for valuing
food, clothing, or shelter that is received as unearned income (in-kind
support and maintenance). This section and the ones that follow discuss
these rules. In these sections (Secs. 416.1130 through 416.1148) we use
the in-kind support and maintenance you receive in the month as
described in Sec. 416.420 to determine your SSI benefit. We value the
in-kind support and maintenance using the Federal benefit rate for the
month in which you receive it. Exception: For the first 2 months for
which a cost-of-living adjustment applies, we value in-kind support and
maintenance you receive using the VTR or PMV based on the Federal
benefit rate as increased by the cost-of-living adjustment.
Example: Mr. Jones receives an SSI benefit which is computed by
subtracting one-third from the Federal benefit rate. This one-third
represents the value of the income he receives because he lives in
the household of a son who provides both food and shelter (in-kind
support and maintenance). In January, we increase his SSI benefit
because of a cost-of-living adjustment. We base his SSI payment for
that month on the food and shelter he received from his son two
months earlier in November. In determining the value of that food
and shelter he received in November, we use the Federal benefit rate
for January.
* * * * *
[FR Doc. 95-19502 Filed 8-8-95; 8:45 am]
BILLING CODE 4190-29-P
