[Federal Register Volume 62, Number 171 (Thursday, September 4, 1997)]
[Proposed Rules]
[Pages 46682-46686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23506]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 171 / Thursday, September 4, 1997 /
Proposed Rules
[[Page 46682]]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 404
[Regulations No. 4]
RIN 0960-AE35
Reduction of Disability Benefits--Workers' Compensation and
Public Disability Benefits and Payments
AGENCY: Social Security Administration (SSA).
ACTION: Proposed rule.
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SUMMARY: We propose to revise our rules on reduction of Social Security
benefits based on disability on account of receipt of workers'
compensation and/or public disability benefits and payments provided
under Federal (other than Social Security), State, or local laws or
plans to clarify our existing policies. We also propose to adopt a
uniform method for proration of workers' compensation and public
disability benefit/payment settlements. In addition, we propose to
incorporate into our rules certain policy interpretations established
previously in relevant Social Security Rulings (SSRs). Finally, we
propose to update provisions that have not been changed since 1984.
DATES: To be sure that your comments are considered, we must receive
them no later than November 3, 1997.
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 21235-0001, between 8:00 a.m. and 4:30 p.m. on regular
business days. Comments may be inspected during these same hours by
making arrangements with the contact person shown below.
FOR FURTHER INFORMATION CONTACT: Daniel T. Bridgewater, Legal
Assistant, Division of Regulations and Rulings, Social Security
Administration, 6401 Security Boulevard, Baltimore, MD 21235, (410)
965-3298 for information about these rules.
SUPPLEMENTARY INFORMATION:
Background
Certain disabled workers may be eligible for cash benefits under
both workers' compensation and/or other public disability benefit
programs and the Social Security disability insurance (SSDI) program.
Section 224 of the Social Security Act (the Act) provides for a
reduction in SSDI benefits so that total benefits under both workers'
compensation and/or other public disability benefit programs and SSDI
do not exceed the higher of 80 percent of a worker's predisability
earnings (``average current earnings'') or the total family benefit
(i.e., the sum of the individual's Social Security disability benefits
and the Social Security benefits payable to others based upon his work
record) under Social Security before reduction.
Present Policy
The policy interpreted in SSRs over the years has focused mainly on
certain aspects of the law. First, some State workers' compensation
laws prescribe specific benefit amounts for certain permanent
impairments (e.g., loss of a bodily member) without regard to actual
loss of wages. Some beneficiaries questioned whether Congress intended
to exclude such benefits based on permanent impairments from the SSDI
benefit reduction. This issue was resolved in the courts, and SSA
developed two SSRs to reflect its policy that permanent impairment
benefits, compensable under State workers' compensation laws, are
subject to offset against SSDI benefits. (SSR 74-21c, based on Grant v.
Weinberger, 482 F.2d 1290 (6th Cir. 1973), and SSR 92-6c, based on
Davidson v. Sullivan, 942 F.2d 90 (1st Cir. 1991)). More recent cases,
Krysztoforski v. Chater, 55 F.3d 857 (3rd Cir. 1995) and Hodge v.
Shalala, 27 F.3d 430 (9th Cir. 1994), also uphold SSA's policy in this
regard. We now propose to amend our regulatory language to reflect this
policy interpretation.
Second, some have questioned our policy that non-covered earnings
(i.e., those earnings from employment not covered under the Act) cannot
be used in determining the ``average current earnings'' for an
individual. This policy, which is described in SSR 92-2a, is based on
section 224(a) of the Act, which provides that ``average current
earnings'' are to be computed by reference to the average monthly wage
under section 215(b) of the Act and to wage and self-employment income
totals under sections 209(a)(1) and 211(b)(1) of the Act. These
statutory sections are concerned strictly with wages and self-
employment income covered under the Act, and, thus, we cannot count
non-covered earnings.
Judicial precedent strongly supports the Social Security
Administration's (SSA) position: Prather v. Shalala, 844 F. Supp. 239
(D. Md. 1993), aff'd w/o opinion, 14 F.3d 595 (4th Cir. 1994); Smith v.
Sullivan, 982 F.2d 308 (8th Cir. 1992); Sousa v. Shalala, No. C-92-2796
MHP (N.D. Cal. Jan. 19, 1995); Everette v. Chater, No. 92-C-714 (E.D.
Wis. Aug. 8, 1995). Accordingly, we propose to clarify the regulatory
language to express this policy in a more direct manner.
Proposed Policy--Proration of Lump-Sum Awards
In many cases, an individual may receive some or all of his or her
workers' compensation in a lump-sum. Because a lump-sum award is a
substitute for periodic payments, the Act requires that we look to
State law to see what rate would have been paid had the workers'
compensation payment been made on a periodic basis, and that we prorate
and offset at the rate that most closely approximates State law.
State workers' compensation laws clearly define how to compute the
periodic rate. States base the weekly rate on a specified percentage of
the worker's average weekly wage subject to a maximum amount set by
law. Forty-two States use sixty-six and two-thirds percent.
SSA has been using three methods to establish the rate of offset.
In order of priority, they are as follows:
1. The rate specified in the award. (If the award specifies a rate
based on life expectancy, we use that rate and list the case for future
reference.)
2. The periodic rate paid prior to the lump-sum award (if no rate
was specified in the award).
3. The State's workers' compensation maximum weekly rate in effect
at the time of the injury (if no rate was
[[Page 46683]]
specified in the award and if no periodic payments were made).
For years, lump-sum awards were rare, and they were prorated using
method 1 or 2. Method 3 was added later.
Our experience in determining rates has been that, in almost every
case, because of the worker's actual earnings, the specified percentage
of the average weekly wage would have exceeded the State's maximum
rate. Thus, the worker would have received the State's maximum periodic
rate. Likewise, the prior periodic rate would have been paid at the
maximum rate.
Although we believed that this policy would closely approximate the
monthly rate that would have been paid in the absence of a lump-sum
settlement, we have witnessed an ever-increasing number of cases
nationwide where attorneys are requesting insurers to specify an
artificially low rate in the lump-sum award. For example, some awards
purport to set a proration rate based on the worker's life expectancy.
This rate, often lower than the State's minimum rate, results in little
or no offset under our present method of proration.
We do not believe that the use of a life expectancy rate in the
lump sum award is a bona fide representation of the periodic rate that
would have otherwise been paid. We do not believe that disabled workers
would, in fact, accept such low rates if the lump-sum award were paid
periodically. Also, we do not believe that these low rates are
specified when SSA disability benefits and offset are not an issue.
Life expectancy can be based on subjective factors, such as health,
life style, age, job, etc. Given the fact that these workers are
disabled, it does not appear to be reasonable to utilize life
expectancies to age 75 or older as these awards specify.
We conducted a survey in States where this practice started. One of
the questions we asked of the States was whether a low rate based on
life expectancy was a bona fide representation of the lump-sum award
and in accordance with State law. Six of the eight States said, ``No.''
(One State said the question did not apply and one did not return the
survey.)
It is clear that while State law may not provide life expectancy as
the basis for a lump-sum award or as the basis for periodic benefits
that the lump-sum represents, the actual awards do contain such
language. Once a lump-sum award has been agreed upon, it is of no
consequence to the insurer how the award is portrayed (i.e., whether
the proration rate of the lump-sum award is based on the worker's life
expectancy or the State's maximum weekly rate).
When our order of priority for setting the rate of offset was
established, lump-sum awards were quite straightforward, even rare.
Currently, lump-sum awards are being structured individually in order
to best circumvent the offset required by section 224 of the Act.
Attorneys have even called SSA personnel to seek guidance in
structuring lump-sums to avoid offset.
In short, our policy on the proration of lump-sum awards has become
a tool by which people avoid the offsets intended by Congress, rather
than a means of approximating, as nearly as practicable, the offset
that would have occurred had benefits been paid periodically. It thus
can be viewed as no longer satisfying the requirements of section
224(b) of the Act.
In order to prorate and offset a lump-sum award using a rate that
is more representative of the periodic rate that would have otherwise
been paid under State law and in order to ensure a more uniform policy
for all lump-sum cases nationwide, we propose a change in the order of
priority for determining the weekly rate used. Specifically, we propose
that lump-sum awards be prorated based on:
1. The rate specified in the award; but only if that rate is based
on the percentage of the worker's average weekly wage required by State
law;
2. The periodic rate paid prior to the lump-sum award (if method 1
does not apply); or
3. The State's maximum weekly rate in effect at the time of the
injury (if methods 1 and 2 do not apply).
We believe this proposed change is needed to better implement
section 224 of the Act more effectively.
Proposed Policy--Exclusion of Legal and Medical Expenses
Our present policy is that when workers incur legal, medical, and
related expenses in connection with the claim for workers' compensation
payments or related injury, those expenses are excluded from the lump-
sum award for purposes of the offset computation to the extent
consonant with applicable law. Any deductions from the workers'
compensation payment such as tax withholdings, life insurance, medical
premiums, etc., are included in the amount used in the offset
computations, as are amounts garnished or attached to satisfy legal
obligations.
There are three methods which we use in prorating a lump-sum award
with excludable expenses:
Method A--Delays imposition of offset because it allows SSA to take
the excludable expenses from the beginning of the proration. This is
advantageous to the worker who is approaching age 62 or 65 years of age
or when a closed period of disability is involved.
Method B--Divides the lump-sum award, minus the expenses by the
total lump-sum award. This percentage is then multiplied by the weekly
rate, resulting in a reduced weekly rate. This method reduces the
weekly workers' compensation rate so the offset amount is lowered
during the entire proration period.
Method C--Reduces the lump-sum award by the amount of the
excludable expenses prior to the proration. This method removes offset
at the earliest possible time and could even end the proration prior to
the first possible month of offset.
Until 1971, only Method C was used. Since then, we have used the
method most advantageous to the claimant, unless the lump-sum award
specifies the manner in which expenses are to be deducted.
We propose to return to our pre-1971 policy for prorating a lump-
sum award with excludable expenses. Using only Method C would provide
uniformity and consistency for all claimants. Since the Act and the
regulations do not require a specific method of proration, we believe
Methods A and B can be discontinued.
Lastly, the meaning of the term ``related'' expenses has caused
unnecessary confusion. We have received several questions as to whether
items such as new homes, patios, ramps, costs of vans and vacations,
moving expenses to a milder climate, etc., may be ``related'' expenses.
Because we are aware of no expenses, other than medical or legal
expenses, that should be excluded from offset, we propose to remove the
category of ``related'' expenses and offset only medical and legal
expenses.
Miscellaneous Proposed Changes
We propose to change the language in section 404.408(a)(1)
regarding the application of the offset to certain individuals who
first became entitled to SSDI after 1965 but before September 1981
based on a period of disability that began after June 1, 1965, and
before March 1981. We wish to delete the word, ``first,'' as it is not
required by the law. Also, we wish to delete the dates ``September
1981'' and ``March 1981'' to remove an anomaly that affects claims with
a month of entitlement of September 1981 or later with disability
onsets prior to March 1981.
[[Page 46684]]
Example: A claim is filed September 1982 establishing a
disability onset date of January 10, 1980. The month of entitlement
is determined to be September 1981. This example would not be
covered by the current regulatory language.
We also propose to change the language in section 404.408(a)(1)(i)
and elsewhere to refer to ``benefits or payments'' under a workers'
compensation law or plan, rather than simply ``benefits,'' as many
attorneys have claimed that certain workers' compensation is not a
``benefit'' but is in fact a ``payment.''
We propose to change the language in section 404.408(a)(2)(i)
regarding individuals entitled to SSDI who also are concurrently
entitled to certain other payments based on disability. We believe
``concurrently'' is redundant.
In addition, we propose to make revisions throughout Sec. 404.408
to add the language ``workers' compensation,'' where appropriate, to
current references to ``public disability benefits'' because ``workers'
compensation'' is the designation given for the majority of public
disability benefits other than SSDI or Supplemental Security Income
benefits. Using this language makes explicit that section 404.408
applies to ``workers' compensation'' laws.
Finally, in Sec. 404.408 (h), (i), (j), (k), and (l), we propose to
remove outdated, unnecessary computation examples, leaving one basic
example in paragraph (h) of this section. We believe that the removal
of outdated, unnecessary examples will clarify this rule.
Electronic Version
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.
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 criteria for a
significant regulatory action under Executive Order 12866. Thus, they
are not subject to OMB review.
Regulatory Flexibility Act
We certify that these proposed rules will not have a significant
economic impact on a substantial number of small entities since these
rules affect only individuals. Therefore, a regulatory flexibility
analysis as provided in Public Law 96-354, the Regulatory Flexibility
Act, is not required.
Paperwork Reduction Act
These proposed rules impose no additional reporting or
recordkeeping requirements necessitating clearance by OMB.
(Catalog of Federal Domestic Assistance Program No. 96.001 Social
Security--Disability 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: August 26, 1997.
John J. Callahan,
Acting Commissioner of Social Security.
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
For the reasons set out in the preamble, subpart E of part 404 of
chapter III of title 20 of the Code of Federal Regulations is amended
as follows:
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 404.408 is amended by removing Example 2 from paragraph
(h)(2) and by removing the examples from paragraphs (i), (j), (k), and
(l)(3) and by revising the section heading and the headings and texts
of the following paragraphs: (a)(1) introductory text, (a)(1)(i),
(a)(1)(ii), (a)(2)(i), (b)(1), (b)(2)(ii), (c)(1) introductory text,
(c)(1)(i), (c)(3), (c)(5), (d)--introductory text, (d)(1), (d)(2), (e),
(f), (g), (h)(2)--Example 1, (j), (k), (l)(1), and (l)(2)(i). They read
as follows:
Sec. 404.408 Reduction of benefits based on disability on account of
receipt of certain other disability benefits or payments provided under
Federal, State, or local laws or plans.
(a) * * *
(1) The individual became entitled to disability insurance benefits
after 1965 based on a period of disability that began after June 1,
1965 (but see paragraph (a)(2) of this section), and
(i) The individual entitled to the disability insurance benefit is
also entitled to periodic benefits or payments under a workers'
compensation law or plan of the United States or a State for that month
for an injury or illness, and
(ii) The Commissioner has, in a month before that month, received a
notice of the entitlement, and
* * * * *
(2) * * *
(i) The individual entitled to the disability insurance benefit is
also, for that month, entitled to a periodic benefit (including
workers' compensation or any other payments) on account of a total or
partial disability (whether or not permanent) under a law or plan of
the United States, a State, a political subdivision, or an
instrumentality of two or more of these entities, and
* * * * *
(b) When reduction not made. (1) The reduction of a benefit
otherwise required by paragraph (a)(1) of this section is not made if
the workers' compensation law or plan under which the periodic benefit
or payment is payable provides for the reduction of such periodic
benefit or payment when anyone is entitled to a benefit under title II
of the Act on the basis of the earnings record of an individual
entitled to a disability insurance benefit under section 223 of the
Act.
(2) * * *
(ii) The benefit or payment is a Veterans' Administration benefit,
a public disability benefit (except workers' compensation) payable to
an employee based on employment covered under Social Security, a
benefit based on need, or a wholly private pension or private insurance
benefit.
(c) Amount of reduction--(1) General. The total of benefits for a
month under sections 223 and 202 of the Act to which paragraph (a) of
this section applies is reduced monthly (but not below zero) by the
amount by which the sum of the monthly disability insurance benefits
payable on the disabled individual's earnings record and benefits or
payments under a workers' compensation law or plan payable for that
month exceeds the higher of:
(i) Eighty percent of the individual's average current earnings, as
defined in paragraph (c)(3) of this section; or
* * * * *
(3) Average current earnings defined.
(i) Beginning January 1, 1979, for purposes of this section, an
individual's average current earnings is the largest amount computed
under either paragraph (c)(3)(i)(A), (B), or (C) of this section (after
reducing the amount to the next lower multiple of $1 when the amount is
not a multiple of $1):
(A) The average monthly wage (determined under section 215(b) of
the Act as in effect prior to January 1979) used for purposes of
computing the individual's disability insurance benefit under section
223 of the Act;
[[Page 46685]]
(B) One-sixtieth of the total of the individual's wages and
earnings from self-employment covered under the Act, without the
limitations under sections 209(a) and 211(b)(1) of the Act (see
paragraph (c)(3)(ii) of this section), for the 5 consecutive calendar
years after 1950 for which the wages and earnings from self-employment
covered under the Act (see subpart K of this part) were highest; or
(C) One-twelfth of the total of the individual's wages and earnings
from self-employment covered under the Act, without the limitations
under sections 209(a) and 211(b)(1) of the Act (see paragraph
(c)(3)(ii) of this section), for the calendar year in which the
individual had the highest wages and earnings from self-employment
during the period consisting of the calendar year in which the
individual became disabled and the 5 years immediately preceding that
year.
(ii) Method of determining calendar year earnings in excess of the
limitations under sections 209(a) and 211(b)(1) of the Act. For the
purposes of paragraph (c)(3)(i) of this section, the extent by which
the wages or earnings from self-employment of an individual exceed the
maximum amount of earnings creditable under sections 209(a) and
211(b)(1) of the Act in any calendar year after 1950 and before 1978
will ordinarily be estimated on the basis of the earnings information
available in the records of the Social Security Administration. (See
subpart I of this part.) If an individual provides satisfactory
evidence of the actual earnings in any year, the extent, if any, by
which the earnings exceed the limitations under sections 209(a) and
211(b)(1) of the Act shall be determined by the use of such evidence
instead of by the use of estimates.
* * * * *
(5) Computing disability insurance benefits. When reduction is
required, the total monthly Social Security disability insurance
benefits payable after reduction can be more easily computed by
subtracting the monthly amount of the other workers' compensation/
public disability benefits or payments from the higher of paragraph
(c)(1)(i) or (ii) of this section. This is the method employed in the
example used in this section.
(d) Items not counted for reduction. Amounts paid or incurred and/
or a reasonable estimate of amounts to be incurred, by the individual
for medical and/or legal expenses in connection with the claim for
workers' compensation/public disability benefits or payments (see
Sec. 404.408 (a) and (b)) or the injury or occupational disease on
which the workers' compensation/public disability award or settlement
agreement is based, are excluded in computing the reduction under
paragraph (a) of this section to the extent they are consonant with the
applicable Federal, State, or local law or plan. The reduction must
reflect either the actual amount of expenses already paid or incurred
and/or a reasonable estimate of amounts to be incurred, given the
circumstances in the individual's case, of future medical and/or legal
expenses. The total of such expenses will be subtracted from the total
of a settlement agreement prior to the proration of the reduction. Any
expenses not established by evidence required by the Commissioner or
not reflecting a reasonable estimate of the individual's actual future
expenses will not be excluded. These medical and/or legal expenses may
be evidenced by the workers' compensation/public disability award,
compromise agreement, a court order, or by other evidence as the
Commissioner may require. This other evidence may consist of:
(1) A detailed statement by the individual's physician or the
employer's insurance carrier; or
(2) Bills, receipts, or canceled checks; or
* * * * *
(e) Certification by individual concerning eligibility for workers'
compensation/public disability benefits or payments. Where it appears
that an individual may be eligible for a workers' compensation/public
disability benefit or payment which would give rise to a reduction
under paragraph (a) of this section, the individual may be required, as
a condition of certification for payment of any benefit under section
223 of the Act to any individual for any month, and of any benefit
under section 202 of the Act for any month based on such individual's
earnings record, to furnish evidence as requested by the Commissioner
and to certify as to:
(1) Whether he or she has filed or intends to file any claim for a
workers' compensation/public disability benefit or payment; and
(2) If he or she has so filed, whether there has been a decision on
the claim. The Commissioner may rely, in the absence of evidence to the
contrary, upon a certification that he or she has not filed and does
not intend to file such a claim, or that he or she has filed and no
decision has been made, in certifying any benefit for payment pursuant
to section 205(i) of the Act.
(f) Verification of eligibility or entitlement to a workers'
compensation/public disability benefit or payment under paragraph (a).
Section 224 of the Act requires the head of any Federal agency to
furnish the Commissioner information from the Federal agency's records
that is needed to determine the reduction amount, if any, or verify
other information to carry out the provisions of this section. The
Commissioner is authorized to enter into agreements with States,
political subdivisions, and other organizations that administer a law
or plan of workers' compensation/public disability benefits in order to
obtain information that may be required to carry out the provisions of
this section.
(g) Workers' compensation/public disability benefit or payment
payable on other than a monthly basis. (1) Where workers' compensation/
public disability benefits or payments are paid periodically but not
monthly, or are paid in a lump-sum as a commutation of or a substitute
for periodic benefits or payments, the reduction under this section is
made at the time or times and in the amounts that the Commissioner
determines will approximate, as nearly as practicable the reduction
required under paragraph (a) of this section.
(2) The rate at which to prorate the benefits or payments is the
rate in the award if that rate is based on the percentage of the
worker's average weekly wage required by Federal or State law.
Otherwise, the rate to be used is the prior periodic rate or the
State's maximum weekly rate in effect at the time of the injury.
(3) All lump-sum awards, whether for total or partial disability,
for temporary or permanent disability, or for scheduled or unscheduled
disabilities, including loss of body function, will be offset against
Social Security disability insurance benefits as provided in paragraph
(a) of this section.
(h) * * *
(2) * * *
Example: Effective September 1995, Harold is entitled to a
monthly disability primary insurance amount of $507.90 and a monthly
public disability benefit of $410.00 from the State. Eighty percent
of Harold's average current earnings is $800.00. Because this amount
($800.00) is higher than Harold's disability insurance benefit
($507.90), we subtract Harold's monthly public disability benefit
($410.00) from eighty percent of his average current earnings
($800.00). This leaves Harold a reduced monthly disability benefit
of $390.00.
(j) Effect of social security disability insurance benefit or
payment increases. Any increase in benefits due to a recomputation or a
statutory increase in benefit rates is not subject to the reduction for
workers' compensation/public disability benefits or payments
[[Page 46686]]
under paragraph (a) of this section and does not change the amount to
be deducted from the family benefit or payment. The increase is simply
added to what amount, if any, is payable. If a new beneficiary becomes
entitled to monthly benefits on the same earnings record after the
increase, the amount of the reduction is redistributed among the new
beneficiaries entitled under section 202 of the Act and deducted from
their current benefit rate.
(k) Effect of changes in the amount of the workers' compensation/
public disability benefit or payment. Any change in the amount of the
workers' compensation/public disability benefit or payment received
will result in a recalculation of the reduction under paragraph (a) of
this section and, potentially, an adjustment in the amount of such
reduction. For those individuals described in paragraph (a)(1) of this
section who do not meet the conditions specified in paragraph (a)(2) of
this section, any increased reduction will be imposed effective with
the month after the month the Commissioner received notice of the
increase in the workers' compensation benefit or payment (it should be
noted that only workers' compensation can cause this reduction).
Adjustments due to a decrease in the amount of the workers'
compensation/public disability benefit or payment will be effective
with the actual date the decreased amount was effective. For
individuals described in paragraph (a)(2) of this section, any increase
or decrease in the reduction will be imposed effective with the actual
date of entitlement to the new amount of the workers' compensation/
public disability benefit or payment.
(l) Redetermination of benefits--(1) General. In the second
calendar year after the year in which reduction under this section in
the total of an individual's benefits under section 223 of the Act and
any benefits under section 202 of the Act based on his or her wages and
self-employment income was first required (in a continuous period of
months), and in each third year thereafter, the amount of those
benefits which are still subject to reduction under this section are
redetermined. The redetermination will be made unless it results in any
decrease in the total amount of benefits payable under title II of the
Act on the basis of the workers' wages and self-employment income. The
redetermined benefit is effective with the January following the year
in which the redetermination is made.
(2) * * *
(i) The ratio of the average of the total wages (as defined in
Sec. 404.1048(c)) of all persons for whom wages were reported to the
Secretary of the Treasury or his delegate for the calendar year before
the year in which the redetermination is made, to the average of the
total wages of all persons reported to the Secretary of the Treasury or
his delegate for calendar year 1977 or, if later, the calendar year
before the year in which the reduction was first computed (but not
counting any reduction made in benefits for a previous period of
disability); and
* * * * *
[FR Doc. 97-23506 Filed 9-3-97; 8:45 am]
BILLING CODE 4190-29-P
