[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67203-67207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32134]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
[Regulations No. 16]
RIN 0960-AE59
Supplemental Security Income for the Aged, Blind, and Disabled;
Dedicated Accounts and Installment Payments for Certain Past-Due SSI
Benefits
AGENCY: Social Security Administration.
ACTION: Interim final rule with request for comments.
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SUMMARY: These regulations reflect and implement amendments to the
Social Security Act (the Act) made by sections 213 and 221 of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996. Section 213 requires the establishment of accounts in financial
institutions for the payment of past-due SSI benefits exceeding 6
months' benefits to representative payees on behalf of children under
age 18. These accounts will be dedicated for certain purposes by
restrictions on the use of such past-due benefits. Section 221 requires
past-due SSI benefits which equal or exceed 12 months' benefits to be
paid in installments, with certain exceptions.
DATES: These interim final rules are effective on December 20, 1996. To
be sure that your comments are considered, we must receive them no
later than February 18, 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, between 8:00 a.m. and 4:30 p.m. on regular
business days. Comments received may be inspected during these hours by
making arrangements with the contact person shown below.
FOR FURTHER INFORMATION CONTACT: Regarding this Federal Register
document--Richard M. Bresnick, Legal Assistant, Division of Regulations
and Rulings, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-1758; regarding eligibility or filing
for benefits--our national toll-free number, 1-800-772-1213.
SUPPLEMENTARY INFORMATION: The Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, Public Law (Pub. L.) 104-193,
was enacted on August 22, 1996. Section 213 of Pub. L. 104-193 amended
section 1631(a)(2) of the Act, effective for payments made after August
22, 1996, by adding a new subparagraph (F) to require the
representative payee of an eligible individual under age 18 to
establish ``an account in a financial institution'' (which we will
refer to as a ``dedicated account'') if the individual is eligible for
past-due monthly supplemental security income (SSI) benefits (including
any federally administered State supplementary payments) which (after
any withholding for interim assistance reimbursement (IAR) to States)
exceed six times the Federal Benefit Rate (FBR) plus any federally
administered State supplementation. Once the dedicated account has been
established by the representative payee for the eligible individual,
SSA will direct deposit the past-due benefits into the dedicated
account. Any subsequent past-due benefits payable which exceed six
times the FBR plus any federally administered State supplementation
also must be deposited directly by SSA into the dedicated account.
However, if the eligible individual receives subsequent past-due
benefits which are less than or equal to six times the FBR plus any
federally administered State supplementation, these past-due benefits
may be, but are not required to be, deposited into the dedicated
account by the representative payee. Other funds representing an SSI
underpayment which are equal to or greater than the Federal Benefit
Rate also may be deposited into such an account.
Section 213 provides that funds in the dedicated account are to be
used only for certain specified purposes, primarily those related to
the child's impairment(s). Under the new statutory provision, the use
of dedicated account funds for unauthorized items or services is
considered a ``misapplication'' of benefits. A representative payee who
knowingly misapplies funds from a dedicated account shall be personally
liable to the Commissioner of Social Security (the Commissioner) in an
amount equal to the amount misapplied. Section 213 also requires SSA to
establish a system to monitor representative payee activity with
respect to dedicated accounts.
Sections 213(b) and 213(c) of Pub. L. 104-193 also amended sections
1613(a) and 1612(b) of the Act, respectively, to provide an exclusion
from resources for funds in a dedicated account established and
maintained in accordance with section 1631(a)(2)(F) of the Act,
including accrued interest or other earnings thereon, and to provide an
exclusion from income for such interest and earnings.
Section 221 of Pub. L. 104-193 also affects the payment of large
SSI past-due benefits payable to SSI recipients. This statutory
provision, which is effective for past-due benefits paid on December 1,
1996 or later, amended section 1631(a) of the Act by adding a new
paragraph (10) which requires payment of large past-due benefit amounts
in installments. Prior to this provision, we paid past-due benefits
directly to the eligible individual or the representative payee in a
lump sum payment. Under the new statutory provision, past-due benefits
(including any federally administered State supplementary payments) in
an amount that (after reimbursement for IAR) equals or exceeds 12 times
the FBR plus any federally administered State
[[Page 67204]]
supplementation payable to an eligible individual (or an eligible
individual and eligible spouse), generally must be paid in
installments. Such past-due benefits will be paid in not more than 3
installments, with the first and second installment not exceeding 12
times the FBR plus any State supplementation. The installment payments
will be made at 6-month intervals.
There are two statutory exceptions for which the installment
payment requirements do not apply. They are: (1) when the individual
has a medically determinable impairment which is expected to result in
death within 12 months; or (2) when an individual is ineligible for
benefits and it is determined he or she is likely to remain ineligible
for the next 12 months.
Section 221 also provides an exception to the limitation on the
amount of the first and/or second installment payments when the
individual has certain outstanding debts or current or anticipated
expenses. The exception applies when there are: (1) outstanding debts
due to food, clothing, shelter, or medically necessary services,
supplies or equipment, or medicine; or (2) current or anticipated
expenses in the near future due to the purchase of a home, or medically
necessary services, supplies or equipment, or medicine.
The standard limitation on the first and second installment
payments may be increased by the amount of the debts or expenses
described above. This increase only applies with respect to debts or
expenses that are not subject to reimbursement by a public assistance
program, the Secretary of Health and Human Services under title XVIII
of the Act, a State plan approved under title XIX of the Act, or any
private entity that is legally liable to make payment according to an
insurance policy, prepaid plan, or other arrangement.
Explanation of Revisions
We are amending existing regulations at Secs. 416.535, 416.538,
416.542, 416.570, 416.640, 416.1124, and 416.1210 and adding new
Secs. 416.545, 416.546, and 416.1247.
We are amending Sec. 416.535 to refer to Secs. 416.545 and 416.546,
respectively, on the payment in installments of past-due benefits and
the use of dedicated accounts for the deposit of past-due benefits,
that exceed amounts determined under statutorily prescribed formulas.
We are amending Sec. 416.538 to explain that a dedicated account
must be established for the deposit of past-due benefits for
individuals under age 18 who have representative payees if the amount
of the past-due benefits meets the formula in Sec. 416.546.
We are amending Sec. 416.542 to refer to Sec. 416.545 on
installment payments for large past-due benefits and adding a paragraph
to discuss how we will pay past-due benefits when a dedicated account
is required to be established.
We are adding a new Sec. 416.545 which explains that when an
eligible individual is due past-due benefits which (after reimbursement
for IAR) equal or exceed 12 times the FBR plus any federally
administered State supplementation, the payments generally are required
to be made in installments. This section also explains the exceptions
to the installment payment requirements for certain individuals. This
section also discusses when the amount of the installment payment may
be increased due to certain outstanding debts or current or anticipated
expenses.
We also are adding a new Sec. 416.546 which explains that when an
individual under age 18 who has a representative payee is eligible for
the payment of past-due benefits in an amount (after reimbursement for
IAR) that exceeds six times the FBR plus any federally administered
State supplementation, these past-due benefits must be deposited into a
dedicated account. The new section also reflects that certain
subsequent past-due benefits and underpayments may be, but do not have
to be, deposited into the dedicated account.
We are adding a statement to the end of Sec. 416.570 that funds in
a dedicated account cannot be used to repay an overpayment under title
II or title XVI of the Act. This prohibition is based on the fact that
overpayment repayment is not among the allowable uses of dedicated
account funds listed in Sec. 416.640(e), as it is not related to the
individual's impairment.
We are adding a paragraph to Sec. 416.640 explaining when
representative payees are required to establish a dedicated account in
a financial institution into which certain past-due payments must be
deposited as described in Sec. 416.546. We also describe the types of
dedicated accounts the representative payee may establish and how they
are to be established. The allowable types of accounts are intended to
alleviate the risk of loss of principal, ensure accessibility, and
ensure representative payee accountability.
We also explain in Sec. 416.640 that funds in these accounts are to
be used only for certain specified items or services, primarily those
related to the individual's impairment. Limitations on expenditures
continue until all funds in the account are depleted or SSI eligibility
terminates. If a representative payee knowingly uses funds in the
account for unauthorized expenditures, the representative payee will be
liable to the Commissioner to repay the amount misapplied. We also
state that this amount is not an ``overpayment'' as defined in
Sec. 416.537. We also explain that the recordkeeping requirements in
Secs. 416.635 and 416.665 apply to these accounts.
Based upon the report to Congress of the National Commission on
Childhood Disability, issued October 10, 1995, we deemed it best that
our regulations not attempt to provide specific guidelines for what
items or services would be appropriate as ``impairment-related.'' The
report noted the testimony of advocates for disabled children as to the
vast array of possible impairment-related items and services.
Accordingly, the appropriateness of an expenditure will be decided on a
case-by-case basis within the context of each child's needs and
impairment(s). Therefore, in this section, we have provided broad
guidelines in this area.
We are revising Sec. 416.1124 by adding interest or other earnings
on a dedicated account which is excluded from resources to the list of
unearned income exclusions in paragraph (c).
We are revising Sec. 416.1210 by adding dedicated accounts to the
list of excluded resources.
We are adding a new Sec. 416.1247 explaining the exclusion from
resources of dedicated accounts and interest or other earnings on the
account.
Under these interim final rules, the dedicated account must be kept
separate from all other resources in order for the income and resource
exclusions to apply. No commingling of other funds in the account will
be permitted. Not only does commingling appear to be precluded by the
specified mandatory and discretionary deposits that must or may be made
into a dedicated account, but to permit commingling of other funds into
the dedicated account would impose unduly burdensome reporting and
recordkeeping requirements on representative payees. In addition, such
commingling would impose administratively time-consuming and complex
monthly proration computations on the part of SSA related to interest
and other earnings on the account. Prior administrative experience with
allowing commingling in excluded burial fund accounts led us to
prohibit commingling in such accounts based on this administrative
burden (see Sec. 416.1231(b) and 55 FR 28373 (July 11, 1990)).
[[Page 67205]]
We also explain in Sec. 416.1247 that the income and resource
exclusions continue during a period of suspension or eligibility for
which no payment is due, so long as the individual's eligibility has
not been terminated. Once eligibility terminates, previously excluded
funds may not be excluded if the individual establishes a subsequent
period of eligibility by filing a new application.
Electronic Versions
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
Pursuant to section 702(a)(5) of the Act, 42 U.S.C. 902(a)(5), as
amended by section 102 of Pub. L. 103-296, SSA 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 notice and public comment
procedures in this case.
Public Law 104-193 was signed into law on August 22, 1996. Section
213 was made effective on August 23, 1996, and section 221 was made
effective on December 1, 1996. Moreover, sections 215 and 222,
respectively, require the Commissioner to issue regulations as may be
necessary to carry out the amendments made by sections 213 and 221,
respectively, within 3 months after enactment (i.e., by November 22,
1996). Accordingly, to issue these rules to implement sections 213 and
221 as a notice of proposed rulemaking would have delayed issuance of
final rules until well past the statutory effective dates and
regulatory issuance deadline. Issuing these rules as interim final
rules allows us to come as close as possible to the mandated dates.
In light of the immediacy of the effective dates and the
Congressional mandate that we issue regulations needed to carry out
these statutory provisions within 3 months, we believe that, under the
APA, good cause exists for waiver of the prior notice procedures since
issuance of proposed rules would be impracticable. While we are issuing
these rules as interim final regulations, we are interested in
receiving public comments regarding the substance of these interim
rules.
In addition, we 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, these regulations reflect and
implement statutory provisions, one of which is effective on enactment
and one of which is effective December 1, 1996, and for which
publication of implementing regulations is required by November 22,
1996. In order for these regulations to be effective as close as
possible to the mandated dates, we find that it is in the public
interest to make these rules effective upon publication.
Executive Order 12866
These interim final rules reflect and implement the provisions of
sections 213 and 221 of Pub. L. 104-193. The Office of Management and
Budget (OMB) has reviewed these interim final rules and determined that
they meet the criteria for a significant regulatory action under
Executive Order 12866.
The administrative cost of each of the provisions is negligible
(less than $1 million annually). The provisions of section 213 will
have no impact on benefit payments. Under section 221, benefits will be
paid in installments over a period up to a year later than they would
have been paid in a lump sum.
The provisions establishing dedicated accounts are intended to
alleviate the risk of loss of principal, ensure accessibility, and
ensure representative payee accountability. The exclusion from
resources and income permits families to plan for the needs of the
child as authorized in the provisions.
Regulatory Flexibility Act
We certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
primarily affect only the small number of individuals who would receive
past-due SSI benefits that exceed the 6-month or 12-month limitation.
Therefore, a regulatory flexibility analysis as provided in Public Law
96-354, the Regulatory Flexibility Act, is not required.
Paperwork Reduction Act
These interim final rules contain a recordkeeping requirement in
Sec. 416.640(e)(3). We would normally seek approval of this requirement
from OMB under 44 U.S.C. 3507 as amended by section 2 of the Paperwork
Reduction Act of 1995. However, we are not doing so because we already
have clearance of this requirement under OMB Control No. 0960-0068.
(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, Supplemental Security Income
(SSI), Reporting and recordkeeping requirements.
Dated: November 25, 1996.
Shirley S. Chater,
Commissioner of Social Security.
For the reasons set forth in the preamble, part 416, subparts E, F,
K, and L of chapter III of title 20 of the Code of Federal Regulations
are amended as set forth below.
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart E--[Amended]
1. The authority citation for subpart E of part 416 continues to
read as follows:
Authority: Secs. 702(a)(5), 1601, 1602, 1611 (c) and (e), and
1631(a)-(d) and (g) of the Social Security Act (42 U.S.C. 902(a)(5),
1381, 1381a, 1382 (c) and (e), and 1383(a)-(d) and (g)).
2. Section 416.535 is amended by revising the first sentence of
paragraph (a) and adding paragraph (c) to read as follows:
Sec. 416.535 Underpayments and overpayments.
(a) General. When an individual receives SSI benefits of less than
the correct amount, adjustment is effected as described in
Secs. 416.542 and 416.543, and the additional rules in Sec. 416.545 may
apply. * * *
* * * * *
(c) Additional rules for eligible individuals under age 18 who have
a representative payee. When an eligible individual under age 18 has a
representative payee and receives less than the correct amount of SSI
benefits, the additional rules in Sec. 416.546 may apply.
* * * * *
3. Section 416.538 is amended by redesignating paragraph (d) as
paragraph (e) and adding a new paragraph (d) to read as follows:
Sec. 416.538 Amount of underpayment or overpayment.
* * * * *
[[Page 67206]]
(d) Limited delay in payment of underpaid amount to eligible
individual under age 18 who has a representative payee. When the
representative payee of an eligible individual under age 18 is required
to establish a dedicated account pursuant to Secs. 416.546 and
416.640(e), payment of past-due benefits which are otherwise due will
be delayed until the representative payee has established the dedicated
account as described in Sec. 416.640(e). Once the account is
established, SSA will deposit the past-due benefits payable directly to
the account.
* * * * *
4. Section 416.542 is amended by adding a sentence at the end of
paragraph (a)(1) and adding paragraph (a)(3) to read as follows:
Sec. 416.542 Underpayments--to whom underpaid amount is payable.
(a) Underpaid recipient alive--underpayment payable. (1) * * * If
the underpaid amount meets the formula in Sec. 416.545 and one of the
exceptions does not apply, the amount of any past-due benefits will be
paid in installments.
* * * * *
(3) If an underpaid individual under age 18 is alive and has a
representative payee and is due past-due benefits which meet the
formula in Sec. 416.546, SSA will pay the past-due benefits into the
dedicated account described in Sec. 416.640(e). If the underpaid
individual dies before the benefits have been deposited into the
account, we will follow the rules which apply to underpayments for the
payment of any unpaid amount due to any eligible survivor of a deceased
individual as described in paragraph (b) of this section.
* * * * *
5. A new Sec. 416.545 is added to read as follows:
Sec. 416.545 Paying large past-due benefits in installments.
(a) General. Except as described in paragraph (c) of this section,
when an individual is eligible for past-due benefits in an amount which
meets the formula in paragraph (b) of this section, payment of these
benefits must be made in installments. The amounts subject to payment
in installments include:
(1) Benefits due but unpaid which accrued prior to the month
payment was effectuated;
(2) Benefits due but unpaid which accrued during a period of
suspension for which the recipient was subsequently determined to have
been eligible; and
(3) Any adjustment to benefits which results in an accrual of
unpaid benefits.
(b) Installment Formula. Installment payments must be made if the
amount of the past-due benefits including any federally administered
State supplementation, after applying Sec. 416.525, equals or exceeds
12 times the Federal Benefit Rate plus any federally administered State
supplementation payable in a month to an eligible individual (or
eligible individual and eligible spouse). These installment payments
will be paid in not more than 3 installments and made at 6-month
intervals. Except as described in paragraph (d) of this section, the
amount of each of the first and second installment payments may not
exceed the threshold amount of 12 times the maximum monthly benefit
payable as described in this paragraph.
(c) Exception--When installments payments are not required.
Installment payments are not required and the rules in this section do
not apply if, when the determination of an underpayment is made, the
individual is (1) afflicted with a medically determinable impairment
which is expected to result in death within 12 months, or (2)
ineligible for benefits and we determine that he or she is likely to
remain ineligible for the next 12 months.
(d) Exception--Increased first and second installment payments. (1)
The amount of the first and second installment payments may be
increased by the total amount of the following debts and expenses:
(i) Outstanding debt for food, clothing, shelter, or medically
necessary services, supplies or equipment, or medicine; or
(ii) Current or anticipated expenses in the near future for
medically necessary services, supplies or equipment, or medicine, or
for the purchase of a home.
(2) The increase described in paragraph (d)(1) of this section only
applies to debts or expenses that are not subject to reimbursement by a
public assistance program, the Secretary of Health and Human Services
under title XVIII of the Act, a State plan approved under title XIX of
the Act, or any private entity that is legally liable for payment in
accordance with an insurance policy, pre-paid plan, or other
arrangement.
6. A new Sec. 416.546 is added to read as follows:
Sec. 416.546 Payment into dedicated accounts of past-due benefits for
eligible individuals under age 18 who have a representative payee.
For purposes of this section, amounts subject to payment into
dedicated accounts (see Sec. 416.640(e)) include the amounts described
in Sec. 416.545(a) (1), (2), and (3).
(a) For an eligible individual under age 18 who has a
representative payee and who is determined to be eligible for past-due
benefits (including any federally administered State supplementation)
in an amount which (after Sec. 416.525 is applied) exceeds six times
the Federal Benefit Rate plus any federally administered State
supplementation payable in a month, this unpaid amount must be paid
into the dedicated account established and maintained as described in
Sec. 416.640(e).
(b) After the account is established, the representative payee may
(but is not required to) deposit into the account any subsequent past-
due benefits (including any federally administered State
supplementation) which are in an amount less than that specified in
paragraph (a) of this section or any other funds representing an SSI
underpayment which is equal to or exceeds the maximum Federal Benefit
Rate.
(c) If the underpaid individual dies before all the benefits due
have been deposited into the dedicated account, we will follow the
rules which apply to underpayments for the payment of any unpaid amount
due to any eligible survivor as described in Sec. 416.542(b).
7. Section 416.570 is amended by adding a new sentence at the end
of the section to read as follows:
Sec. 416.570 Adjustment--general rule.
* * * No funds properly deposited into a dedicated account (see
Secs. 416.546 and 416.640(e)) can be used to repay an overpayment while
the overpaid individual remains subject to the provisions of those
sections.
Subpart F--[Amended]
8. The authority citation for subpart F of part 416 continues 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)).
9. Section 416.640 is amended by adding paragraph (e) to read as
follows:
Sec. 416.640 Use of benefit payments.
* * * * *
(e) Dedicated accounts for eligible individuals under age 18. (1)
When past-due benefit payments are required to be paid into a separate
dedicated account (see Sec. 416.546), the representative payee is
required to establish in a financial institution an account dedicated
to the purposes described in paragraph (e)(2) of this section. This
dedicated account may be a checking, savings or money market
[[Page 67207]]
account subject to the titling requirements set forth in Sec. 416.645.
Dedicated accounts may not be in the form of certificates of deposit,
mutual funds, stocks, bonds or trusts.
(2) A representative payee shall use dedicated account funds,
whether deposited on a mandatory or permissive basis (as described in
Sec. 416.546), for the benefit of the child and only for the following
allowable expenses--
(i) Medical treatment and education or job skills training;
(ii) If related to the child's impairment(s), personal needs
assistance; special equipment; housing modification; and therapy or
rehabilitation; or
(iii) Other items and services related to the child's impairment(s)
that we determine to be appropriate. The representative payee must
explain why or how the other item or service relates to the
impairment(s) of the child.
(3) Representative payees must keep records and receipts of all
deposits to and expenditures from dedicated accounts, and must submit
these records to us upon our request, as explained in Secs. 416.635 and
416.665.
(4) The use of funds from a dedicated account in any manner not
authorized by this section constitutes a misapplication of benefits.
These misapplied benefits are not an overpayment as defined in
Sec. 416.537; however, if we determine that a representative payee
knowingly misapplied funds in a dedicated account, that representative
payee shall be liable to us in an amount equal to the total amount of
the misapplied funds.
(5) The restrictions described in this section and the income and
resource exclusions described in Secs. 416.1124(c)(20) and 416.1247
shall continue to apply until all funds in the dedicated account are
depleted or eligibility for benefits terminates, whichever comes first.
This continuation of the restrictions and exclusions applies in
situations where funds remain in the account in any of the following
situations--
(i) A child attains age 18, continues to be eligible and receives
payments directly;
(ii) A new representative payee is appointed. When funds remaining
in a dedicated account are returned to us by the former representative
payee, the new representative payee must establish an account in a
financial institution into which we will deposit these funds, even if
the amount is less than that prescribed in Sec. 416.546; or
(iii) During a period of suspension due to ineligibility as
described in Sec. 416.1321, administrative suspension, or a period of
eligibility for which no payment is due.
Subpart K--[Amended]
10. The authority citation for subpart K of part 416 continues to
read as follows:
Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f),
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5),
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211,
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).
11. Section 416.1124 is amended by removing the ``and'' at the end
of paragraph (c)(18) and the period at the end of paragraph (c)(19),
adding ``; and'' at the end of paragraph (c)(19), and adding paragraph
(c)(20) to read as follows:
Sec. 416.1124 Unearned income we do not count.
* * * * *
(c) * * *
(20) Interest or other earnings on a dedicated account which is
excluded from resources. (See Sec. 416.1247).
Subpart L--[Amended]
12. The authority citation for subpart L of part 416 continues to
read as follows:
Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f),
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5),
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211,
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).
13. Section 416.1210 is amended by removing the ``and'' at the end
of paragraph (p) and the period at the end of paragraph (q), adding ``;
and'' at the end of paragraph (q), and adding paragraph (r) to read as
follows:
Sec. 416.1210 Exclusions from resources; general.
* * * * *
(r) Dedicated financial institution accounts as provided in
Sec. 416.1247.
14. A new Sec. 416.1247 is added to read as follows:
Sec. 416.1247 Exclusion of a dedicated account in a financial
institution.
(a) General. In determining the resources of an individual (or
spouse, if any), the funds in a dedicated account in a financial
institution established and maintained in accordance with
Sec. 416.640(e) will be excluded from resources. This exclusion applies
only to benefits which must or may be deposited in such an account, as
specified in Sec. 416.546, and accrued interest or other earnings on
these benefits. If these funds are commingled with any other funds
(other than accumulated earnings or interest) this exclusion will not
apply to any portion of the funds in the dedicated account.
(b) Exclusion during a period of suspension or termination. (1)
Suspension. The exclusion of funds in a dedicated account and interest
and other earnings thereon continues to apply during a period of
suspension due to ineligibility as described in Sec. 416.1321,
administrative suspension, or a period of eligibility for which no
payment is due, so long as the individual's eligibility has not been
terminated as described in Secs. 416.1331 through 416.1335.
(2) Termination. Once an individual's eligibility has been
terminated, any funds previously excluded under paragraph (a) of this
section may not be excluded if the individual establishes a subsequent
period of eligibility by filing a new application.
[FR Doc. 96-32134 Filed 12-19-96; 8:45 am]
BILLING CODE 4190-29-P
