[Federal Register Volume 73, Number 218 (Monday, November 10, 2008)]
[Rules and Regulations]
[Pages 66520-66522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26680]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404 and 416
[Docket No. SSA 2008-0007]
RIN 0960-AG70
Representative Payment Under Titles II, VIII and XVI of the
Social Security Act
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: We are amending our rules governing how we investigate
representative payee applicants. Under these rules, any payee who
previously satisfied the payee investigation criteria, including a
face-to-face interview, and currently serves as a payee generally need
not appear for another face-to-face interview when subsequently
applying to become a payee unless we determine within our discretion,
that a new face-to-face interview is necessary. The payee applicant
would still be required to satisfy the rest of the investigation
process as set forth in the regulations. Reducing the number of
subsequent face-to-face interviews of payee applicants will streamline
our representative payee application process, allowing payee applicants
to become qualified more quickly when they already serve as a payee.
This rule also will expedite payment of benefits in certain
representative payee situations and reduce the burden on our field
office employees by eliminating the necessity of interviewing such
payee applicants.
DATES: This rule will be effective on December 10, 2008.
FOR FURTHER INFORMATION CONTACT: Jerome Albanese, Office of
Regulations, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235-6401, (404) 562-1024, for information about this
notice. For information on eligibility or filing for benefits, call our
national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778, or
visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
Electronic Version
The electronic file of this document is available on the date of
publication in the Federal Register at http://www.gpoaccess.gov/fr/index.html.
Background
We select a representative payee for certain persons eligible for
Social Security benefits under title II of the Social Security Act (the
Act), special veterans benefits (SVB) under title VIII of the Act, or
supplemental security income under title XVI of the Act. See sections
205(j), 807, and 1631(a)(2) of the Act. We select a representative
payee if we believe that payment through a payee rather than direct
payment of benefits is in the interest of that beneficiary. Subpart U
of part 404, subpart F of part 408, and subpart F of part 416 of our
regulations explain the procedures we follow when determining whether
to make representative payment and in selecting a representative payee
under the title II, VIII and XVI programs.
Our current rules at 20 CFR 404.2024 and 416.624 require that,
before selecting an individual or organization to act as a person's
representative payee, we will investigate the payee applicant to
determine the applicant's suitability. Our rule at Sec. 408.624 adopts
these investigatory requirements for SVBs by cross-reference to Sec.
404.2024. See sections 205(j)(2), 807(b), and 1631(a)(2)(B) of the Act.
The Act states that to the extent practicable, an investigation
shall include a face-to-face interview with a payee applicant. See
sections 205(j)(2)(A)(i), 807(b)(1)(A), and 1631(a)(2)(B)(i)(I). Based
on this authority, our current rules at Sec. Sec. 404.2024 and 416.624
indicate that we generally conduct a face-to-face interview with a
payee applicant each time they file to become a payee, regardless of
whether the payee has previously satisfied the investigation criteria
and participated in a face-to-face interview.
The requirement for holding a face-to-face interview may be waived
only if conducting the interview is impracticable and would cause undue
hardship for the payee applicant such as when a payee applicant would
have to travel a great distance to the field office. Our current rules
also indicate that we may decide it is impracticable to require
subsequent face-to-face interviews for organizational payees that are
known by our field office as suitable payees. We base this decision on
the organization's past performance, recent contacts, and the
organization's knowledge of and compliance with our reporting
requirements.
Explanation of Changes
With these final rules, we are eliminating the requirement that we
conduct a face-to-face interview before selecting an individual or
organization to be a representative payee if we have already conducted
a face-to-face interview with that payee and the payee is qualified and
currently acting as a payee. However, we retain discretionary authority
to require a subsequent face-to-face interview of any payee applicant.
We are revising our rules in Sec. Sec. 404.2024(b) and 416.624(b) to
accomplish these changes.
We also have added a new paragraph (c), ``Impracticable,'' to
Sec. Sec. 404.2024 and 416.624. This new paragraph contains the first
three sentences of current Sec. Sec. 404.2024(b) and 416.624(b), with
editorial changes. We are not making substantive changes to this text.
Public Comment
In the notice of proposed rulemaking we published in the Federal
Register at 73 FR 12923 (March 11, 2008), we provided the public a 60-
day period within which to comment on the proposed changes. That
comment period ended on May 12, 2008. We received one comment, from an
individual who opposed the proposed changes.
Comment: The commenter noted that because the representative
payment program removes the beneficiary's right to manage his own
benefit payments, we must act with extreme care when determining the
need for a payee and in selecting the person or organization that would
best serve as a payee. The commenter believed that in order to protect
beneficiary rights, we should require all payee applicants to undergo a
face-to-face interview every time they apply to be a payee.
Accordingly, the commenter asked that we withdraw our proposal to
eliminate such a
[[Page 66521]]
requirement. In the alternative, the commenter suggested that if we
adopt these changes, we should consider reviewing the payee's
activities with regard to other beneficiaries before waiving subsequent
face-to-face interviews.
Response: Although we share the commenter's concern that payees
must manage benefits properly, we do not accept the commenter's
suggestion to withdraw this rule. Under our current rules, there are
nine criteria that must be met before selecting an individual or
organization to act as a representative payee. See Sec. Sec.
404.2024(a) and 416.624(a). Eight of these criteria remain unchanged.
We are changing only our requirement regarding subsequent face-to-face
interviews for payees who previously satisfied all of our criteria,
including a face-to-face interview, and are qualified and currently
acting as payees.
Our rules regarding recovery of misused benefits and potential
civil monetary penalties remain unchanged and will continue to protect
beneficiaries from payee misuse of benefits. As an added protection, we
also retain the discretion to perform a subsequent face-to-face
interview if we believe one is necessary. Our final rules specifically
note that we base the decision concerning the necessity of a subsequent
face-to-face interview on the payee's past performance and the payee's
knowledge of and compliance with our reporting requirements. Because
the final rules provide that we look at the payee's past performance,
they address the commenter's concern that we review the payee's
activities with regard to other beneficiaries prior to waiving a
subsequent face-to-face interview. Additionally, our existing rules at
Sec. Sec. 404.2024(a)(5) and 416.624(a)(5) require that we determine
whether the payee applicant has previously served as a representative
payee and whether any previous appointment as a payee was terminated
for misuse. Thus, we made no changes from the rules we proposed.
Regulatory Procedures
Executive Order 12866, as Amended
The Office of Management and Budget (OMB) determined that the final
rules meet the criteria for a significant regulatory action under
Executive Order 12866, as amended. Thus, OMB reviewed these final
rules.
Regulatory Flexibility Act
We certify that these final rules will not have a significant
economic impact on a substantial number of small entities as they
affect only individuals. Therefore, a regulatory flexibility analysis
as provided in the Regulatory Flexibility Act, as amended, is not
required.
Paperwork Reduction Act
These final rules impose no reporting or recordkeeping requirements
subject to OMB clearance.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social
Security--Disability Insurance; 96.002, Social Security--Retirement
Insurance; 96.004, Social Security--Survivors Insurance; 96.006,
Supplemental Security Income; 96.020, Special Benefits for Certain
World War II Veterans.)
List of Subjects
20 CFR Part 404
Administrative practice and procedure; Blind; Disability benefits;
Old-Age, Survivors, and Disability Insurance; Reporting and
recordkeeping requirements; Social security.
20 CFR Part 416
Administrative practice and procedure; Aged; Blind, Disability
benefits; Public Assistance programs; Reporting and recordkeeping
requirements; Supplemental Security Income (SSI).
Dated: August 18, 2008.
Michael J. Astrue,
Commissioner of Social Security.
0
For the reasons set out in the preamble, we amend subpart U of part 404
and subpart F of part 416 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 U--[Amended]
0
1. The authority citation for subpart U continues to read as follows:
Authority: Secs. 205(a), (j), and (k), and 702(a)(5) of the
Social Security Act (42 U.S.C. 405(a), (j), and (k), and 902(a)(5)).
0
2. Amend Sec. 404.2024 by revising paragraphs (a)(1) and (b) and by
adding new paragraph (c) as follows:
Sec. 404.2024 How do we investigate a representative payee applicant?
* * * * *
(a) * * *
(1) Conduct a face-to-face interview with the payee applicant
unless it is impracticable as explained in paragraph (c) of this
section.
* * * * *
(b) Subsequent face-to-face interviews. After holding a face-to-
face interview with a payee applicant, subsequent face-to-face
interviews are not required if that applicant continues to be qualified
and currently is acting as a payee, unless we determine, within our
discretion, that a new face-to-face interview is necessary. We base
this decision on the payee's past performance and knowledge of and
compliance with our reporting requirements.
(c) Impracticable. We may consider a face-to-face interview
impracticable if it would cause the payee applicant undue hardship. For
example, the payee applicant would have to travel a great distance to
the field office. In this situation, we may conduct the investigation
to determine the payee applicant's suitability to serve as a
representative payee without a face-to-face interview.
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart F--[Amended]
0
1. The authority citation for subpart F 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)).
0
2. Amend Sec. 416.624 by revising paragraphs (a)(1) and (b) and by
adding new paragraph (c) as follows:
Sec. 416.624 How do we investigate a representative payee applicant?
* * * * *
(a) * * *
(1) Conduct a face-to-face interview with the payee applicant
unless it is impracticable as explained in paragraph (c) of this
section.
* * * * *
(b) Subsequent face-to-face interviews. After holding a face-to-
face interview with a payee applicant, subsequent face-to-face
interviews are not required if that applicant continues to be qualified
and currently is acting as a payee, unless we determine, within our
discretion, that a new face-to-face interview is necessary. We base
this decision on the payee's past performance and knowledge of and
compliance with our reporting requirements.
(c) Impracticable. We may consider a face-to-face interview
impracticable if it would cause the payee applicant undue hardship. For
example, the payee applicant would have to travel a great distance to
the field office. In this situation, we may conduct the investigation
to determine the payee applicant's suitability to serve as a
[[Page 66522]]
representative payee without a face-to-face interview.
[FR Doc. E8-26680 Filed 11-7-08; 8:45 am]
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