Changes to the Income and Resources Provisions for Supplemental Security Income (SSI) Based on Sections 430, 435, and 436 of the Social Security Protection Act (SSPA) of 2004, 52949-52952 [05-17588]
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Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Proposed Rules
For the reasons discussed above, I
certify that the proposed regulation:
1. Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
2. Is not a ‘‘significant rule’’ under the
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
3. Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
We prepared a regulatory evaluation
of the estimated costs to comply with
this proposed AD and placed it in the
AD docket. See the ADDRESSES section
for a location to examine the regulatory
evaluation.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Safety.
The Proposed Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA proposes to amend 14 CFR part
39 as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701.
[Amended]
2. The Federal Aviation
Administration (FAA) amends § 39.13
by adding the following new
airworthiness directive (AD):
BILLING CODE 4910–13–P
FOR FURTHER INFORMATION CONTACT:
Barbara E. Snyder, Social Insurance
Specialist, Social Security
Administration, Office of Income
Security Programs, 252 Altmeyer
Building, 6401 Security Boulevard,
Baltimore, MD 21235–6401, (410) 965–
5655 or TTY 1–800–966–5906, 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 https://
www.socialsecurity.gov.
SOCIAL SECURITY ADMINISTRATION
Changes to the Income and Resources
Provisions for Supplemental Security
Income (SSI) Based on Sections 430,
435, and 436 of the Social Security
Protection Act (SSPA) of 2004
ACTION:
Affected ADs
(b) None.
Applicability
(c) This AD applies to all BAE Systems
(Operations) Limited Model Jetstream 4101
airplanes, certificated in any category.
Unsafe Condition
(d) This AD results from a report of total
electrical failure just as the airplane landed.
We are issuing this AD to prevent total
electrical failure and consequent reduced
controllability of the airplane.
Compliance
(e) You are responsible for having the
actions required by this AD performed within
the compliance times specified, unless the
actions have already been done.
Jkt 205001
Electronic Version
Social Security Administration
(SSA).
Comments Due Date
(a) The FAA must receive comments on
this AD action by October 6, 2005.
Rules+Open+To+Comment or the
Federal eRulemaking Portal at https://
www.regulations.gov; by e-mail to
regulations@ssa.gov; by telefax to (410)
966–2830; or by letter to the
Commissioner of Social Security, P.O.
Box 17703, Baltimore, Maryland 21235–
7703. You may also deliver them to the
Office of Regulations, Social Security
Administration, 100 Altmeyer Building,
6401 Security Boulevard, Baltimore,
Maryland 21235–6401, between 8 a.m.
and 4:30 p.m. on regular business days.
Comments are posted on our Internet
site, or you may inspect them on regular
business days by making arrangements
with the contact person shown in this
preamble.
Issued in Renton, Washington, on August
29, 2005.
Kalene C. Yanamura,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 05–17610 Filed 9–2–05; 8:45 am]
AGENCY:
BAE Systems (Operations) Limited
(Formerly British Aerospace Regional
Aircraft): Docket No. FAA–2005–22290;
Directorate Identifier 2005–NM–129–AD.
13:21 Sep 02, 2005
Related Information
(h) British airworthiness directive G–2005–
0006, dated February 7, 2005, also addresses
the subject of this AD.
RIN 0960–AG13
1. The authority citation for part 39
continues to read as follows:
VerDate Aug<18>2005
Alternative Methods of Compliance
(AMOCs)
(g) The Manager, ANM–116, Transport
Airplane Directorate, FAA, has the authority
to approve AMOCs for this AD, if requested
in accordance with the procedures found in
14 CFR 39.19.
20 CFR Part 416
PART 39—AIRWORTHINESS
DIRECTIVES
§ 39.13
Modification
(f) Within 6 months after the effective date
of this AD: Modify the wiring of the startergenerator terminal block in accordance with
the Accomplishment Instructions of BAE
Systems (Operations) Limited Service
Bulletin J41–24–041, dated May 10, 2004.
52949
Notice of proposed rulemaking.
We propose to revise our
regulations on how we determine an
individual’s income and resources
under the SSI program based on the
SSPA of 2004, enacted on March 2,
2004. Some of the provisions of the
SSPA make a number of changes in the
way we determine income and
resources including: how we calculate
infrequent and irregular income; what
interest and dividend income we
exclude; how we count cash military
compensation; and when we exclude
gifts for tuition or educational expenses
from income or resources. We are also
proposing to apply the exclusions
required by the SSPA when determining
the countable income and resources of
an ineligible spouse or ineligible parent.
DATES: To be sure that we consider your
comments, we must receive them by
November 7, 2005.
ADDRESSES: You may give us your
comments: by using our Internet site
facility (i.e., Social Security Online) at
https://policy.ssa.gov/erm/rules.nsf/
SUMMARY:
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The electronic file of this document is
available on the date of publication in
the Federal Register at https://
www.gpoaccess.gov/fr/.
SUPPLEMENTARY INFORMATION:
Background
The basic purpose of the SSI program
(title XVI of the Social Security Act (the
Act)) is to ensure a minimum level of
income to people who are age 65 or
older, or blind or disabled, and who
have limited income and resources.
Section 1611 of the Act provides that
SSI payments can be made only to
people who have income and resources
below specified amounts. Therefore, the
amount of income and resources a
person has is a major factor in deciding
whether the person can receive SSI
benefits and in computing the amount
of the benefits.
Public Law 108–203, the SSPA of
2004, was enacted on March 2, 2004.
Sections 430, 435, and 436 of this law
affect how income and resources are
determined in the SSI program.
Section 430
Section 430 of Public Law 108–203
amended section 1612(b) of the Act as
follows:
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Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Proposed Rules
Change the Calculation of Infrequent
and Irregular Income From a Monthly to
a Quarterly Basis
Prior to the SSPA of 2004, we did not
count up to $10 of your earned income
in a month or $20 of unearned income
in a month if it was infrequent or
irregular; that is, if you received it only
once in a calendar quarter from a single
source or if you could not reasonably
have expected it. If the total amount of
your infrequent or irregular income for
a month exceeded $10 of earned income
or $20 of unearned income, we could
not use this exclusion. Based on section
430 of the SSPA of 2004, we now
exclude the first $30 per calendar
quarter of earned income and the first
$60 per calendar quarter of unearned
income if you receive it infrequently or
irregularly. This provision applies to
benefits payable on or after July 1, 2004.
Consistent with the provision in
section 1612(b)(3) of the Act (as
amended by section 430(a) of the SSPA)
which provides that this exclusion is
‘‘determined in accordance with criteria
prescribed by the Commissioner of
Social Security’’, we are also proposing
to revise the definition of infrequent
income. We propose that we will
consider income to be received
infrequently if you receive it only once
during a calendar quarter from a single
source and you did not receive it in the
month immediately preceding that
month or in the month immediately
subsequent to that month, regardless of
whether or not these payments occur in
different calendar quarters. We consider
income to be received irregularly if you
cannot reasonably expect to receive it.
Exclude From Income All Interest and
Dividend Income Earned on Countable
Resources
Prior to the SSPA of 2004, there was
no specific exclusion for interest and
dividend income you earned on
countable and certain excludable
resources. Based on section 430 of the
SSPA of 2004, we will exclude from
your income determination interest or
dividend income you earn on resources
which are countable under section
1613(a) of the Act. Also, based on
section 430, we will not count interest
or dividend income on resources that
are excluded based on a Federal statute
other than section 1613(a) of the Act.
These amendments apply to benefits
payable on or after July 1, 2004.
Section 435
Prior to the SSPA of 2004, we did not
count as unearned income any portion
of a grant, scholarship, or fellowship
you used to pay tuition, fees, or other
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necessary educational expenses.
However, we did count any portion you
set aside or actually used for food,
clothing, or shelter as income in the
month you received it and, to the extent
any portion of it was retained, as a
resource the month following the month
you received it. Under these proposed
rules, any portion set aside or used for
food, clothing, or shelter will continue
to count as income in the month
received or as a resource if retained.
Section 435 of the SSPA of 2004
amended section 1612(b)(7) of the Act to
provide that we will exclude a gift (or
portion of a gift) you use to pay the cost
of tuition and fees at any educational
(including technical or vocational
education) institution when we
determine your income (and the income
of your eligible spouse). Additionally,
section 435 of the SSPA of 2004
amended section 1613(a) of the Act to
provide that we will exclude from
resources for 9 months after the month
in which it is received, any grant,
scholarship, fellowship, or gift (or
portion of a gift) you use to pay the cost
of tuition and fees at an educational
(including technical or vocational
education) institution. These
amendments apply to benefits payable
on or after June 1, 2004.
We also plan to extend this resource
exclusion to any portion of a grant,
scholarship, or fellowship retained after
the month of receipt. Prior to the SSPA
of 2004, section 1612(b)(7) had excluded
‘‘any portion’’ of a grant, scholarship, or
fellowship from income. When the
resource exclusion was added by the
SSPA, the exclusion covered grants,
scholarships, and fellowships, but only
specifically referenced portions with
respect to gifts. In order to have
consistent policy on exclusions related
to tuition and educational expenses, we
are proposing to exclude from resources
for 9 months any portion of a grant,
scholarship, fellowship, or gift used to
pay necessary educational expenses. In
addition, we are providing in these
proposed rules that any portion of a
grant, scholarship, fellowship, or gift
intended to be used for tuition, fees, or
other necessary educational expenses
that is used for another purpose during
the 9-month resource exclusion period
will be counted as income in the month
it is used for another purpose.
Section 436
Under our current rules, your income
is counted in the month you receive it
rather than in the month you earn it. We
count wages and unearned income at
the earliest of the following points:
• When you receive them,
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• When they are credited to your
account, or
• When they are set aside for your
use.
Members of a uniformed service (as
defined in 20 CFR 404.1330) are paid
twice per month, and receive one Leave
and Earnings Statement (LES) at the
beginning of the month, which reflects
their earnings for services performed in
the prior month. The earnings shown on
the monthly LES consist of the money
actually paid in the second payment
from the previous month and the
payment received at the beginning of
the current month. The payment
received at the beginning of the current
month is actually for services performed
in the last half of the previous month.
Thus, both payments reflected on the
LES represent services performed in the
previous month. Because wages are
counted when paid, the portion of the
money that was paid in the previous
month must be considered as received
in the previous month, not the current
month, and the portion paid at the
beginning of the current month must be
considered in the current month. Prior
to the SSPA of 2004, we had to apply
a complex formula to the information on
the LES for 2 consecutive months to
determine one month’s wages and
unearned income.
Section 436 of the SSPA amended
section 1611(c) of the Act to provide
that remuneration you receive for
services performed as a member of a
uniformed service may be treated as
received in the month in which you
earned it, if the Commissioner of Social
Security (the Commissioner) determines
that this method would promote the
economical and efficient administration
of the SSI program. This method of
counting allows us to count the money
shown on the LES for any month as
received in that month, thereby
eliminating the need to apply a complex
formula to determine monthly earnings.
Instead, we can determine monthly
earnings by simply adding the amounts
shown on the LES issued for that
month.
Extending Exclusions in Section 430,
435, and 436 to the Deeming Process
Section 1614(f) of the Act requires
that, when we determine an individual’s
eligibility for SSI benefits, we must
consider the income and resources of an
ineligible spouse living in the same
household, or, in the case of a child
under the age of 18, the income and
resources of an ineligible parent living
in the same household. We use the term
‘‘deeming’’ to identify this process of
considering part of an ineligible
spouse’s or parent’s income and
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Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Proposed Rules
resources to be the individual’s own
income and resources. Section 1614(f)
also grants the Commissioner the
discretion to waive the deeming of
income and resources from an ineligible
spouse or parent to an eligible
individual when the Commissioner
determines that deeming would be
inequitable under the circumstances.
In addition to adding to our
regulations the changes in how we
determine an eligible individual’s
income and resources required by the
SSPA, we propose to apply these
changes when determining the
countable income and resources of an
ineligible spouse or ineligible parent.
These changes are:
• Change the calculation of
infrequent and irregular income from a
monthly to a quarterly basis, and revise
the definition of infrequent income.
• Exclude from income interest or
dividends earned on countable
resources and resources excluded under
other Federal statutes.
• Exclude from income gifts used to
pay tuition, fees, or other necessary
educational expenses at any educational
institution, including vocational and
technical institutions.
• Exclude from resources gifts used to
pay tuition, fees, or other necessary
educational expenses at an educational
institution (including vocational or
technical institution) for 9 months
beginning the month after the month the
educational assistance was received.
• Consider wages and unearned
income from a uniformed service to be
received in the month in which such
compensation is earned.
Extending these changes to the
deeming process is consistent with the
SSI program’s longstanding treatment of
income and resources of spouses and
parents, as authorized by section 1614(f)
of the Act. This treatment avoids using
assistance programs that benefit spouses
and parents to indirectly support SSI
recipients and provides consistent
treatment of income and resources
throughout the program.
Explanation of Proposed Changes
We propose to make the following
changes to our rules on determining
income and resources under the SSI
program to implement the provisions of
the SSPA:
• We propose to revise
§ 416.1112(c)(2) and § 416.1124(c)(6) to
reflect the provision of section 430 that
changes the calculation of infrequent
and irregular income from a monthly to
a quarterly basis, and to revise the
definition of infrequent income.
• We also propose to add a new
§ 416.1124(c)(22) to reflect the provision
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of section 430 that excludes from
income interest or dividends earned on
countable resources and resources
excluded under other Federal statutes.
• We propose to amend
§ 416.1124(c)(3) to reflect the provision
in section 435 that states that gifts (or
portions of gifts) used to pay tuition and
fees at any educational institution,
including vocational and technical
institutions, are excluded from income.
• Additionally, we propose to add a
new § 416.1210(u) and a new § 416.1250
to reflect the provision in section 435
that excludes from resources any grants,
scholarships, fellowships, or gifts used
to pay tuition and fees at an educational
institution (including vocational or
technical institution) for 9 months
beginning the month after the month the
educational assistance was received.
• We propose to amend § 416.1111(a)
and § 416.1123(a), and add a new
§ 416.1123(f) to reflect section 436 that
states that we may consider wages and
unearned income from a uniformed
service to be received in the month in
which such compensation is earned. We
also propose a technical amendment to
add a cross-reference in § 416.1123(a) to
§ 416.1123(e).
• Finally, we propose to amend
§ 416.1161 by revising paragraph (a)(4)
and adding a new paragraph (a)(26) to
exclude certain interest and dividends
and gifts used to pay educational
expenses from the income of an
ineligible spouse and ineligible parent
for deeming purposes.
Clarity of These Regulations
Executive Order 12866, as amended
by Executive Order 13258, requires each
agency to write all rules in plain
language. In addition to comments you
may have on these proposed rules, we
also invite your comments on how to
make these rules easier to understand.
For example:
• Have we organized the material to
suit your needs?
• Are the requirements in the rules
clearly stated?
• Do the rules contain technical
language or jargon that is unclear?
• Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the rules easier to
understand?
• Would more (but shorter) sections
be better?
• Could we improve clarity by adding
tables, lists, or diagrams?
• What else could we do to make the
rules easier to understand?
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52951
Regulatory Procedures
Executive Order 12866, as Amended by
Executive Order 13258
We have consulted with the Office of
Management and Budget (OMB) and
determined that these proposed rules
meet the criteria for a significant
regulatory action under Executive Order
12866, as amended by Executive Order
13258. Thus, they were reviewed by
OMB.
Regulatory Flexibility Act
We certify that these proposed rules
will not have a significant economic
impact on a substantial number of small
entities as they affect individuals only.
Therefore, a regulatory flexibility
analysis as provided in the Regulatory
Flexibility Act, as amended, is not
required.
Paperwork Reduction Act
These proposed rules impose no
reporting or recordkeeping requirements
subject to OMB clearance.
(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: August 22, 2005.
Jo Anne B. Barnhart,
Commissioner of Social Security.
For the reasons set forth in the
preamble, we propose to amend
subparts K and L of part 416 of chapter
III of title 20 of the Code of Federal
Regulations as follows:
PART 416—SUPPLEMENTAL
SECURITY INCOME FOR THE AGED,
BLIND, AND DISABLED
Subpart K—[Amended]
1. 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); secs. 211, Pub. L. 93–66, 87 Stat.
154 (42 U.S.C. 1382 note).
2. Section 416.1111, paragraph (a), is
amended by adding a sentence at the
end to read as follows:
§ 416.1111
How we count earned income.
(a) * * * We count wages from a
uniformed service (as defined in
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Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Proposed Rules
§ 404.1330 of this chapter) as received
in the month in which they are earned.
*
*
*
*
*
3. Section 416.1112 is amended by
revising paragraph (c)(2) to read as
follows:
§ 416.1112
count.
Earned income we do not
*
*
*
*
*
(c) * * *
(2) The first $30 of earned income
received in a calendar quarter if you
receive it infrequently or irregularly. We
consider income to be received
infrequently if you receive it only once
during a calendar quarter from a single
source and you did not receive it in the
month immediately preceding that
month or in the month immediately
subsequent to that month. We consider
income to be received irregularly if you
cannot reasonably expect to receive it.
*
*
*
*
*
4. Section 416.1123 is amended by
revising paragraph (a) and adding a new
paragraph (f) to read as follows:
§ 416.1123
income.
Unearned income we do not
*
*
*
*
*
(c) * * *
(3) Any portion of a grant,
scholarship, fellowship, or gift used or
set aside for paying tuition, fees, or
other necessary educational expenses.
* * *
*
*
*
*
*
(6) The first $60 of unearned income
received in a calendar quarter if you
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§ 416.1161 Income of an ineligible spouse,
ineligible parent, and essential person for
deeming purposes.
*
How we count unearned
(a) When we count unearned income.
We count unearned income at the
earliest of the following points: when
you receive it or when it is credited to
your account or set aside for your use.
We determine your unearned income for
each month. We describe exceptions to
the rule on how we count unearned
income in paragraphs (d), (e) and (f) of
this section.
*
*
*
*
*
(f) Uniformed service compensation.
We count compensation from a
uniformed service (as defined in
§ 404.1330 of this chapter) as received
in the month in which it is earned.
5. Section 416.1124 is amended by
revising the first sentence in paragraph
(c)(3), by revising paragraph (c)(6), by
removing the word ‘‘and’’ at the end of
paragraph (c)(20), by removing the
period at the end of paragraph (c)(21)
and adding a semicolon in its place
followed by the word ‘‘and’’, and by
adding paragraph (c)(22) to read as
follows:
§ 416.1124
count.
receive it infrequently or irregularly. We
consider income to be received
infrequently if you receive it only once
during a calendar quarter from a single
source and you did not receive it in the
month immediately preceding that
month or in the month immediately
subsequent to that month. We consider
income to be received irregularly if you
cannot reasonably expect to receive it.
*
*
*
*
*
(22) Interest and dividend income
from a countable resource or from a
resource excluded under a Federal
statute other than section 1613(a) of the
Social Security Act.
6. Section 416.1161 is amended by
revising paragraph (a)(4), by removing
the word ‘‘and’’ at the end of paragraph
(a)(24), by removing the period at the
end of paragraph (a)(25) and adding a
semicolon in its place followed by the
word ‘‘and’’, and by adding a new
paragraph (a)(26) to read as follows:
*
*
*
*
(a) * * *
(4) Any portion of a grant,
scholarship, fellowship, or gift used or
set aside to pay tuition, fees or other
necessary educational expenses;
*
*
*
*
*
(26) Interest and dividend income
from a countable resource or from a
resource excluded under a Federal
statute other than section 1613(a) of the
Social Security Act.
*
*
*
*
*
Subpart L—[Amended]
7. 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).
§ 416.1250 How we count grants,
scholarships, fellowships or gifts.
(a) When we determine your
resources (or your spouse’s, if any), we
will exclude for 9 months any portion
of any grant, scholarship, fellowship, or
gift that you use or set aside to pay the
cost of tuition, fees, or other necessary
educational expenses at any educational
institution, including vocational or
technical institutions. The 9 months
begin the month after the month you
receive the educational assistance.
(b) We will count as a resource any
portion of a grant, scholarship,
fellowship, or gift you (or your spouse,
if any) did not use or set aside to pay
tuition, fees, or other necessary
educational expenses. We will count
such portion of a grant, scholarship,
fellowship or gift as a resource in the
month following the month of receipt. If
you use funds that were set aside for
tuition, fees, or other necessary
educational expenses for another
purpose, or if the funds are no longer set
aside for paying tuition, fees, or other
necessary educational expenses within
the 9-month exclusion period, we will
count the funds as income in the month
you use them for another purpose, or in
the month when they are no longer set
aside for paying tuition, fees, or other
necessary educational expenses,
whichever occurs first. We will consider
any remaining funds as a resource in the
month following the month we count
them as income. We will count any
portion of grants, scholarships,
fellowships, or gifts remaining unspent
after the 9-month exclusion period as a
resource beginning with the 10th month
after you received the educational
assistance.
[FR Doc. 05–17588 Filed 9–2–05; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF THE TREASURY
8. Section 416.1210 is amended by
removing the word ‘‘and’’ at the end of
paragraph (s), by removing the period at
the end of paragraph (t) and adding a
semicolon in its place followed by the
word ‘‘and’’, and by adding a new
paragraph (u) to read as follows:
Internal Revenue Service
§ 416.1210
general.
Section 1446 Regulations; Withholding
on Effectively-Connected Taxable
Income Allocable to Foreign Partners;
Correction
Exclusions from resources;
*
*
*
*
*
(u) Any portion of a grant,
scholarship, fellowship, or gift used or
set aside for paying tuition, fees, or
other necessary educational expenses as
provided in § 416.1250.
9. Section 416.1250 is added to read
as follows:
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26 CFR Part 1
[REG–108524–00]
RIN 1545–BD80
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking and notice of public
hearing.
AGENCY:
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]]>Agencies
[Federal Register Volume 70, Number 171 (Tuesday, September 6, 2005)]
[Proposed Rules]
[Pages 52949-52952]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-17588]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
RIN 0960-AG13
Changes to the Income and Resources Provisions for Supplemental
Security Income (SSI) Based on Sections 430, 435, and 436 of the Social
Security Protection Act (SSPA) of 2004
AGENCY: Social Security Administration (SSA).
ACTION: Notice of proposed rulemaking.
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SUMMARY: We propose to revise our regulations on how we determine an
individual's income and resources under the SSI program based on the
SSPA of 2004, enacted on March 2, 2004. Some of the provisions of the
SSPA make a number of changes in the way we determine income and
resources including: how we calculate infrequent and irregular income;
what interest and dividend income we exclude; how we count cash
military compensation; and when we exclude gifts for tuition or
educational expenses from income or resources. We are also proposing to
apply the exclusions required by the SSPA when determining the
countable income and resources of an ineligible spouse or ineligible
parent.
DATES: To be sure that we consider your comments, we must receive them
by November 7, 2005.
ADDRESSES: You may give us your comments: by using our Internet site
facility (i.e., Social Security Online) at https://policy.ssa.gov/erm/
rules.nsf/Rules+Open+To+Comment or the Federal eRulemaking Portal at
https://www.regulations.gov; by e-mail to regulations@ssa.gov; by
telefax to (410) 966-2830; or by letter to the Commissioner of Social
Security, P.O. Box 17703, Baltimore, Maryland 21235-7703. You may also
deliver them to the Office of Regulations, Social Security
Administration, 100 Altmeyer Building, 6401 Security Boulevard,
Baltimore, Maryland 21235-6401, between 8 a.m. and 4:30 p.m. on regular
business days. Comments are posted on our Internet site, or you may
inspect them on regular business days by making arrangements with the
contact person shown in this preamble.
Electronic Version
The electronic file of this document is available on the date of
publication in the Federal Register at https://www.gpoaccess.gov/fr/
index.html.
FOR FURTHER INFORMATION CONTACT: Barbara E. Snyder, Social Insurance
Specialist, Social Security Administration, Office of Income Security
Programs, 252 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD
21235-6401, (410) 965-5655 or TTY 1-800-966-5906, 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 https://
www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
Background
The basic purpose of the SSI program (title XVI of the Social
Security Act (the Act)) is to ensure a minimum level of income to
people who are age 65 or older, or blind or disabled, and who have
limited income and resources. Section 1611 of the Act provides that SSI
payments can be made only to people who have income and resources below
specified amounts. Therefore, the amount of income and resources a
person has is a major factor in deciding whether the person can receive
SSI benefits and in computing the amount of the benefits.
Public Law 108-203, the SSPA of 2004, was enacted on March 2, 2004.
Sections 430, 435, and 436 of this law affect how income and resources
are determined in the SSI program.
Section 430
Section 430 of Public Law 108-203 amended section 1612(b) of the
Act as follows:
[[Page 52950]]
Change the Calculation of Infrequent and Irregular Income From a
Monthly to a Quarterly Basis
Prior to the SSPA of 2004, we did not count up to $10 of your
earned income in a month or $20 of unearned income in a month if it was
infrequent or irregular; that is, if you received it only once in a
calendar quarter from a single source or if you could not reasonably
have expected it. If the total amount of your infrequent or irregular
income for a month exceeded $10 of earned income or $20 of unearned
income, we could not use this exclusion. Based on section 430 of the
SSPA of 2004, we now exclude the first $30 per calendar quarter of
earned income and the first $60 per calendar quarter of unearned income
if you receive it infrequently or irregularly. This provision applies
to benefits payable on or after July 1, 2004.
Consistent with the provision in section 1612(b)(3) of the Act (as
amended by section 430(a) of the SSPA) which provides that this
exclusion is ``determined in accordance with criteria prescribed by the
Commissioner of Social Security'', we are also proposing to revise the
definition of infrequent income. We propose that we will consider
income to be received infrequently if you receive it only once during a
calendar quarter from a single source and you did not receive it in the
month immediately preceding that month or in the month immediately
subsequent to that month, regardless of whether or not these payments
occur in different calendar quarters. We consider income to be received
irregularly if you cannot reasonably expect to receive it.
Exclude From Income All Interest and Dividend Income Earned on
Countable Resources
Prior to the SSPA of 2004, there was no specific exclusion for
interest and dividend income you earned on countable and certain
excludable resources. Based on section 430 of the SSPA of 2004, we will
exclude from your income determination interest or dividend income you
earn on resources which are countable under section 1613(a) of the Act.
Also, based on section 430, we will not count interest or dividend
income on resources that are excluded based on a Federal statute other
than section 1613(a) of the Act. These amendments apply to benefits
payable on or after July 1, 2004.
Section 435
Prior to the SSPA of 2004, we did not count as unearned income any
portion of a grant, scholarship, or fellowship you used to pay tuition,
fees, or other necessary educational expenses. However, we did count
any portion you set aside or actually used for food, clothing, or
shelter as income in the month you received it and, to the extent any
portion of it was retained, as a resource the month following the month
you received it. Under these proposed rules, any portion set aside or
used for food, clothing, or shelter will continue to count as income in
the month received or as a resource if retained.
Section 435 of the SSPA of 2004 amended section 1612(b)(7) of the
Act to provide that we will exclude a gift (or portion of a gift) you
use to pay the cost of tuition and fees at any educational (including
technical or vocational education) institution when we determine your
income (and the income of your eligible spouse). Additionally, section
435 of the SSPA of 2004 amended section 1613(a) of the Act to provide
that we will exclude from resources for 9 months after the month in
which it is received, any grant, scholarship, fellowship, or gift (or
portion of a gift) you use to pay the cost of tuition and fees at an
educational (including technical or vocational education) institution.
These amendments apply to benefits payable on or after June 1, 2004.
We also plan to extend this resource exclusion to any portion of a
grant, scholarship, or fellowship retained after the month of receipt.
Prior to the SSPA of 2004, section 1612(b)(7) had excluded ``any
portion'' of a grant, scholarship, or fellowship from income. When the
resource exclusion was added by the SSPA, the exclusion covered grants,
scholarships, and fellowships, but only specifically referenced
portions with respect to gifts. In order to have consistent policy on
exclusions related to tuition and educational expenses, we are
proposing to exclude from resources for 9 months any portion of a
grant, scholarship, fellowship, or gift used to pay necessary
educational expenses. In addition, we are providing in these proposed
rules that any portion of a grant, scholarship, fellowship, or gift
intended to be used for tuition, fees, or other necessary educational
expenses that is used for another purpose during the 9-month resource
exclusion period will be counted as income in the month it is used for
another purpose.
Section 436
Under our current rules, your income is counted in the month you
receive it rather than in the month you earn it. We count wages and
unearned income at the earliest of the following points:
When you receive them,
When they are credited to your account, or
When they are set aside for your use.
Members of a uniformed service (as defined in 20 CFR 404.1330) are
paid twice per month, and receive one Leave and Earnings Statement
(LES) at the beginning of the month, which reflects their earnings for
services performed in the prior month. The earnings shown on the
monthly LES consist of the money actually paid in the second payment
from the previous month and the payment received at the beginning of
the current month. The payment received at the beginning of the current
month is actually for services performed in the last half of the
previous month. Thus, both payments reflected on the LES represent
services performed in the previous month. Because wages are counted
when paid, the portion of the money that was paid in the previous month
must be considered as received in the previous month, not the current
month, and the portion paid at the beginning of the current month must
be considered in the current month. Prior to the SSPA of 2004, we had
to apply a complex formula to the information on the LES for 2
consecutive months to determine one month's wages and unearned income.
Section 436 of the SSPA amended section 1611(c) of the Act to
provide that remuneration you receive for services performed as a
member of a uniformed service may be treated as received in the month
in which you earned it, if the Commissioner of Social Security (the
Commissioner) determines that this method would promote the economical
and efficient administration of the SSI program. This method of
counting allows us to count the money shown on the LES for any month as
received in that month, thereby eliminating the need to apply a complex
formula to determine monthly earnings. Instead, we can determine
monthly earnings by simply adding the amounts shown on the LES issued
for that month.
Extending Exclusions in Section 430, 435, and 436 to the Deeming
Process
Section 1614(f) of the Act requires that, when we determine an
individual's eligibility for SSI benefits, we must consider the income
and resources of an ineligible spouse living in the same household, or,
in the case of a child under the age of 18, the income and resources of
an ineligible parent living in the same household. We use the term
``deeming'' to identify this process of considering part of an
ineligible spouse's or parent's income and
[[Page 52951]]
resources to be the individual's own income and resources. Section
1614(f) also grants the Commissioner the discretion to waive the
deeming of income and resources from an ineligible spouse or parent to
an eligible individual when the Commissioner determines that deeming
would be inequitable under the circumstances.
In addition to adding to our regulations the changes in how we
determine an eligible individual's income and resources required by the
SSPA, we propose to apply these changes when determining the countable
income and resources of an ineligible spouse or ineligible parent.
These changes are:
Change the calculation of infrequent and irregular income
from a monthly to a quarterly basis, and revise the definition of
infrequent income.
Exclude from income interest or dividends earned on
countable resources and resources excluded under other Federal
statutes.
Exclude from income gifts used to pay tuition, fees, or
other necessary educational expenses at any educational institution,
including vocational and technical institutions.
Exclude from resources gifts used to pay tuition, fees, or
other necessary educational expenses at an educational institution
(including vocational or technical institution) for 9 months beginning
the month after the month the educational assistance was received.
Consider wages and unearned income from a uniformed
service to be received in the month in which such compensation is
earned.
Extending these changes to the deeming process is consistent with
the SSI program's longstanding treatment of income and resources of
spouses and parents, as authorized by section 1614(f) of the Act. This
treatment avoids using assistance programs that benefit spouses and
parents to indirectly support SSI recipients and provides consistent
treatment of income and resources throughout the program.
Explanation of Proposed Changes
We propose to make the following changes to our rules on
determining income and resources under the SSI program to implement the
provisions of the SSPA:
We propose to revise Sec. 416.1112(c)(2) and Sec.
416.1124(c)(6) to reflect the provision of section 430 that changes the
calculation of infrequent and irregular income from a monthly to a
quarterly basis, and to revise the definition of infrequent income.
We also propose to add a new Sec. 416.1124(c)(22) to
reflect the provision of section 430 that excludes from income interest
or dividends earned on countable resources and resources excluded under
other Federal statutes.
We propose to amend Sec. 416.1124(c)(3) to reflect the
provision in section 435 that states that gifts (or portions of gifts)
used to pay tuition and fees at any educational institution, including
vocational and technical institutions, are excluded from income.
Additionally, we propose to add a new Sec. 416.1210(u)
and a new Sec. 416.1250 to reflect the provision in section 435 that
excludes from resources any grants, scholarships, fellowships, or gifts
used to pay tuition and fees at an educational institution (including
vocational or technical institution) for 9 months beginning the month
after the month the educational assistance was received.
We propose to amend Sec. 416.1111(a) and Sec.
416.1123(a), and add a new Sec. 416.1123(f) to reflect section 436
that states that we may consider wages and unearned income from a
uniformed service to be received in the month in which such
compensation is earned. We also propose a technical amendment to add a
cross-reference in Sec. 416.1123(a) to Sec. 416.1123(e).
Finally, we propose to amend Sec. 416.1161 by revising
paragraph (a)(4) and adding a new paragraph (a)(26) to exclude certain
interest and dividends and gifts used to pay educational expenses from
the income of an ineligible spouse and ineligible parent for deeming
purposes.
Clarity of These Regulations
Executive Order 12866, as amended by Executive Order 13258,
requires each agency to write all rules in plain language. In addition
to comments you may have on these proposed rules, we also invite your
comments on how to make these rules easier to understand. For example:
Have we organized the material to suit your needs?
Are the requirements in the rules clearly stated?
Do the rules contain technical language or jargon that is
unclear?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the rules easier to understand?
Would more (but shorter) sections be better?
Could we improve clarity by adding tables, lists, or
diagrams?
What else could we do to make the rules easier to
understand?
Regulatory Procedures
Executive Order 12866, as Amended by Executive Order 13258
We have consulted with the Office of Management and Budget (OMB)
and determined that these proposed rules meet the criteria for a
significant regulatory action under Executive Order 12866, as amended
by Executive Order 13258. Thus, they were reviewed by OMB.
Regulatory Flexibility Act
We certify that these proposed rules will not have a significant
economic impact on a substantial number of small entities as they
affect individuals only. Therefore, a regulatory flexibility analysis
as provided in the Regulatory Flexibility Act, as amended, is not
required.
Paperwork Reduction Act
These proposed rules impose no reporting or recordkeeping
requirements subject to OMB clearance.
(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: August 22, 2005.
Jo Anne B. Barnhart,
Commissioner of Social Security.
For the reasons set forth in the preamble, we propose to amend
subparts K and L of part 416 of chapter III of title 20 of the Code of
Federal Regulations as follows:
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart K--[Amended]
1. 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); secs. 211,
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).
2. Section 416.1111, paragraph (a), is amended by adding a sentence
at the end to read as follows:
Sec. 416.1111 How we count earned income.
(a) * * * We count wages from a uniformed service (as defined in
[[Page 52952]]
Sec. 404.1330 of this chapter) as received in the month in which they
are earned.
* * * * *
3. Section 416.1112 is amended by revising paragraph (c)(2) to read
as follows:
Sec. 416.1112 Earned income we do not count.
* * * * *
(c) * * *
(2) The first $30 of earned income received in a calendar quarter
if you receive it infrequently or irregularly. We consider income to be
received infrequently if you receive it only once during a calendar
quarter from a single source and you did not receive it in the month
immediately preceding that month or in the month immediately subsequent
to that month. We consider income to be received irregularly if you
cannot reasonably expect to receive it.
* * * * *
4. Section 416.1123 is amended by revising paragraph (a) and adding
a new paragraph (f) to read as follows:
Sec. 416.1123 How we count unearned income.
(a) When we count unearned income. We count unearned income at the
earliest of the following points: when you receive it or when it is
credited to your account or set aside for your use. We determine your
unearned income for each month. We describe exceptions to the rule on
how we count unearned income in paragraphs (d), (e) and (f) of this
section.
* * * * *
(f) Uniformed service compensation. We count compensation from a
uniformed service (as defined in Sec. 404.1330 of this chapter) as
received in the month in which it is earned.
5. Section 416.1124 is amended by revising the first sentence in
paragraph (c)(3), by revising paragraph (c)(6), by removing the word
``and'' at the end of paragraph (c)(20), by removing the period at the
end of paragraph (c)(21) and adding a semicolon in its place followed
by the word ``and'', and by adding paragraph (c)(22) to read as
follows:
Sec. 416.1124 Unearned income we do not count.
* * * * *
(c) * * *
(3) Any portion of a grant, scholarship, fellowship, or gift used
or set aside for paying tuition, fees, or other necessary educational
expenses. * * *
* * * * *
(6) The first $60 of unearned income received in a calendar quarter
if you receive it infrequently or irregularly. We consider income to be
received infrequently if you receive it only once during a calendar
quarter from a single source and you did not receive it in the month
immediately preceding that month or in the month immediately subsequent
to that month. We consider income to be received irregularly if you
cannot reasonably expect to receive it.
* * * * *
(22) Interest and dividend income from a countable resource or from
a resource excluded under a Federal statute other than section 1613(a)
of the Social Security Act.
6. Section 416.1161 is amended by revising paragraph (a)(4), by
removing the word ``and'' at the end of paragraph (a)(24), by removing
the period at the end of paragraph (a)(25) and adding a semicolon in
its place followed by the word ``and'', and by adding a new paragraph
(a)(26) to read as follows:
Sec. 416.1161 Income of an ineligible spouse, ineligible parent, and
essential person for deeming purposes.
* * * * *
(a) * * *
(4) Any portion of a grant, scholarship, fellowship, or gift used
or set aside to pay tuition, fees or other necessary educational
expenses;
* * * * *
(26) Interest and dividend income from a countable resource or from
a resource excluded under a Federal statute other than section 1613(a)
of the Social Security Act.
* * * * *
Subpart L--[Amended]
7. 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).
8. Section 416.1210 is amended by removing the word ``and'' at the
end of paragraph (s), by removing the period at the end of paragraph
(t) and adding a semicolon in its place followed by the word ``and'',
and by adding a new paragraph (u) to read as follows:
Sec. 416.1210 Exclusions from resources; general.
* * * * *
(u) Any portion of a grant, scholarship, fellowship, or gift used
or set aside for paying tuition, fees, or other necessary educational
expenses as provided in Sec. 416.1250.
9. Section 416.1250 is added to read as follows:
Sec. 416.1250 How we count grants, scholarships, fellowships or
gifts.
(a) When we determine your resources (or your spouse's, if any), we
will exclude for 9 months any portion of any grant, scholarship,
fellowship, or gift that you use or set aside to pay the cost of
tuition, fees, or other necessary educational expenses at any
educational institution, including vocational or technical
institutions. The 9 months begin the month after the month you receive
the educational assistance.
(b) We will count as a resource any portion of a grant,
scholarship, fellowship, or gift you (or your spouse, if any) did not
use or set aside to pay tuition, fees, or other necessary educational
expenses. We will count such portion of a grant, scholarship,
fellowship or gift as a resource in the month following the month of
receipt. If you use funds that were set aside for tuition, fees, or
other necessary educational expenses for another purpose, or if the
funds are no longer set aside for paying tuition, fees, or other
necessary educational expenses within the 9-month exclusion period, we
will count the funds as income in the month you use them for another
purpose, or in the month when they are no longer set aside for paying
tuition, fees, or other necessary educational expenses, whichever
occurs first. We will consider any remaining funds as a resource in the
month following the month we count them as income. We will count any
portion of grants, scholarships, fellowships, or gifts remaining
unspent after the 9-month exclusion period as a resource beginning with
the 10th month after you received the educational assistance.
[FR Doc. 05-17588 Filed 9-2-05; 8:45 am]
BILLING CODE 4191-02-P
