Technical Revisions to Overpayment Rules, 65541-65543 [E8-26224]

Download as PDF Federal Register / Vol. 73, No. 214 / Tuesday, November 4, 2008 / Rules and Regulations 65541 EQR DATA DICTIONARY—Continued [Appendix C. Hub] HUB Definition ZP26 ..................................... The set of delivery points associated with Path 26 on the California transmission grid commonly identified as and agreed to by the counterparties to constitute the ZP26 Hub. EQR DATA DICTIONARY EQR DATA DICTIONARY—Continued Appendix D. Time Zone Appendix F. Rate Units Time zone Definition AD ..................... AP ..................... AS ..................... CD .................... CP ..................... CS ..................... ED ..................... EP ..................... ES ..................... MD .................... MP .................... MS .................... NA ..................... PD ..................... PP ..................... PS ..................... UT ..................... Rate units $/MW–DAY ....... $/MW–MO ........ Atlantic Daylight. Atlantic Prevailing. Atlantic Standard. Central Daylight. Central Prevailing. Central Standard. Eastern Daylight. Eastern Prevailing. Eastern Standard. Mountain Daylight. Mountain Prevailing. Mountain Standard. Not Applicable. Pacific Daylight. Pacific Prevailing. Pacific Standard. Universal Time. Definition dollars per megawatt day. dollars per megawatt month. dollars per megawatt week. dollars per megawatt year. dollars per megavar year. dollars per reactive kilovar amperes. cents. cents per kilovolt amperes. cents per kilowatt hour. rate not specified in any other units. $/MW–WK ........ $/MW–YR ......... $/MVAR–YR ..... $/RKVA ............. CENTS ............. CENTS/KVR ..... CENTS/KWH .... FLAT RATE ...... [FR Doc. E8–26209 Filed 11–3–08; 8:45 am] BILLING CODE 6717–01–P EQR DATA DICTIONARY SOCIAL SECURITY ADMINISTRATION Appendix E. Units 20 CFR Parts 404 and 416 Units Definition KV ..................... KVA .................. KVR .................. KW .................... KWH ................. KW–DAY .......... KW–MO ............ KW–WK ............ KW–YR ............. MVAR–YR ........ MW ................... MWH ................. MW–DAY .......... MW–MO ........... MW–WK ........... MW–YR ............ RKVA ................ FLAT RATE ...... Kilovolt. Kilovolt Amperes. Kilovar. Kilowatt. Kilowatt Hour. Kilowatt Day. Kilowatt Month. Kilowatt Week. Kilowatt Year. Megavar Year. Megawatt. Megawatt Hour. Megawatt Day. Megawatt Month. Megawatt Week. Megawatt Year. Reactive Kilovolt Amperes. Flat Rate. EQR DATA DICTIONARY Appendix F. Rate Units Rate units Definition dwashington3 on PRODPC61 with RULES $/KV .................. $/KVA ............... $/KVR ............... $/KW ................. $/KWH .............. $/KW–DAY ....... $/KW–MO ......... $/KW–WK ......... $/KW–YR .......... $/MW ................ $/MWH .............. VerDate Aug<31>2005 dollars per dollars per peres. dollars per dollars per dollars per dollars per dollars per dollars per dollars per dollars per dollars per kilovolt. kilovolt amkilovar. kilowatt. kilowatt hour. kilowatt day. kilowatt month. kilowatt week. kilowatt year. megawatt. megawatt hour. 15:01 Nov 03, 2008 Jkt 217001 [Docket No. SSA–2007–0093] RIN 0960–AG02 Technical Revisions to Overpayment Rules Social Security Administration. Final rules. AGENCY: ACTION: SUMMARY: These rules amend our title II regulations to explicitly provide that we apply an underpayment due an individual to reduce an overpayment to that individual in certain cases. Our title XVI regulations already state this policy. Additionally, these rules reflect our procedures for collecting overpayments when a payment of more than the correct amount is made to a representative payee on behalf of a beneficiary after the beneficiary’s death. These rules clarify that we collect overpayments in this situation from only the representative payee or his estate but not from the representative payee’s spouse or from the spouse’s estate. These rules are effective December 4, 2008. DATES: FOR FURTHER INFORMATION CONTACT: Joshua Silverman, Office of Regulations, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235–6401, (410) 594–2128, for PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 information about these rules. 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. Explanation of Changes Reducing Overpayments We can apply underpayments to reduce overpayments. 42 U.S.C. 404(a)(1)(A) and 1383(b)(1)(A). Our current title XVI regulations explicitly provide that we ‘‘apply any underpayment due an individual to reduce any overpayment to that individual that we determine to exist * * * for a different period, unless we have waived recovery of the overpayment * * *.’’ 20 CFR 416.543. However, there is no parallel section in our current title II regulations. We are modifying our regulations to reflect our current process of applying underpayments to reduce overpayments under title II. We are amending 20 CFR 404.503 to state that we will apply any underpayment due an individual to reduce any overpayment owed by that individual that we determine to exist for a different period, unless we waive recovery. In cases when the underpaid individual has died, we will make the adjustment before distributing any underpayment according to the priority list in 20 CFR 404.503(b). Overpayments Made to Representative Payees Under title II, we currently collect overpayments from an overpaid beneficiary, from any other beneficiary entitled to benefits based an overpaid beneficiary’s earnings, or from the estate of a deceased overpaid individual. 20 CFR 404.502. Under title XVI, we may collect overpayments from the overpaid recipient, his eligible spouse, or the recipient’s or eligible spouse’s estate if one of them dies before we finish E:\FR\FM\04NOR1.SGM 04NOR1 dwashington3 on PRODPC61 with RULES 65542 Federal Register / Vol. 73, No. 214 / Tuesday, November 4, 2008 / Rules and Regulations collecting the overpayment. 20 CFR 416.570. When a representative payee receives benefits on behalf of a beneficiary, we generally collect any overpayment using these same procedures. However, when a representative payee receives benefits intended for a beneficiary after the beneficiary has died, the representative payee is liable for repaying the overpayment. 42 U.S.C. 404(a)(2) and 1383(b)(2). We are updating our regulations to reflect these statutory changes that became effective on December 14, 2000. These rules clarify that we collect these overpayments solely from the representative payee and his estate. We do not collect from the benefits of the representative payee’s spouse, the estate of the spouse, the auxiliaries of the overpaid representative payee, or the deceased beneficiary’s estate. We will continue to use all means for collecting such overpayments allowed by federal law, including adjustment of benefits or lump sums, cross-program recovery, administrative offset, tax refund offset, administrative wage garnishment, and federal salary offset. See 20 CFR 404.520, 404.527, 404.530, 416.572, 416.580, 416.590, 422.310, and 422.403. For title II, we are adding a new paragraph, 20 CFR 404.502(a)(3), which states that we apply the procedures found in paragraph 20 CFR 404.502(a)(1) to recover an overpayment made to a representative payee after the death of a beneficiary. In this situation, we will not recover these overpayments from any other individual entitled to benefits based on the beneficiary’s earnings because only the representative payee or his estate is liable for repayment. We also are adding paragraph 20 CFR 404.502(b)(5) to state that, if an overpaid representative payee dies before we recover the full amount of the overpayment, we will collect the overpayment from the representative payee’s estate, but we will not adjust the benefits based on the representative payee’s record owed to the representative payee’s spouse or children. For title XVI, we are redesignating the existing language in 20 CFR 416.570 as paragraph (a) and are adding a new paragraph (b). This new paragraph provides that some of the procedures in paragraph (a) will apply to recover overpayments from a representative payee or his estate. We are clarifying that we will not adjust benefits owed to the representative payee’s eligible spouse or the eligible spouse’s estate because only the representative payee is liable. VerDate Aug<31>2005 15:01 Nov 03, 2008 Jkt 217001 Public Comments In the notice of proposed rulemaking we published at 73 FR 40997 (July 17, 2008), we provided the public with a 60-day period in which to comment on the proposed changes. That comment period ended on September 15, 2008. We did not receive any comments. Corrections We are making three minor corrections. First, we have corrected the last sentence in 20 CFR 404.502(b)(5) because words were unintentionally omitted from the proposed rules. The revised sentence clarifies that we do not collect the overpayments at issue under 20 CFR 404.502(b)(3) from anyone other than the representative payee, but we may use any underpayment due to the representative payee to reduce an outstanding overpayment. We also corrected the title of 20 CFR 416.570(b) to use the term ‘‘recipient’’ instead of ‘‘beneficiary’’ for consistency with our rules. Finally, we have amended the language in 20 CFR 416.570(b)(2) to make clear that we will not collect these overpayments from the eligible spouse or the eligible spouse’s estate. Insurance, Reporting and recordkeeping requirements, Social Security. 20 CFR Part 416 Administrative practice and procedure, Reporting and recordkeeping requirements, Supplemental Security Income (SSI). Dated: October 23, 2008. Michael J. Astrue, Commissioner of Social Security. For the reasons set forth in the preamble, we are amending subpart F of part 404 and subpart E 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 F—[Amended] 1. The authority citation for subpart F of part 404 continues to read as follows: ■ Authority: Secs. 204, 205(a), 702(a)(5), and 1147 of the Social Security Act (42 U.S.C. 404, 405(a), 902(a)(5), and 1320b–17); 31 U.S.C. 3720A. Regulatory Procedures 2. Amend § 404.502 by adding paragraphs (a)(3) and (b)(5) to read as follows: Executive Order 12866, as Amended § 404.502 We have consulted with the Office of Management and Budget (OMB) and determined that these final rules do not meet the criteria for a significant regulatory action under Executive Order 12866, as amended. Thus, they were not subject to OMB review. 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 individuals only. Therefore, a regulatory flexibility analysis as provided in the Regulatory Flexibility Act, as amended, is not required. Paperwork Reduction Act This rule will impose no additional reporting or recordkeeping requirements requiring 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) List of Subjects 20 CFR Part 404 Administrative practice and procedure, Blind, Disability benefits, Old-age, Survivors and Disability PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 ■ Overpayments. * * * * * (a) * * * (3) If a representative payee receives a payment on behalf of a beneficiary after that beneficiary dies, the representative payee or his estate is solely liable for repaying the overpayment. If the representative payee is entitled to a monthly benefit or a lump sum under title II of the Act at the time we determine that an overpayment exists or at any time thereafter, except as provided in paragraphs (c) and (d) of this section, we will not pay the monthly benefits or the lump sum to the representative payee until the amount of the overpayment has been repaid. We will make such adjustments against any monthly benefit or lump sum under title II of the Act to which the representative payee is entitled whether payable on the basis of such representative payee’s earnings or the earnings of another individual. (b) * * * (5) The methods in paragraphs (b)(1) and (b)(2) of this section for overpayments owed by a representative payee for payments made after the beneficiary’s death. We will not recover such overpayments from any person other than the individual who was representative payee or his estate, but we may recover these overpayments E:\FR\FM\04NOR1.SGM 04NOR1 Federal Register / Vol. 73, No. 214 / Tuesday, November 4, 2008 / Rules and Regulations from such other person under § 404.503(b). * * * * * ■ 3. Amend § 404.503 by adding a second sentence to paragraph (a) and revising paragraph (b) introductory text to read as follows: § 404.503 Underpayments. * * * * * (a) Individual underpaid is living. * * * However, if we determine that the individual to whom an underpayment is due also received an overpayment as defined in § 404.501(a) for a different period, we will apply any underpayment due the individual to reduce that overpayment, unless we have waived recovery of the overpayment under the provisions of §§ 404.506 through 404.512. (b) Individual dies before adjustment of underpayment. If an individual who has been underpaid dies before receiving payment or negotiating a check or checks representing such payment, we first apply any amounts due the deceased individual against any overpayments as defined in § 404.501(a) owed by the deceased individual, unless we have waived recovery of such overpayment under the provisions of §§ 404.506 through 404.512. We then will distribute any remaining underpayment to the living person (or persons) in the highest order of priority as follows: * * * * * PART 416—SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND DISABLED Subpart E—[Amended] 4. The authority citation for subpart E of part 416 continues to read as follows: ■ Authority: Secs. 702(a)(5), 1147, 1601, 1602, 1611(c) and (e), and 1631(a)–(d) and (g) of the Social Security Act (42 U.S.C. 902(a)(5), 1320b–17, 1381, 1381a, 1382(c) and (e), and 1383(a)–(d) and (g)); 31 U.S.C. 3720A. 5. Amend § 416.570 by revising the section heading, redesignating the existing text as paragraph (a), adding a heading to redesignated paragraph (a), and adding new paragraph (b) to read as follows: ■ dwashington3 on PRODPC61 with RULES § 416.570 Adjustment. (a) General. * * * (b) Overpayment made to representative payee after the recipient’s death. A representative payee or his estate is solely liable for repaying an overpayment made to the representative payee on behalf of a recipient after the recipient’s death. In such case, we will VerDate Aug<31>2005 15:01 Nov 03, 2008 Jkt 217001 recover the overpayment according to paragraph (a) of this section, except that: (1) We will not adjust any other payment due to the eligible spouse of the overpaid representative payee to recover the overpayment, and (2) If the overpaid representative payee dies before we complete adjustment, we will not seek to recover the overpayment from the eligible spouse or the estate of the eligible spouse. [FR Doc. E8–26224 Filed 11–3–08; 8:45 am] BILLING CODE 4191–02–P DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 359 Offering of United States Savings Bonds, Series I Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. AGENCY: SUMMARY: A Series I savings bond accrues interest based on both a fixed rate of return and a semiannual inflation rate. A single, annual interest rate called the composite rate reflects the combined effects of the fixed rate and the semiannual inflation rate. This amendment clarifies that the fixed rate of return and the composite rate will always be greater than or equal to 0%. This amendment is for clarification purposes only and makes no substantive change to the existing regulations. DATES: Effective: November 4, 2008. ADDRESSES: You can download this final rule at the following Internet addresses: http://www.publicdebt.treas.gov or http://www.gpoaccess.gov/ecfr. FOR FURTHER INFORMATION CONTACT: Karthik Ramanathan, Director, Office of Debt Management, Domestic Finance, Departmental Offices, Department of the Treasury, at (202) 622–2042 or karthik.ramanathan@do.treas.gov. Elisha Whipkey, Director, Division of Program Administration, Office of Retail Securities, Bureau of the Public Debt, at (304) 480–6319 or elisha.whipkey@bpd.treas.gov. Dean Adams, Attorney-Adviser, Edward Gronseth, Deputy Chief Counsel, Office of the Chief Counsel, Bureau of the Public Debt, at (304) 480– 8692 or dean.adams@bpd.treas.gov. SUPPLEMENTARY INFORMATION: A Series I savings bond accrues interest based on both a fixed rate of return and a semiannual inflation rate. The Secretary of the Treasury determines the fixed rate PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 65543 of return. The fixed rate is established for the life of the bond. This amendment clarifies that the fixed rate of return will always be greater than or equal to 0%. The Department of the Treasury issues these regulations pursuant to the authority contained in 5 U.S.C. 301 and 31 U.S.C. 3105. The composite rate is a single, annual interest rate that reflects the combined effects of the fixed rate and the semiannual inflation rate. The composite rate could possibly be less than the fixed rate in deflationary situations. This amendment clarifies that the composite rate will always be greater than or equal to 0%. This amendment makes no substantive change to the regulations but will benefit investors by clarifying that neither the fixed rate of return nor the composite rate will be negative under any market conditions. Procedural Requirements: This final rule does not meet the criteria for a ‘‘significant regulatory action’’ as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. Because this final rule relates to matters of public contract and procedures for United States securities, notice and public procedure and delayed effective date requirements are inapplicable, pursuant to 5 U.S.C. 553(a)(2). As no notice of proposed rulemaking is required, the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) does not apply. We ask for no new collections of information in this final rule. Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply. List of Subjects in 31 CFR Part 359 Bonds, Federal Reserve system, Government securities, Securities. ■ Accordingly, for the reasons set out in the preamble, 31 CFR Chapter II, Subchapter B, is amended as follows: PART 359—OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I 1. The authority citation for part 359 continues to read as follows: ■ Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105. ■ 2. Revise § 359.10 to read as follows: § 359.10 What is the fixed rate of return? The Secretary, or the Secretary’s designee, determines the fixed rate of return. The fixed rate is established for the life of the bond. The fixed rate will always be greater than or equal to E:\FR\FM\04NOR1.SGM 04NOR1

Agencies

[Federal Register Volume 73, Number 214 (Tuesday, November 4, 2008)]
[Rules and Regulations]
[Pages 65541-65543]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26224]


=======================================================================
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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Docket No. SSA-2007-0093]
RIN 0960-AG02


Technical Revisions to Overpayment Rules

AGENCY: Social Security Administration.

ACTION: Final rules.

-----------------------------------------------------------------------

SUMMARY: These rules amend our title II regulations to explicitly 
provide that we apply an underpayment due an individual to reduce an 
overpayment to that individual in certain cases. Our title XVI 
regulations already state this policy. Additionally, these rules 
reflect our procedures for collecting overpayments when a payment of 
more than the correct amount is made to a representative payee on 
behalf of a beneficiary after the beneficiary's death. These rules 
clarify that we collect overpayments in this situation from only the 
representative payee or his estate but not from the representative 
payee's spouse or from the spouse's estate.

DATES: These rules are effective December 4, 2008.

FOR FURTHER INFORMATION CONTACT: Joshua Silverman, Office of 
Regulations, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 594-2128, for information about these 
rules. 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.

Explanation of Changes

Reducing Overpayments
    We can apply underpayments to reduce overpayments. 42 U.S.C. 
404(a)(1)(A) and 1383(b)(1)(A). Our current title XVI regulations 
explicitly provide that we ``apply any underpayment due an individual 
to reduce any overpayment to that individual that we determine to exist 
* * * for a different period, unless we have waived recovery of the 
overpayment * * *.'' 20 CFR 416.543. However, there is no parallel 
section in our current title II regulations. We are modifying our 
regulations to reflect our current process of applying underpayments to 
reduce overpayments under title II.
    We are amending 20 CFR 404.503 to state that we will apply any 
underpayment due an individual to reduce any overpayment owed by that 
individual that we determine to exist for a different period, unless we 
waive recovery. In cases when the underpaid individual has died, we 
will make the adjustment before distributing any underpayment according 
to the priority list in 20 CFR 404.503(b).
Overpayments Made to Representative Payees
    Under title II, we currently collect overpayments from an overpaid 
beneficiary, from any other beneficiary entitled to benefits based an 
overpaid beneficiary's earnings, or from the estate of a deceased 
overpaid individual. 20 CFR 404.502. Under title XVI, we may collect 
overpayments from the overpaid recipient, his eligible spouse, or the 
recipient's or eligible spouse's estate if one of them dies before we 
finish

[[Page 65542]]

collecting the overpayment. 20 CFR 416.570.
    When a representative payee receives benefits on behalf of a 
beneficiary, we generally collect any overpayment using these same 
procedures. However, when a representative payee receives benefits 
intended for a beneficiary after the beneficiary has died, the 
representative payee is liable for repaying the overpayment. 42 U.S.C. 
404(a)(2) and 1383(b)(2). We are updating our regulations to reflect 
these statutory changes that became effective on December 14, 2000.
    These rules clarify that we collect these overpayments solely from 
the representative payee and his estate. We do not collect from the 
benefits of the representative payee's spouse, the estate of the 
spouse, the auxiliaries of the overpaid representative payee, or the 
deceased beneficiary's estate. We will continue to use all means for 
collecting such overpayments allowed by federal law, including 
adjustment of benefits or lump sums, cross-program recovery, 
administrative offset, tax refund offset, administrative wage 
garnishment, and federal salary offset. See 20 CFR 404.520, 404.527, 
404.530, 416.572, 416.580, 416.590, 422.310, and 422.403.
    For title II, we are adding a new paragraph, 20 CFR 404.502(a)(3), 
which states that we apply the procedures found in paragraph 20 CFR 
404.502(a)(1) to recover an overpayment made to a representative payee 
after the death of a beneficiary. In this situation, we will not 
recover these overpayments from any other individual entitled to 
benefits based on the beneficiary's earnings because only the 
representative payee or his estate is liable for repayment. We also are 
adding paragraph 20 CFR 404.502(b)(5) to state that, if an overpaid 
representative payee dies before we recover the full amount of the 
overpayment, we will collect the overpayment from the representative 
payee's estate, but we will not adjust the benefits based on the 
representative payee's record owed to the representative payee's spouse 
or children.
    For title XVI, we are redesignating the existing language in 20 CFR 
416.570 as paragraph (a) and are adding a new paragraph (b). This new 
paragraph provides that some of the procedures in paragraph (a) will 
apply to recover overpayments from a representative payee or his 
estate. We are clarifying that we will not adjust benefits owed to the 
representative payee's eligible spouse or the eligible spouse's estate 
because only the representative payee is liable.

Public Comments

    In the notice of proposed rulemaking we published at 73 FR 40997 
(July 17, 2008), we provided the public with a 60-day period in which 
to comment on the proposed changes. That comment period ended on 
September 15, 2008. We did not receive any comments.

Corrections

    We are making three minor corrections. First, we have corrected the 
last sentence in 20 CFR 404.502(b)(5) because words were 
unintentionally omitted from the proposed rules. The revised sentence 
clarifies that we do not collect the overpayments at issue under 20 CFR 
404.502(b)(3) from anyone other than the representative payee, but we 
may use any underpayment due to the representative payee to reduce an 
outstanding overpayment. We also corrected the title of 20 CFR 
416.570(b) to use the term ``recipient'' instead of ``beneficiary'' for 
consistency with our rules. Finally, we have amended the language in 20 
CFR 416.570(b)(2) to make clear that we will not collect these 
overpayments from the eligible spouse or the eligible spouse's estate.

Regulatory Procedures

Executive Order 12866, as Amended

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these final rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866, as amended. 
Thus, they were not subject to OMB review.

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 individuals only. Therefore, a regulatory flexibility analysis 
as provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    This rule will impose no additional reporting or recordkeeping 
requirements requiring 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)

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, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI).

    Dated: October 23, 2008.
Michael J. Astrue,
Commissioner of Social Security.

0
For the reasons set forth in the preamble, we are amending subpart F of 
part 404 and subpart E 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 F--[Amended]

0
1. The authority citation for subpart F of part 404 continues to read 
as follows:

    Authority: Secs. 204, 205(a), 702(a)(5), and 1147 of the Social 
Security Act (42 U.S.C. 404, 405(a), 902(a)(5), and 1320b-17); 31 
U.S.C. 3720A.


0
2. Amend Sec.  404.502 by adding paragraphs (a)(3) and (b)(5) to read 
as follows:


Sec.  404.502  Overpayments.

* * * * *
    (a) * * *
    (3) If a representative payee receives a payment on behalf of a 
beneficiary after that beneficiary dies, the representative payee or 
his estate is solely liable for repaying the overpayment. If the 
representative payee is entitled to a monthly benefit or a lump sum 
under title II of the Act at the time we determine that an overpayment 
exists or at any time thereafter, except as provided in paragraphs (c) 
and (d) of this section, we will not pay the monthly benefits or the 
lump sum to the representative payee until the amount of the 
overpayment has been repaid. We will make such adjustments against any 
monthly benefit or lump sum under title II of the Act to which the 
representative payee is entitled whether payable on the basis of such 
representative payee's earnings or the earnings of another individual.
    (b) * * *
    (5) The methods in paragraphs (b)(1) and (b)(2) of this section for 
overpayments owed by a representative payee for payments made after the 
beneficiary's death. We will not recover such overpayments from any 
person other than the individual who was representative payee or his 
estate, but we may recover these overpayments

[[Page 65543]]

from such other person under Sec.  404.503(b).
* * * * *

0
3. Amend Sec.  404.503 by adding a second sentence to paragraph (a) and 
revising paragraph (b) introductory text to read as follows:


Sec.  404.503  Underpayments.

* * * * *
    (a) Individual underpaid is living. * * * However, if we determine 
that the individual to whom an underpayment is due also received an 
overpayment as defined in Sec.  404.501(a) for a different period, we 
will apply any underpayment due the individual to reduce that 
overpayment, unless we have waived recovery of the overpayment under 
the provisions of Sec. Sec.  404.506 through 404.512.
    (b) Individual dies before adjustment of underpayment. If an 
individual who has been underpaid dies before receiving payment or 
negotiating a check or checks representing such payment, we first apply 
any amounts due the deceased individual against any overpayments as 
defined in Sec.  404.501(a) owed by the deceased individual, unless we 
have waived recovery of such overpayment under the provisions of 
Sec. Sec.  404.506 through 404.512. We then will distribute any 
remaining underpayment to the living person (or persons) in the highest 
order of priority as follows:
* * * * *

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart E--[Amended]

0
4. The authority citation for subpart E of part 416 continues to read 
as follows:

    Authority: Secs. 702(a)(5), 1147, 1601, 1602, 1611(c) and (e), 
and 1631(a)-(d) and (g) of the Social Security Act (42 U.S.C. 
902(a)(5), 1320b-17, 1381, 1381a, 1382(c) and (e), and 1383(a)-(d) 
and (g)); 31 U.S.C. 3720A.


0
5. Amend Sec.  416.570 by revising the section heading, redesignating 
the existing text as paragraph (a), adding a heading to redesignated 
paragraph (a), and adding new paragraph (b) to read as follows:


Sec.  416.570  Adjustment.

    (a) General. * * *
    (b) Overpayment made to representative payee after the recipient's 
death. A representative payee or his estate is solely liable for 
repaying an overpayment made to the representative payee on behalf of a 
recipient after the recipient's death. In such case, we will recover 
the overpayment according to paragraph (a) of this section, except 
that:
    (1) We will not adjust any other payment due to the eligible spouse 
of the overpaid representative payee to recover the overpayment, and
    (2) If the overpaid representative payee dies before we complete 
adjustment, we will not seek to recover the overpayment from the 
eligible spouse or the estate of the eligible spouse.

 [FR Doc. E8-26224 Filed 11-3-08; 8:45 am]
BILLING CODE 4191-02-P