Rule2022-12682
Reducing Burden on Families Acting as Representative Payees of Social Security Payments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 13, 2022
Effective
June 13, 2022
Issuing agencies
Social Security Administration
Abstract
Section 102 of the Strengthening Protections for Social Security Beneficiaries Act of 2018 (Strengthening Protections Act) reduced the burden on families by exempting certain representative payees from our annual accounting requirements. We are revising our regulations to incorporate the statutory exemption for certain representative payees from annual accounting.
Full Text
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<title>Federal Register, Volume 87 Issue 113 (Monday, June 13, 2022)</title>
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[Federal Register Volume 87, Number 113 (Monday, June 13, 2022)]
[Rules and Regulations]
[Pages 35651-35654]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12682]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404, 408, and 416
[Docket No. SSA-2021-0046]
RIN 0960-AI52
Reducing Burden on Families Acting as Representative Payees of
Social Security Payments
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: Section 102 of the Strengthening Protections for Social
Security Beneficiaries Act of 2018 (Strengthening Protections Act)
reduced the burden on families by exempting certain representative
payees from our annual accounting requirements. We are revising our
regulations to incorporate the statutory exemption for certain
representative payees from annual accounting.
DATES: This final rule is effective June 13, 2022.
FOR FURTHER INFORMATION CONTACT: Peter Smith, Office of Income Security
Programs, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235-6401, (410) 966-3235. 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 <a href="http://www.socialsecurity.gov">http://www.socialsecurity.gov</a>.
SUPPLEMENTARY INFORMATION:
Background
We make payments to a representative payee for beneficiaries who
are incapable of managing their Social Security benefits, Special
Veterans Benefits, or Supplemental Security Income payments. Generally,
our adult beneficiaries have the right to receive their benefits
directly and manage them independently. However, we may determine that
a beneficiary is unable to manage or direct the management of benefit
payments because of a mental or physical condition, or because of
youth.\1\ In these cases, we appoint a
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representative payee when we believe it will be in the beneficiary's
interest to receive benefits through a representative payee instead of
receiving them directly.\2\
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\1\ 20 CFR 404.2001(b), 408.601(b), 416.601(b) and 42 U.S.C.
405(j)(1)(A)-(j)(2)(A), 1383(a)(2)(A)-(a)(2)(B).
\2\ 20 CFR 404.2001(a), 408.601(a), and 416.601(a).
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When we select a representative payee, our primary concern is to
choose someone who will best serve the beneficiary's interest.\3\ A
representative payee may be an organization, such as a social service
agency, or a person, such as a parent, other relative, or friend of the
beneficiary whom we select to receive and manage benefit payments on
behalf of the beneficiary. It is important for us to select the best
possible representative payee to ensure that the benefits are used in
the best interest of the beneficiary and in accordance with other
responsibilities and requirements discussed in our regulations.\4\
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\3\ 20 CFR 404.2021, 408.621, and 416.621.
\4\ 20 CFR 404.2035, 408.635, 416.635 and, generally, 20 CFR 404
Subpart U.
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Annual Accounting Form
As a result of the decision in Jordan v. Schweiker,\5\ all
representative payees other than State mental hospitals were required
to file with us an annual accounting of their use of beneficiaries'
benefits. Specifically, we required all representative payees to
complete an annual accounting form describing how the representative
payee used the benefits. We also requested the representative payee to
report in detail where the beneficiary lived during the accounting
period, who made the decisions on how benefits were spent or saved, how
much of the benefit payments were saved, and how the savings were
invested.\6\
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\5\ Jordan v. Schweiker, No. 79-994-W, 1983 U.S. Dist. LEXIS
18484 (W.D. Okla. Mar. 17, 1983); see also, id. (order of March 26,
1984) (subsequent history omitted). We have included a copy of the
relevant decisions in Jordan in the rulemaking docket for this rule.
The records are available at <a href="http://regulations.gov">regulations.gov</a> as a supporting and
related material for docket SSA-2021-0046.
\6\ 20 CFR 404.2065, 408.665, and 416.665.
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On April 13, 2018, Congress enacted the Strengthening Protections
Act.\7\ Section 102 of this Act, ``Reducing the Burden on Families,''
amended sections 205(j)(3), 807(h), and 1631(a)(2)(C) of the Social
Security Act to relieve families from the burdens of the accounting
requirement. Under the new statutory provision, representative payees
who are parents or legal guardians living with their child, parents
living with an adult disabled child, and spouses are no longer required
to file an annual report accounting for how they spend the child's or
spouse's benefits. However, these representative payees are still
legally required to use the benefits on behalf of the beneficiary and
according to our rules.\8\
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\7\ Strengthening Protections for Social Security Beneficiaries
Act of 2018, Public Law 115-165, 132 Stat. 1257, available at
<a href="https://www.congress.gov/bill/115th-congress/house-bill/4547">https://www.congress.gov/bill/115th-congress/house-bill/4547</a>.
\8\ Other payees who are not parents, spouses, or State mental
hospitals participating in our onsite review process are still
required to file the annual report.
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Following the passage of the Strengthening Protections Act,\9\ we
modified our practice to exempt from our annual accounting requirements
any representative payee who is:
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\9\ Shortly after enactment of the Strengthening Protections
Act, the Department of Justice filed a motion for partial relief
from the court's prior orders in Jordan to allow for implementation
of the accounting exemption. On May 17, 2018, the Court granted the
motion and exempted ``from the annual accounting requirement any
representative payee who is either (1) a parent, or other individual
who is a legal guardian of, a minor child beneficiary who primarily
resides in the same household, (2) a parent of an adult disabled
beneficiary who primarily resides in the same household or (3) the
spouse of a beneficiary.'' See Jordan v. Commissioner of Social
Security, No. 79-994-W, slip op. at 2 (W.D. Okla. May 17, 2018). We
have included a copy of this decision in the rulemaking record.
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<bullet> A natural or adoptive parent of a minor child entitled to
title II benefits or eligible for title XVI payments, or both, who
primarily resides in the same household as the beneficiary;
<bullet> A legal guardian of a minor child entitled to title II
benefits or eligible for title XVI payments, or both, who primarily
resides in the same household as the beneficiary;
<bullet> A natural or adoptive parent of a disabled individual (as
defined in sections 223(d) or 1614(a)(3) of the Act) entitled to title
II benefits or eligible for title XVI payments, or both, who primarily
resides in the same household as the beneficiary; or
<bullet> The spouse of an individual entitled to title II benefits
or eligible for title VIII or title XVI payments.
Explanation of Changes
To ensure our regulations reflect the provisions of section 102 of
the Strengthening Protections Act, we are revising 20 CFR 404.2065,
408.665, and 416.665 to remove the annual accounting requirement for
exempt representative payees. While there are no substantive changes
aside from the exemption for certain representative payees, the
revisions involve some restructuring of the regulations. We are making
no other changes to our regulations.
Regulatory Procedures
We follow the Administrative Procedure Act (APA) rulemaking
procedures specified in 5 U.S.C. 553 when we develop regulations.
Section 702(a)(5) of the Social Security Act, 42 U.S.C. 902(A)(5).
Generally, the APA requires that an agency provide prior notice and
opportunity for public comment before issuing a final rule. The APA
provides exceptions to the notice and public comment procedures when an
agency finds there is good cause for dispensing with such procedures
because they are impracticable, unnecessary, or contrary to the public
interest.
We find that there is good cause under 5 U.S.C. 553(b)(B) to issue
this regulatory change as a final rule without prior public comment. We
find that prior public comment is unnecessary because this final rule
merely makes our regulations (20 CFR 404.2065, 408.665, and 416.665)
consistent with the provisions of the Strengthening Protections Act,
which exempts certain representative payees from the requirement of
submitting an annual accounting report. Because we are only making our
regulations consistent with the Strengthening Protections Act, and we
are making no other changes, we find that prior public comment is
unnecessary and there is good cause to issue this final rule without
prior notice and public comment.
In addition, we find that there is good cause for dispensing with
the 30-day delay in the effective date of this final rule as provided
by 5 U.S.C. 553(d)(3). As we explained above, this final rule merely
makes our regulations consistent with the Strengthening Protections
Act, which is already in effect. Therefore, we find that it is
unnecessary to delay the effective date of the final rule.
Executive Order 12866, as Supplemented by Executive Order 13563
We consulted with the Office of Management and Budget (OMB) and
determined that this final rule does not meet the requirements for a
significant regulatory action under Executive Order (E.O.) 12866, as
supplemented by E.O. 13563. Therefore, OMB did not review it.
We also determined that this final rule meets the plain language
requirement of E.O. 12866.
Executive Order 13132 (Federalism)
We analyzed this final rule in accordance with the principles and
criteria established by E.O. 13132 and determined that the final rule
will not have sufficient Federalism implications to warrant the
preparation of a Federalism assessment. We also determined that this
final rule would not preempt any State law or State
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regulation or affect the States' abilities to discharge traditional
State governmental functions.
Regulatory Flexibility Act
We certify that this final rule will not have a significant
economic impact on a substantial number of small entities because it
affects individuals only. Therefore, the Regulatory Flexibility Act, as
amended, does not require us to prepare a regulatory flexibility
analysis.
Paperwork Reduction Act
While this final rule exempts certain representative payees from
the annual accounting requirement, and will affect the Old-Age,
Survivors, and Disability Insurance (OASDI) and Supplemental Security
Income (SSI) programs, the final rule does not require any updates or
changes to any of our forms.
We use the following forms to collect representative payee
information during Title II & Title XVI Claims:
<bullet> SSA-637, SSA-639, Site Review Questionnaire for Volume Payees,
Fee-For-Service Payees & Beneficiary Interview Form (0960-0633)
<bullet> SSA-445, Application to Collect a Fee for Payee Services
(0960-0719)
<bullet> SSA-11-BK, Request To Be Selected As Payee (0960-0014)
<bullet> SSA-623-F6, SSA-6230-F6, SSA-6234-F6, Representative Payee
Report (Adult, Child, and Organizational Representative Payee) (0960-
0068)
<bullet> SSA-624-F5, Representative Payee Evaluation Report (0960-0069)
<bullet> SSA-6233-BK, Representative Payee Report of Benefits and
Dedicated Account (0960-0576)
<bullet> SSA-1696-U4, Appointment of Representative (0960-0527)
<bullet> SSA-4547 Advance Designation of Representative Payee (0960-
0814)
<bullet> SSA-2032-BK, Request for Waiver of Special Veterans Benefits
(SVB)
Overpayment Recovery or Change in Repayment Rate (0960-0698)
This final rule does not require any changes to the forms listed
above, nor will it affect public reporting burdens. Therefore, this
final rule does not require OMB approval under the Paperwork Reduction
Act.
(Catalog of Federal Domestic Assistance Program Nos. 9601, Social
Security--Disability Insurance, 96.002, Social Security--Retirement
Insurance; 96.004, Social Security--Survivors Insurance; and 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 408
Administrative practice and procedure; Reporting and recordkeeping
requirements; Social security; Supplemental Security Income (SSI),
Veterans.
20 CFR Part 416
Administrative practice and procedure; Reporting and recordkeeping
requirements; Social security; Supplemental Security Income (SSI).
The Acting Commissioner of the Social Security Administration,
Kilolo Kijakazi, Ph.D., M.S.W., having reviewed and approved this
document, is delegating the authority to electronically sign this
document to Faye I. Lipsky, who is the primary Federal Register Liaison
for SSA, for purposes of publication in the Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional
Affairs, Social Security Administration.
For the reasons stated in the preamble, we amend 20 CFR parts 404,
408, and 416 as set forth below:
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
Subpart U--Representative Payment
0
1. The authority citation for subpart U of part 404 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. Revise Sec. 404.2065 to read as follows:
Sec. 404.2065 How does your representative payee account for the use
of benefits?
(a) Your representative payee must account for the use of your
benefits. We require written reports from your representative payee at
least once a year (except as provided in paragraph (b) of this section
and for certain State institutions that participate in a separate
onsite review program).
(b) Your representative payee is exempt from the accounting
requirement when your representative payee is:
(1) A natural or adoptive parent of a minor child entitled to title
II benefits who primarily resides in the same household as the
beneficiary;
(2) A legal guardian of a minor child entitled to title II benefits
who primarily resides in the same household as the beneficiary;
(3) A natural or adoptive parent of a disabled individual (as
defined in section 223(d) of the Act) entitled to title II benefits who
primarily resides in the same household as the beneficiary; or
(4) The spouse of an individual entitled to title II benefits.
(c) We may verify how your representative payee used your benefits.
Your representative payee should keep records of how benefits were used
in order to make accounting reports and must make those records
available upon our request. If your representative payee fails to
provide an annual accounting of benefits or other required reports, we
may require your payee to receive your benefits in person at the local
Social Security field office or a United States Government facility
that we designate serving the area in which you reside. The decision to
have your representative payee receive your benefits in person may be
based on a variety of reasons. Some of these reasons may include the
payee's history of past performance or our past difficulty in
contacting the payee. We may ask your representative payee to give us
the following information:
(1) Where you lived during the accounting period;
(2) Who made the decisions on how your benefits were spent or
saved;
(3) How your benefit payments were used; and
(4) How much of your benefit payments were saved and how the
savings were invested.
PART 408--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS (1950-
)
Subpart F--Representative Payment
0
3. The authority citation for subpart F of part 408 continues to read
as follows:
Authority: Secs. 205(j)(1)(C), 702(a)(5), 807, and 810 of the
Social Security Act (42 U.S.C. 405(j)(1)(C), 902(a)(5), 1007, and
1010).
0
4. Revise Sec. 408.665 to read as follows:
Sec. 408.665 How does your representative payee account for the use
of your SVB payments?
(a) Your representative payee must account for the use of your
benefits. We require written reports from your representative payee at
least once a year.
(b) Your representative payee is exempt from the accounting
requirement when your representative payee is the spouse of an
individual eligible for SVB payments.
(c) We may verify how your representative payee used your benefits.
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Your representative payee should keep records of how benefits were used
in order to provide accounting reports and must make those records
available upon our request. If your representative payee fails to
provide an annual accounting of benefits or other required report, we
may require your payee to appear in person at the local Social Security
field office or a United States Government facility that we designate
serving the area in which you reside. The decision to have your
representative payee receive your benefits in person may be based on a
variety of reasons. Some of these reasons may include the payee's
history of past performance or our past difficulty in contacting the
payee. We may ask your representative payee to give us the following
information:
(1) Where you lived during the accounting period;
(2) Who made the decisions on how your benefits were spent or
saved;
(3) How your benefit payments were used; and
(4) How much of your benefit payments were saved and how the
savings were invested.
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED (1950- )
Subpart F--Representative Payment
0
5. The authority citation for subpart F of part 416 continues to read
as follows:
Authority: Secs. 205(j)(1)(C), 702(a)(5), 1631(a)(2) and (d)(1)
of the Social Security Act (42 U.S.C. 405(j)(1)(C), 902(a)(5),
1383(a)(2) and (d)(1)).
0
6. Revise Sec. 416.665 to read as follows:
Sec. 416.665 How does your representative payee account for the use
of benefits?
(a) Your representative payee must account for the use of your
benefits. We require written reports from your representative payee at
least once a year (except as provided in paragraph (b) of this section
and for certain State institutions that participate in a separate
onsite review program).
(b) Your representative payee is exempt from the accounting
requirement when your representative payee is:
(1) A natural or adoptive parent of a minor child eligible for
title XVI benefits who primarily resides in the same household as the
beneficiary;
(2) A legal guardian of a minor child eligible for title XVI
benefits who primarily resides in the same household as the
beneficiary;
(3) A natural or adoptive parent of a disabled individual (as
defined in section 1614(a)(3) of the Act) eligible for title XVI
benefits who primarily resides in the same household as the
beneficiary; or
(4) The spouse of an individual eligible for title XVI benefits.
(c) We may verify how your representative payee used your benefits.
Your representative payee should keep records of how benefits were used
in order to make accounting reports and must make those records
available upon our request. If your representative payee fails to
provide an annual accounting of benefits or other required reports, we
may require your payee to receive your benefits in person at the local
Social Security field office or a United States Government facility
that we designate serving the area in which you reside. The decision to
have your representative payee receive your benefits in person may be
based on a variety of reasons. Some of these reasons may include the
payee's history of past performance or our past difficulty in
contacting the payee. We may ask your representative payee to give us
the following information:
(1) Where you lived during the accounting period;
(2) Who made the decisions on how your benefits were spent or
saved;
(3) How your benefit payments were used; and
(4) How much of your benefit payments were saved and how the
savings were invested.
[FR Doc. 2022-12682 Filed 6-10-22; 8:45 am]
BILLING CODE 4191-02-P
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