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[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Rules and Regulations]
[Pages 2185-2186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-620]

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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

[Docket No. SSA-2006-0087]
RIN 0960-AG42

Title II Cost of Living Increases in Primary Insurance Amounts

AGENCY: Social Security Administration.

ACTION: Final rules.

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SUMMARY: We are revising our rules that deal with automatic cost-of-
living increases to primary insurance amounts under title II of the 
Social Security Act (the Act). The revision is necessary because, 
beginning with the Consumer Price Index (CPI) for January 2007, the 
Bureau of Labor Statistics will publish the CPI to three decimal 
places. The CPI is currently published to one decimal place as is now 
reflected in our regulations. With this revision, our rules will 
conform to the change in the reporting of the CPI.

DATES: These regulations are effective January 18, 2007.

FOR FURTHER INFORMATION CONTACT: Jerry Strauss, Social Insurance 
Specialist, Office of Income Security Programs, Social Security 
Administration, 107 Altmeyer Building, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 965-7930 or TTY (410) 966-5609. 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 Web site, Social Security Online, at http://www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION: Electronic Version: The electronic file of 
this document is available on the date of publication in the Federal 
Register at http://www.gpoaccess.gov/fr/index.html.

Background

    The Social Security Act requires annual increases in Social 
Security benefits to keep up with increases in the cost-of-living as 
measured by the CPI. In order to provide more accurate information 
regarding increases in the CPI, the Bureau of Labor Statistics will 
begin publishing the CPI to the third, rather than the first, decimal 
place for January 2007. The effect of this change on benefit amounts is 
negligible. For additional information on cost-of-living increases and 
the types of benefits affected, see Sec. Sec.  404.270 and 404.271.

Explanation of Changes

    We have revised Sec.  404.275(a) by replacing the current language 
stating that we will round the calculations of the CPI average to the 
nearest 0.1 with language stating that we will round the CPI average 
``to the same number of decimal places as the published CPI figures.'' 
In addition, we added language stating that when a different number of 
decimal places is used for the beginning and ending quarters, we will 
use the number for the ending quarter. Therefore, since the CPI is now 
published by the Bureau of Labor Statistics to the third decimal place, 
rather than the first, our computation of quarterly average CPI's will 
be consistent with such publication.

Regulatory Procedures

    Pursuant to section 702(a)(5) of the Social Security Act, 42 U.S.C. 
902(a)(5), as amended by section 102 of Public Law 103-296, SSA follows 
the Administrative Procedure Act (APA) rulemaking procedures specified 
in 5 U.S.C. 553 in the development of its regulations. The APA provides 
exceptions to its notice and public comment procedures when an agency 
finds there is good cause for dispensing with such procedures on the 
basis that they are impracticable, unnecessary, or contrary to the 
public interest.
    In the case of these final rules, we have determined that, under 5 
U.S.C. 553(b)(B), good cause exists for dispensing with the notice and 
public comment procedures in this case because these regulations merely 
conform our rules to reflect the way the Bureau of Labor Statistics now 
publishes the CPI. Also, these

[[Page 2186]]

regulations contain no substantive changes of interpretation. 
Therefore, opportunity for prior comment is unnecessary, and we are 
issuing these regulations as final rules.
    In addition, we find good cause for dispensing with the 30-day 
delay in the effective date of a substantive rule, provided for by 5 
U.S.C. 553(d), since we are making no substantive changes in the cost-
of-living increase provisions. Without this change, however, our rules 
will conflict with the computation of the CPI as reported by the Bureau 
of Labor Statistics.

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866, as amended 
by Executive Order 13258. Thus, they were not subject to OMB review. We 
have also determined that these rules meet the plain language 
requirement of Executive Order 12866, as amended by Executive Order 
13258.

Regulatory Flexibility Act

    We certify that these regulations will not have a significant 
economic impact on a substantial number of small entities. Therefore, a 
regulatory flexibility analysis as provided in the Regulatory 
Flexibility Act, as amended, is not required.

Paperwork Reduction Act

    These final regulations 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)

List of Subjects in 20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, 
Old-age, Survivors and Disability Insurance, Reporting and 
recordkeeping requirements, Social Security.

    Dated: January 10, 2007.
Jo Anne B. Barnhart,
Commissioner of Social Security.

0
For the reasons set forth in the preamble, we are amending subpart C of 
part 404 of title 20 of the Code of Federal Regulations as follows:

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950-)

Subpart C--[Amended]

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

    Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the 
Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

0
2. Section 404.275 (a) is revised to read as follows:

Sec.  404.275  How is an automatic cost-of-living increase calculated?

    (a) Increase based on the CPI. We compute the average of the CPI 
for the quarters that begin and end the measuring period by adding the 
three monthly CPI figures, dividing the total by three, and rounding 
the result to the same number of decimal places as the published CPI 
figures. If the number of decimal places in the published CPI values 
differs between those used for the beginning and ending quarters, we 
use the number for the ending quarter. If the average for the ending 
quarter is higher than the average for the beginning quarter, we divide 
the average for the ending quarter by the average of the beginning 
quarter to determine the percentage increase in the CPI over the 
measuring period.
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[FR Doc. E7-620 Filed 1-17-07; 8:45 am]
BILLING CODE 4191-02-P
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