Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices 63663

6 17 CFR 200.30–3(a)(12).

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC does not believe that the

proposed rule change will have an

impact or impose a burden on

competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Investment Company Institute’s

Enhancement Subcommittee of its

Broker/Dealer Committee was advised

of and concurs in the modifications to

NSCC’s rules. No written comments

relating to the proposed rule change

have been solicited or received. NSCC

will notify the Commission of any

written comments received by NSCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

ninety days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

(A) by order approve such proposed

rule change or

(B) institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. Copies of

the submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to File No. SR–NSCC–00–12 and

should be submitted by November 14,

2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27237 Filed 10–23–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Office of the Commissioner

Cost-of-Living Increase and Other

Determinations for the Year 2001

AGENCY: Social Security Administration.

ACTION: Notice.

SUMMARY: The Commissioner has

determined—

(1) A 3.5 percent cost-of-living

increase in Social Security benefits

under title II of the Social Security Act

(the Act), effective for December 2000;

(2) An increase in the Federal

Supplemental Security Income (SSI)

monthly benefit amounts under title

XVI of the Act for 2001 to $530 for an

eligible individual, $796 for an eligible

individual with an eligible spouse, and

$266 for an essential person;

(3) The national average wage index

for 1999 to be $30,469.84;

(4) The Old-Age, Survivors, and

Disability Insurance (OASDI)

contribution and benefit base to be

$80,400 for remuneration paid in 2001

and self-employment income earned in

taxable years beginning in 2001;

(5) For beneficiaries under age 65, the

monthly exempt amount under the

Social Security retirement earnings test

for taxable years ending in calendar year

2001 to be $890;

(6) The dollar amounts (‘‘bend

points’’) used in the benefit formula for

workers who become eligible for

benefits in 2001 to be $561 and $3,381;

(7) The dollar amounts (‘‘bend

points’’) used in the formula for

computing maximum family benefits for

workers who become eligible for

benefits in 2001 to be $717, $1,034, and

$1,349;

(8) The amount of earnings a person

must have to be credited with a quarter

of coverage in 2001 to be $830;

(9) The ‘‘old-law’’ contribution and

benefit base to be $59,700 for 2001;

(10) The monthly amount of

substantial gainful activity applicable to

statutorily blind individuals in 2001 to

be $1,240;

(11) Coverage thresholds for 2001 to

be $1,300 for domestic workers and

$1,100 for election workers; and

(12) The OASDI fund ratio to be 215.4

percent for 2000.

FOR FURTHER INFORMATION CONTACT:

Jeffrey L. Kunkel, Office of the Chief

Actuary, Social Security

Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410)

965–3013. For information on eligibility

or claiming benefits, call 1–800–772–

1213. Information relating to this

announcement is available on the

Internet at

http://www.ssa.gov/OACT/COLA/

index.html.

SUPPLEMENTARY INFORMATION: In

accordance with the Act, the

Commissioner must publish within 45

days after the close of the third calendar

quarter of 2000 the benefit increase

percentage and the revised table of

‘‘special minimum’’ benefits (section

215(i)(2)(D)). Also, the Commissioner

must publish on or before November 1

the national average wage index for

1999 (section 215(a)(1)(D)), the OASDI

fund ratio for 2000 (section

215(i)(2)(C)(ii)), the OASDI contribution

and benefit base for 2001 (section

230(a)), the amount of earnings required

to be credited with a quarter of coverage

in 2001 (section 213(d)(2)), the monthly

exempt amounts under the Social

Security retirement earnings test for

2001 (section 203(f)(8)(A)), the formula

for computing a primary insurance

amount for workers who first become

eligible for benefits or die in 2001

(section 215(a)(1)(D)), and the formula

for computing the maximum amount of

benefits payable to the family of a

worker who first becomes eligible for

old-age benefits or dies in 2001 (section

203(a)(2)(C)).

Cost-of-Living Increases

General. The cost-of-living increase is

3.5 percent for benefits under titles II

and XVI of the Act. Under title II,

OASDI benefits will increase by 3.5

percent beginning with December 2000

benefits, payable in January 2001. This

increase is based on the authority

contained in section 215(i) of the Act

(42 U.S.C. 415(i)).

Under title XVI, Federal SSI payment

levels will also increase by 3.5 percent

effective for payments made for the

month of January 2001 but paid on

December 29, 2000. This is based on the

authority contained in section 1617 of

the Act (42 U.S.C. 1382f).

Automatic Benefit Increase

Computation. Under section 215(i) of

the Act, the third calendar quarter of

2000 is a cost-of-living computation

63664 Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices

quarter for all the purposes of the Act.

The Commissioner is, therefore,

required to increase benefits, effective

with December 2000, for individuals

entitled under section 227 or 228 of the

Act, to increase primary insurance

amounts of all other individuals entitled

under title II of the Act, and to increase

maximum benefits payable to a family.

For December 2000, the benefit increase

is the percentage increase in the

Consumer Price Index for Urban Wage

Earners and Clerical Workers from the

third quarter of 1999 through the third

quarter of 2000.

Section 215(i)(1) of the Act provides

that the Consumer Price Index for a

cost-of-living computation quarter shall

be the arithmetic mean of this index for

the 3 months in that quarter. We round

the arithmetic mean, if necessary, to the

nearest 0.1. The Department of Labor’s

Consumer Price Index for Urban Wage

Earners and Clerical Workers for each

month in the quarter ending September

30, 1999, is: for July 1999, 163.3; for

August 1999, 163.8; and for September

1999, 164.7. The arithmetic mean for

this calendar quarter is 163.9. The

corresponding Consumer Price Index for

each month in the quarter ending

September 30, 2000, is: for July 2000,

169.4; for August 2000, 169.3; and for

September 2000, 170.4. The arithmetic

mean for this calendar quarter is 169.7.

Thus, because the Consumer Price Index

for the calendar quarter ending

September 30, 2000, exceeds that for the

calendar quarter ending September 30,

1999 by 3.5 percent, a cost-of-living

benefit increase of 3.5 percent is

effective for benefits under title II of the

Act beginning December 2000.

Title II Benefit Amounts. In

accordance with section 215(i) of the

Act, in the case of workers and family

members for whom eligibility for

benefits (i.e., the worker’s attainment of

age 62, or disability or death before age

62) occurred before 2001, benefits will

increase by 3.5 percent beginning with

benefits for December 2000 which are

payable in January 2001. In the case of

first eligibility after 2000, the 3.5

percent increase will not apply.

For eligibility after 1978, benefits are

generally determined by a benefit

formula provided by the Social Security

Amendments of 1977 (Pub. L. 95–216),

as described later in this notice.

For eligibility before 1979, we

determine benefits by means of a benefit

table. You may obtain a copy of this

table by writing to: Social Security

Administration, Office of Public

Inquiries, 4100 Annex, Baltimore, MD

21235. The table is also available on the

Internet at address

http://www.ssa.gov/OACT/ProgData/

tableForm.html.

Section 215(i)(2)(D) of the Act

requires that, when the Commissioner

determines an automatic increase in

Social Security benefits, the

Commissioner shall publish in the

Federal Register a revision of the range

of the primary insurance amounts and

corresponding maximum family benefits

based on the dollar amount and other

provisions described in section

215(a)(1)(C)(i). We refer to these benefits

as ‘‘special minimum’’ benefits. These

benefits are payable to certain

individuals with long periods of

relatively low earnings. To qualify for

such benefits, an individual must have

at least 11 ‘‘years of coverage.’’ To earn

a year of coverage for purposes of the

special minimum, a person must earn at

least a certain proportion (25 percent for

years before 1991, and 15 percent for

years after 1990) of the ‘‘old-law’’

contribution and benefit base. In

accordance with section 215(a)(1)(C)(i),

the table below shows the revised range

of primary insurance amounts and

corresponding maximum family benefit

amounts after the 3.5 percent benefit

increase.

SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2000

Number of years

of coverage

Primary insurance

amount

Maximum

family

benefit

11 ...................... $29.40 $44.70

12 ...................... 59.40 89.80

13 ...................... 89.70 134.90

14 ...................... 119.50 179.80

15 ...................... 149.50 224.50

16 ...................... 179.60 270.20

17 ...................... 209.70 315.40

18 ...................... 239.90 360.30

19 ...................... 269.90 405.50

20 ...................... 299.80 450.50

21 ...................... 330.20 495.90

22 ...................... 360.00 540.80

23 ...................... 390.40 586.60

24 ...................... 420.50 631.50

25 ...................... 450.50 676.10

26 ...................... 480.80 722.10

27 ...................... 510.70 766.90

28 ...................... 540.70 811.80

29 ...................... 570.80 857.10

30 ...................... 600.90 902.00

Title XVI Benefit Amounts. In

accordance with section 1617 of the Act,

Federal SSI benefit amounts for the

aged, blind, and disabled will increase

by 3.5 percent effective January 2001.

For 2000, we derived the monthly

benefit amounts for an eligible

individual, an eligible individual with

an eligible spouse, and for an essential

person—$512, $769, and $257,

respectively—from corresponding

yearly unrounded Federal SSI benefit

amounts of $6,154.26, $9,230.35, and

$3,084.18. For 2001, these yearly

unrounded amounts increase by 3.5

percent to $6,369.66, $9,553.41, and

$3,192.13, respectively. Each of these

resulting amounts must be rounded,

when not a multiple of $12, to the next

lower multiple of $12. Accordingly, the

corresponding annual amounts,

effective for 2001, are $6,360, $9,552,

and $3,192. Dividing the yearly amounts

by 12 gives the corresponding monthly

amounts for 2001—$530, $796, and

$266, respectively. We reduce the

monthly amount by subtracting monthly

countable income. In the case of an

eligible individual with an eligible

spouse, we equally divide the amount

payable between the two spouses.

Fee for Services Performed as a

Representative Payee. Sections

205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the

Act permit a qualified organization to

collect from an individual a monthly fee

for expenses incurred in providing

services performed as such individual’s

representative payee. Currently the fee

is limited to the lesser of: (1) 10 percent

of the monthly benefit involved; or (2)

$ 28 per month ($54 per month in any

case in which the individual is entitled

to disability benefits and the

Commissioner has determined that

payment to the representative payee

would serve the interest of the

individual because the individual has

an alcoholism or drug addiction

condition and is incapable of managing

such benefits). The dollar fee limits are

subject to increase by the automatic

cost-of-living increase, with the

resulting amounts rounded to the

nearest whole dollar amount. Thus we

will increase the current amounts by 3.5

percent to $29 and $56 for 2001.

National Average Wage Index for 1999

General. Under various provisions of

the Act several amounts increase

automatically with annual increases in

the national average wage index. The

amounts are: (1) The OASDI

contribution and benefit base; (2) the

retirement test exempt amounts; (3) the

dollar amounts, or ‘‘bend points,’’ in the

primary insurance amount and

maximum family benefit formulas; (4)

the amount of earnings required for a

worker to be credited with a quarter of

coverage; (5) the ‘‘old-law’’ contribution

and benefit base (as determined under

section 230 of the Act as in effect before

the 1977 amendments); (6) the

substantial gainful activity amount

applicable to statutorily blind

individuals; and (7) the coverage

Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices 63665

threshold for election officials and

election workers. Also, section 3121(x)

of the Internal Revenue Code requires

that the domestic employee coverage

threshold be based on changes in the

national average wage index.

Computation. The determination of

the national average wage index for

calendar year 1999 is based on the 1998

national average wage index of

$28,861.44 announced in the Federal

Register on October 25, 1999 (64 FR

57506), along with the percentage

increase in average wages from 1998 to

1999 measured by annual wage data

tabulated by the Social Security

Administration (SSA). The wage data

tabulated by SSA include contributions

to deferred compensation plans, as

required by section 209(k) of the Act.

The average amounts of wages

calculated directly from these data were

$27,686.75 and $29,229.69 for 1998 and

1999, respectively. To determine the

national average wage index for 1999 at

a level that is consistent with the

national average wage indexing series

for 1951 through 1977 (published

December 29, 1978, at 43 FR 61016), we

multiply the 1998 national average wage

index of $28,861.44 by the percentage

increase in average wages from 1998 to

1999 (based on SSA-tabulated wage

data) as follows (with the result rounded

to the nearest cent):

Amount. The national average wage

index for 1999 is $28,861.44 times

$29,229.69 divided by $27,686.75,

which equals $30,469.84. Therefore, the

national average wage index for

calendar year 1999 is $30,469.84.

OASDI Contribution and Benefit Base

General. The OASDI contribution and

benefit base is $80,400 for remuneration

paid in 2001 and self-employment

income earned in taxable years

beginning in 2001.

The OASDI contribution and benefit

base serves two purposes:

(a) It is the maximum annual amount

of earnings on which OASDI taxes are

paid. The OASDI tax rate for

remuneration paid in 2001 is 6.2

percent for employees and employers,

each. The OASDI tax rate for selfemployment income earned in taxable

years beginning in 2001 is 12.4 percent.

(The Hospital Insurance tax is due on

remuneration, without limitation, paid

in 2001, at the rate of 1.45 percent for

employees and employers, each, and on

self-employment income earned in

taxable years beginning in 2001, at the

rate of 2.9 percent.)

(b) It is the maximum annual amount

used in determining a person’s OASDI

benefits.

Computation. Section 230(b) of the

Act provides the formula used to

determine the OASDI contribution and

benefit base. Under the formula, the

base for 2001 shall be the larger of: (1)

The 1994 base of $60,600 multiplied by

the ratio of the national average wage

index for 1999 to that for 1992; or (2) the

current base ($76,200). If the resulting

amount is not a multiple of $300, it

shall be rounded to the nearest multiple

of $300.

Amount. The ratio of the national

average wage index for 1999, $30,469.84

as determined above, compared to that

for 1992, $22,935.42, is 1.3285059.

Multiplying the 1994 OASDI

contribution and benefit base amount of

$60,600 by the ratio of 1.3285059

produces the amount of $80,507.46

which rounds to $80,400. Because

$80,400 exceeds the current base

amount of $76,200, the OASDI

contribution and benefit base is $80,400

for 2001.

Retirement Earnings Test Exempt

Amounts

General. We withhold Social Security

benefits when a beneficiary under the

normal retirement age (NRA) has

earnings in excess of the applicable

retirement earnings test exempt amount.

(NRA is the age at which the benefit,

before rounding, is equal to the worker’s

primary insurance amount. The NRA is

age 65 for those born before 1938, and

it will gradually increase to age 67.) For

2001, NRA is age 65. From 1978 through

1999, when the retirement earnings test

applied to individuals beyond the NRA,

higher exempt amounts applied to

beneficiaries aged 65 to 69 compared to

those under age 65. Under Pub. L. 106–

182, the ‘‘Senior Citizens’’ Freedom to

Work Act of 2000,’’ which ended the

retirement earnings test for beneficiaries

who have attained NRA, these higher

exempt amounts still apply in the year

in which a person attains his/her NRA,

but only for months prior to such

attainment. Section 203(f)(8)(B) of the

Act, as amended by section 102 of Pub.

L. 104–121, provides formulas for

determining the monthly exempt

amounts. The amendment set the higher

annual exempt amount to $25,000 for

2001 and $30,000 for 2002. After 2002,

the higher exempt amount will increase

under the applicable formula. The

corresponding monthly exempt amounts

are exactly one-twelfth of the annual

amounts.

For beneficiaries attaining NRA in the

year, we withhold $1 in benefits for

every $3 of earnings in excess of the

annual exempt amount for months prior

to such attainment. For all other

beneficiaries under NRA, we withhold

$1 in benefits for every $2 of earnings

in excess of the annual exempt amount.

Computation. Under the formula

applicable to beneficiaries under the

NRA, the monthly exempt amount for

2001 shall be the larger of: (1) The 1994

monthly exempt amount multiplied by

the ratio of the national average wage

index for 1999 to that for 1992; or (2) the

2000 monthly exempt amount ($840). If

the resulting amount is not a multiple

of $10, it shall be rounded to the nearest

multiple of $10.

Exempt Amount for Beneficiaries

Under NRA. The ratio of the national

average wage index for 1999,

$30,469.84, compared to that for 1992,

$22,935.42, is 1.3285059. Multiplying

the 1994 retirement earnings test

monthly exempt amount of $670 by the

ratio 1.3285059 produces the amount of

$890.10. We round this to $890. Because

$890 is larger than the corresponding

current exempt amount of $840, the

retirement earnings test monthly exempt

amount for beneficiaries under NRA is

$890 for 2001. The corresponding

retirement earnings test annual exempt

amount for these beneficiaries is

$10,680.

Computing Benefits After 1978

General. The Social Security

Amendments of 1977 provided a

method for computing benefits which

generally applies when a worker first

becomes eligible for benefits after 1978.

This method uses the worker’s ‘‘average

indexed monthly earnings’’ to compute

the primary insurance amount. We

adjust the computation formula each

year to reflect changes in general wage

levels, as measured by the national

average wage index.

We also adjust, or ‘‘index,’’ a worker’s

earnings to reflect the change in general

wage levels that occurred during the

worker’s years of employment. Such

indexation ensures that a worker’s

future benefits reflect the general rise in

the standard of living that occurs during

his or her working lifetime. To compute

the average indexed monthly earnings,

we first determine the needed number

of years of earnings. Then we select that

number of years with the highest

indexed earnings, add the indexed

earnings, and divide the total amount by

the total number of months in those

years. We then round the resulting

average amount down to the next lower

dollar amount. The result is the average

indexed monthly earnings.

For example, to compute the average

indexed monthly earnings for a worker

attaining age 62, becoming disabled

before age 62, or dying before attaining

age 62, in 2001, we divide the national

average wage index for 1999,

63666 Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices

$30,469.84, by the national average

wage index for each year prior to 1999

in which the worker had earnings. Then

we multiply the actual wages and selfemployment income, as defined in

section 211(b) of the Act and credited

for each year, by the corresponding ratio

to obtain the worker’s indexed earnings

for each year before 1999. We consider

any earnings in 1999 or later at face

value, without indexing. We then

compute the average indexed monthly

earnings for determining the worker’s

primary insurance amount for 2001.

Computing the Primary Insurance

Amount. The primary insurance amount

is the sum of three separate percentages

of portions of the average indexed

monthly earnings. In 1979 (the first year

the formula was in effect), these

portions were the first $180, the amount

between $180 and $1,085, and the

amount over $1,085. We call the dollar

amounts in the formula governing the

portions of the average indexed monthly

earnings the ‘‘bend points’’ of the

formula. Thus, the bend points for 1979

were $180 and $1,085.

To obtain the bend points for 2001,

we multiply the corresponding 1979

bend-point amounts by the ratio

between the national average wage

index for 1999, $30,469.84, and for

1977, $9,779.44. We then round these

results to the nearest dollar. For 2001,

the ratio is 3.1157040. Multiplying the

1979 amounts of $180 and $1,085 by

3.1157040 produces the amounts of

$560.83 and $3,380.54. We round these

to $561 and $3,381. Accordingly, the

portions of the average indexed monthly

earnings to be used in 2001 are the first

$561, the amount between $561 and

$3,381, and the amount over $3,381.

Consequently, for individuals who

first become eligible for old-age

insurance benefits or disability

insurance benefits in 2001, or who die

in 2001 before becoming eligible for

benefits, their primary insurance

amount will be the sum of:

(a) 90 percent of the first $561 of their

average indexed monthly earnings, plus

(b) 32 percent of their average indexed

monthly earnings over $561 and

through $3,381, plus

(c) 15 percent of their average indexed

monthly earnings over $3,381.

We round this amount to the next

lower multiple of $.10 if it is not already

a multiple of $.10. This formula and the

rounding adjustment described above

are contained in section 215(a) of the

Act (42 U.S.C. 415(a)).

Maximum Benefits Payable to a Family

General. The 1977 amendments

continued the long established policy of

limiting the total monthly benefits that

a worker’s family may receive based on

his or her primary insurance amount.

Those amendments also continued the

then existing relationship between

maximum family benefits and primary

insurance amounts but did change the

method of computing the maximum

amount of benefits that may be paid to

a worker’s family. The Social Security

Disability Amendments of 1980 (Pub. L.

96–265) established a formula for

computing the maximum benefits

payable to the family of a disabled

worker. This formula applies to the

family benefits of workers who first

become entitled to disability insurance

benefits after June 30, 1980, and who

first become eligible for these benefits

after 1978. For disabled workers

initially entitled to disability benefits

before July 1980, or whose disability

began before 1979, we compute the

family maximum payable the same as

the old-age and survivor family

maximum.

Computing the Old-Age and Survivor

Family Maximum. The formula used to

compute the family maximum is similar

to that used to compute the primary

insurance amount. It involves

computing the sum of four separate

percentages of portions of the worker’s

primary insurance amount. In 1979,

these portions were the first $230, the

amount between $230 and $332, the

amount between $332 and $433, and the

amount over $433. We refer to such

dollar amounts in the formula as the

‘‘bend points’’ of the family-maximum

formula.

To obtain the bend points for 2001,

we multiply the corresponding 1979

bend-point amounts by the ratio

between the national average wage

index for 1999, $30,469.84, and the

average for 1977, $9,779.44. Then we

round this amount to the nearest dollar.

For 2001, the ratio is 3.1157040.

Multiplying the amounts of $230, $332,

and $433 by 3.1157040 produces the

amounts of $716.61, $1,034.41, and

$1,349.10. We round these amounts to

$717, $1,034, and $1,349. Accordingly,

the portions of the primary insurance

amounts to be used in 2001 are the first

$717, the amount between $717 and

$1,034, the amount between $1,034 and

$1,349, and the amount over $1,349.

Consequently, for the family of a

worker who becomes age 62 or dies in

2001 before age 62, we will compute the

total amount of benefits payable to them

so that it does not exceed:

(a) 150 percent of the first $717 of the

worker’s primary insurance amount,

plus

(b) 272 percent of the worker’s

primary insurance amount over $717

through $ 1,034, plus

(c) 134 percent of the worker’s

primary insurance amount over $1,034

through $ 1,349, plus

(d) 175 percent of the worker’s

primary insurance amount over $1,349.

We then round this amount to the

next lower multiple of $.10 if it is not

already a multiple of $.10. This formula

and the rounding adjustment described

above are contained in section 203(a) of

the Act (42 U.S.C. 403(a)).

Quarter of Coverage Amount

General. The amount of earnings

required for a quarter of coverage in

2001 is $830. A quarter of coverage is

the basic unit for determining whether

a worker is insured under the Social

Security program. For years before 1978,

we generally credited an individual

with a quarter of coverage for each

quarter in which wages of $50 or more

were paid, or with 4 quarters of

coverage for every taxable year in which

$400 or more of self-employment

income was earned. Beginning in 1978,

employers generally report wages on an

annual basis instead of a quarterly basis.

With the change to annual reporting,

section 352(b) of the Social Security

Amendments of 1977 amended section

213(d) of the Act to provide that a

quarter of coverage would be credited

for each $250 of an individual’s total

wages and self-employment income for

calendar year 1978, up to a maximum of

4 quarters of coverage for the year.

Computation. Under the prescribed

formula, the quarter of coverage amount

for 2001 shall be the larger of: (1) The

1978 amount of $250 multiplied by the

ratio of the national average wage index

for 1999 to that for 1976; or (2) the

current amount of $780. Section 213(d)

further provides that if the resulting

amount is not a multiple of $10, it shall

be rounded to the nearest multiple of

$10.

Quarter of Coverage Amount. The

ratio of the national average wage index

for 1999, $ 30,469.84, compared to that

for 1976, $9,226.48, is 3.3024339.

Multiplying the 1978 quarter of

coverage amount of $250 by the ratio of

3.3024339 produces the amount of

$825.61, which must then be rounded to

$830. Because $830 exceeds the current

amount of $780, the quarter of coverage

amount is $830 for 2001.

‘‘Old-Law’’ Contribution and Benefit

Base

General. The ‘‘old-law’’ contribution

and benefit base for 2001 is $59,700.

This is the base that would have been

effective under the Act without the

enactment of the 1977 amendments. We

compute the base under section 230(b)

Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices 63667

of the Act as it read prior to the 1977

amendments.

The ‘‘old-law’’ contribution and

benefit base is used by:

(a) the Railroad Retirement program to

determine certain tax liabilities and tier

II benefits payable under that program

to supplement the tier I payments which

correspond to basic Social Security

benefits,

(b) the Pension Benefit Guaranty

Corporation to determine the maximum

amount of pension guaranteed under the

Employee Retirement Income Security

Act (as stated in section 230(d) of the

Social Security Act),

(c) Social Security to determine a year

of coverage in computing the special

minimum benefit, as described earlier,

and

(d) Social Security to determine a year

of coverage (acquired whenever

earnings equal or exceed 25 percent of

the ‘‘old-law’’ base for this purpose

only) in computing benefits for persons

who are also eligible to receive pensions

based on employment not covered

under section 210 of the Act.

Computation. The ‘‘old-law’’

contribution and benefit base shall be

the larger of: (1) The 1994 ‘‘old-law’’

base ($45,000) multiplied by the ratio of

the national average wage index for

1999 to that for 1992; or (2) the current

‘‘old-law’’ base ($56,700). If the

resulting amount is not a multiple of

$300, it shall be rounded to the nearest

multiple of $300.

Amount. The ratio of the national

average wage index for 1999,

$30,469.84, compared to that for 1992,

$22,935.42, is 1.3285059. Multiplying

the 1994 ‘‘old-law’’ contribution and

benefit base amount of $45,000 by the

ratio of 1.3285059 produces the amount

of $59,782.76. We round this amount to

$59,700. Because $59,700 exceeds the

current amount of $56,700, the ‘‘oldlaw’’ contribution and benefit base is

$59,700 for 2001.

Substantial Gainful Activity Amounts

General. A finding of disability under

titles II and XVI of the Act requires that

a person be unable to engage in

substantial gainful activity (SGA). A

person who is earning more than a

certain monthly amount (net of

impairment-related work expenses) is

ordinarily considered to be engaging in

SGA. The amount of monthly earnings

considered as SGA depends on the

nature of a person’s disability. Section

223(d)(4)(A) of the Act specifies a higher

SGA amount for statutorily blind

individuals while Federal regulations

specify a lower SGA amount (currently

$700 per month) for non-blind

individuals. At this time, only the SGA

amount for statutorily blind individuals

increases in accordance with increases

in the national average wage index.

Later this year, however, we will issue

a Final Rule in the Federal Register

announcing a wage-indexed SGA

amount applicable to non-blind

disabled beneficiaries for 2001.

Computation. The monthly SGA

amount for statutorily blind individuals

for 2001 shall be the larger of: (1) Such

amount for 1994 multiplied by the ratio

of the national average wage index for

1999 to that for 1992; or (2) such

amount for 2000. If the resulting amount

is not a multiple of $10, it shall be

rounded to the nearest multiple of $10.

SGA Amount for Statutorily Blind

Individuals. The ratio of the national

average wage index for 1999,

$30,469.84, compared to that for 1992,

$22,935.42, is 1.3285059. Multiplying

the 1994 monthly SGA amount for

statutorily blind individuals of $930 by

the ratio of 1.3285059 produces the

amount of $1,235.51. We then round

this amount to $1,240. Because $ 1,240

is larger than the current amount of

$1,170, the monthly SGA amount for

statutorily blind individuals is $1,240

for 2001.

Domestic Employee Coverage

Threshold

General. Section 2 of the ‘‘Social

Security Domestic Employment Reform

Act of 1994’’ (Pub. L. 103–387)

increased the threshold for coverage of

a domestic employee’s wages paid per

employer from $50 per calendar quarter

to $1,000 per annum in calendar year

1994. The statute held the coverage

threshold at the $1,000 level for 1995

and then increased the threshold in

$100 increments for years after 1995.

Section 3121(x) of the Internal Revenue

Code provides the formula for

increasing the threshold.

Computation. Under the formula, the

domestic employee coverage threshold

amount for 2001 shall be equal to the

1995 amount of $1,000 multiplied by

the ratio of the national average wage

index for 1999 to that for 1993. If the

resulting amount is not a multiple of

$100, it shall be rounded to the next

lower multiple of $100.

Domestic Employee Coverage

Threshold Amount. The ratio of the

national average wage index for 1999,

$30,469.84, compared to that for 1993,

$23,132.67, is 1.3171778. Multiplying

the 1995 domestic employee coverage

threshold amount of $1,000 by the ratio

of 1.3171778 produces the amount of

$1,317.18, which must then be rounded

to $1,300. Accordingly, the domestic

employee coverage threshold amount is

$1,300 for 2001.

Election Worker Coverage Threshold

General. Section 303(b) of Pub. L.

103–296, the ‘‘Social Security

Independence and Program

Improvements Act of 1994,’’ increased

from $100 a year to $1,000 a year the

amount an election official or election

worker must be paid for the earnings to

be covered under Social Security or

Medicare, effective January 1, 1995.

Beginning in the year 2000, the coverage

threshold increases automatically with

increases in the national average wage

index.

Computation. Under the formula, the

election worker coverage threshold

amount for 2001 shall be equal to the

1999 amount of $1,000 multiplied by

the ratio of the national average wage

index for 1999 to that for 1997. If the

amount so determined is not a multiple

of $100, it shall be rounded to the

nearest multiple of $100.

Election Worker Coverage Threshold

Amount. The ratio of the national

average wage index for 1999,

$30,469.84, compared to that for 1997,

$27,426.00, is 1.1109837. Multiplying

the 1999 election worker coverage

threshold amount of $1,000 by the ratio

of 1.1109837 produces the amount of

$1,110.98, which we then round to

$1,100. Accordingly, the election

worker coverage threshold amount is

$1,100 for 2001.

OASDI Fund Ratio

General. In addition to providing an

annual automatic cost-of-living increase

in OASDI benefits, section 215(i) of the

Act also includes a ‘‘stabilizer’’

provision that can limit such benefit

increase under certain circumstances. If

the combined assets of the OASI and DI

Trust Funds, as a percentage of annual

expenditures, are below a specified

threshold, the automatic benefit

increase is equal to the lesser of: (1) The

increase in the national average wage

index; or (2) the increase in prices. The

threshold specified for the OASDI fund

ratio is 20.0 percent for benefit increases

for December of 1989 and later. The law

also provides for subsequent ‘‘catch-up’’

benefit increases for beneficiaries whose

previous benefit increases were affected

by this provision. ‘‘Catch-up’’ benefit

increases can occur only when trust

fund assets exceed 32.0 percent of

annual expenditures.

Computation. Section 215(i) specifies

the computation and application of the

OASDI fund ratio. The OASDI fund

ratio for 2000 is the ratio of the

combined assets of the OASI and DI

Trust Funds at the beginning of 2000 to

the estimated expenditures of the OASI

and DI Trust Funds during 2000,

63668 Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices

excluding transfer payments between

the OASI and DI Trust Funds, and

reducing any transfers to the Railroad

Retirement Account by any transfers

from that account into either trust fund.

Ratio. The combined assets of the

OASI and DI Trust Funds at the

beginning of 2000 equaled $896,133

million, and we estimate the

expenditures in 2000 to be $416,120

million. Thus, the OASDI fund ratio for

2000 is 215.4 percent, which exceeds

the applicable threshold of 20.0 percent.

Therefore, the stabilizer provision does

not affect the benefit increase for

December 2000. Although the OASDI

fund ratio exceeds the 32.0-percent

threshold for potential ‘‘catch-up’’

benefit increases, the stabilizer

provision has not reduced any past

benefit increase. Thus, no ‘‘catch-up’’

benefit increase is required.

(Catalog of Federal Domestic Assistance:

Program Nos. 96.001 Social SecurityDisability Insurance; 96.002 Social SecurityRetirement Insurance; 96.004 Social SecuritySurvivors Insurance; 96.006 Supplemental

Security Income)

Dated: October 18, 2000.

Kenneth S. Apfel,

Commissioner of Social Security.

[FR Doc. 00–27249 Filed 10–23–00; 8:45 am]

BILLING CODE 4191–02–P

DEPARTMENT OF STATE

[Public Notice 3454]

Bureau of Educational and Cultural

Affairs Request for Proposals;

Fulbright Student Program

NOTICE: Request for Proposals.

SUMMARY: The Office of Academic

Programs of the United States

Department of State’s Bureau of

Educational and Cultural Affairs

announces an open competition for one

or more assistance award(s). Public and

private non-profit organizations meeting

the provisions described in IRS

regulation 26 CFR 1.501(c) may submit

proposals to provide administrative and

program services for the Fulbright

Student Program in Fiscal Year 2002.

Pursuant to its grants guidelines

established cooperatively with the

Congress, ‘‘The Bureau seeks to promote

competition and balance in its

discretionary grant-making and strives

to avoid exclusivity.’’ The Bureau is

competing the administrative functions

that support the Fulbright Student

Program for the first time in the fiftyfive year history of the Program.

Deadline for receipt of proposals is

February 1, 2001. The cooperative

agreement(s) will begin o/a October 1,

2001, pending appropriation of funds.

Program Information

Overview: The Fulbright Program was

created by the U.S. Congress at the end

of World War II to exchange U.S. and

foreign students, scholars and teachers,

providing them with the opportunity to

experience firsthand the political,

economic and cultural institutions and

societies in each other’s countries. In

the intervening years, the Fulbright

Program has evolved into the premier

educational exchange program

sponsored by the people of the United

States through their federal government,

and thus an important element in the

conduct of U.S. foreign affairs. The

Fulbright Program, which now extends

to approximately 140 foreign countries

and involves 5,000 participants overall

every year, has helped to form and

inform tens of thousands of the world’s

leaders in every academic and

professional field. The student portion

of the Fulbright Program will engage

approximately 875 U.S. and 2,700

foreign students in FY 2002.

The hallmark of the Fulbright

Program is binationalism. The United

States and foreign governments,

educational and other public and

private institutions are all partners in

this exchange. In many countries of the

world, financial contributions from

governments or public/private sources

match or exceed those of the United

States. Because of its binational nature,

the profile of the Fulbright Program

worldwide reflects a range of objectives

and interests.

The Fulbright Program’s grant-making

authority is contained in the Mutual

Educational and Cultural Exchange Act

of 1961, Public Law 87–256, as

amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to

enable the Government of the United

States to increase mutual understanding

between the people of the United States

and the people of other countries * * *;

to strengthen the ties which unite us

with other nations by demonstrating the

educational and cultural interests,

developments, and achievements of the

people of the United States and other

nations * * * and thus to assist in the

development of friendly, sympathetic

and peaceful relations between the

United States and the other countries of

the world.’’ The Fulbright Program is

funded through annual Congressional

appropriations to the Department of

State and receives significant financial

support from partner governments and

private donors worldwide.

Fulbright Student Program

For more than fifty-five years, the

Fulbright Student Program has offered

grants to college and university

graduates as well as to creative artists to

study and conduct research abroad and

in the United States. In the creative and

performing arts, applicants must have

completed four years of professional

study and/or experience. Tens of

thousands of U.S. and foreign students

have participated in the program since

its inception. In FY 2002, the Fulbright

Student Program will send abroad

approximately 875 U.S. students and

artists to study and conduct research

and will bring to this country

approximately 1,500 new foreign

students for similar activities.

Additionally, in FY 2002, the grants to

1,200 foreign students from prior years

will be renewed. Applicants for this

award(s) should submit program

proposals and budget projections for

new students only. Prior year grants will

be administered by the organizations

currently administering the program.

Responsibility for the management of

the Fulbright Student Program is

currently shared among the Bureau of

Educational and Cultural Affairs of the

U.S. Department of State in Washington,

bilateral Fulbright Commissions in 51

countries and public affairs sections of

U.S. embassies overseas, and

cooperating private sector agencies in

the United States. Overall policy

guidelines for all Fulbright programs are

determined by the Presidentiallyappointed J. William Fulbright Foreign

Scholarship Board (FSB).

Because the Fulbright Student

Program is both global and binational in

nature, its administration is

programmatically and administratively

complex. It must accommodate a variety

of circumstances in every geographic

region of the world and be responsive to

and supportive of many different

constituencies in the United States and

abroad, each with its own sets of goals

and concerns. The integrity of the

Program requires that it maintain the

highest and most consistent standards of

academic and professional quality in the

selection of candidates and

implementation of projects. While the

Program is active in some 140 countries,

it is important that it maintain a single

worldwide identity.

Under the FSB’s auspices, U.S.

citizens are awarded grants each year,

through a merit-based, competitive

process, to study and undertake

research at universities or research

institutions abroad. Grant opportunities

for U.S. students are determined

overseas by binational Fulbright