Federal Register / Vol. 63, No. 118 / Friday, June 19, 1998 /Rules and Regulations 33545

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960–AD82

Supplemental Security Income for the

Aged, Blind, and Disabled; Valuation of

In-Kind Support and Maintenance With

Cost-of-Living Adjustment

AGENCY: Social Security Administration.

ACTION: Final rules.

SUMMARY: These regulations implement

section 13735 of the Omnibus Budget

Reconciliation Act of 1993 (OBRA

1993). This statutory provision amends

the Social Security Act (the Act) and

requires that the new supplemental

security income (SSI) benefit rate, as

increased by a cost-of-living adjustment

(COLA), be used in determining the

value of the statutory one-third

reduction and the regulatory presumed

maximum value for the computation of

Federal SSI benefit payments for the

first 2 months for which the COLA is in

effect. These rules provide that we value

the statutory one-third reduction and

the regulatory presumed maximum

value using the benefit rate as increased

by a COLA to determine the amount of

in-kind support and maintenance

received by an individual which is to be

counted for those months. This

precludes a decrease in the benefit

amount the third month after a COLA,

a situation which occurred under the

prior law. The legislation is effective for

benefits paid for months after calendar

year 1994.

EFFECTIVE DATE: These final rules are

effective July 20, 1998.

FOR FURTHER INFORMATION CONTACT:

Daniel T. Bridgewater, Legal Assistant,

Office of Process and Innovation

Management, L2109 West Low Rise

Building, Social Security

Administration, 6401 Security

Boulevard, Baltimore, MD 21235–0001,

(410) 965–3298 for information about

these rules. For information on

eligibility or claiming benefits, call our

national toll-free number, 1–800–772–

1213.

SUPPLEMENTARY INFORMATION: Under

retrospective monthly accounting

(RMA), an individual’s current SSI

benefit amount is usually determined

based upon the individual’s income in

the second preceding month (‘‘budget

month’’) before the current month. For

example, January’s SSI benefit amount

is based on the individual’s November

income. In some instances, an

individual receives income in the form

of in-kind support and maintenance and

it is counted using the value of the onethird reduction (VTR) or the presumed

maximum value (PMV) rule. Under the

law prior to the effective date of section

13735 of Public Law 103–66, the VTR

and the PMV were based on the

applicable benefit rates in effect in the

‘‘budget month.’’ Because of RMA

principles, when an annual COLA to the

SSI benefit rate became effective in

January, we used the VTR/PMV amount

from November of the previous year to

determine the individual’s benefit for

January if an individual had in-kind

support and maintenance in the ‘‘budget

month.’’ For example, in figuring an

individual’s January 1994 benefit, we

used November 1993 as the ‘‘budget

month.’’ Thus, in a computation using

the VTR, we would subtract the 1993

VTR amount of $144.66 from the 1994

benefit rate of $446.00, giving the

individual an SSI benefit of $301.34.

February’s benefit amount would also

be computed using the new benefit rate

and the 1993 VTR amount. However, in

computing March’s benefit amount, we

used the benefit rate of $446.00 less the

January 1994 VTR amount of $148.66,

resulting in an SSI benefit amount of

$297.34. Thus, the individual’s January

and February payments exceeded the

March payment because of the increased

amount of the new VTR used when

January was the ‘‘budget month.’’

Notices were then released to these

individuals notifying them of the

decrease in their March payment. This

was confusing to SSI recipients because

their payment amounts increased and

then decreased even if there was no

change in their living arrangements.

We are changing the method of

valuation of the VTR/PMV to reflect

section 13735 of Public Law 103–66 for

benefits paid after calendar year 1994,

by using the new benefit rate as

increased by a COLA in determining the

VTR or PMV for the computation of SSI

benefits for the first 2 months for which

the COLA is in effect. Thus, beginning

with the COLA effective January 1,

1995, both the new increased benefit

rate and new increased VTR or PMV

amounts are being used in computing a

January and February benefit amount.

Unlike the example used previously, the

individual’s January, February, and

March payments calculated by using the

VTR amount will be the same assuming

all other income remains constant—i.e.,

there will be no decrease in the SSI

benefit amount the third month after a

COLA. This eliminates confusion for

recipients and also eliminates the need

for issuance of notices informing

affected recipients of the decrease in

their March payment.

We state in the final regulations at

§ 416.420(a) that we will use the benefit

rate, as increased by a COLA, in

determining the value of certain in-kind

support and maintenance used to

compute an individual’s SSI benefit

amount for the first 2 months in which

the COLA is in effect. We have added

a third example to § 416.420(a) to

further clarify the regulatory intent.

We state in the final regulations at

§ 416.1130 how we value in-kind

support and maintenance when a COLA

applies, and we have altered the

example to reflect the situation when a

COLA becomes effective.

On August 9, 1995, we published

these rules as a notice of proposed

rulemaking in the Federal Register at 60

FR 40542 with a 60-day comment

period. We received comments from

only one source, and the commenter

fully supported the proposed rule

because it eliminates a significant

anomaly in the SSI program. Therefore,

we are publishing the final rules

essentially unchanged from the

proposed rules.

Regulatory Procedures

Executive Order 12866

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. Thus, they were not subject to

OMB review.

Paperwork Reduction Act of 1980

These final rules impose no new

reporting or recordkeeping requirements

subject to OMB clearance.

Regulatory Flexibility Act

We certify that these final rules will

not have a significant economic impact

on a substantial number of small entities

because they affect only individuals.

Therefore, a regulatory flexibility

analysis as provided in the Regulatory

Flexibility Act, as amended, is not

required.

(Catalog of Federal Domestic Assistance

Program No. 96.006, Supplemental Security

Income)

List of Subjects in 20 CFR Part 416

Administrative practice and

procedure, Aged, Blind, Disability

benefits, Public assistance programs,

Reporting and recordkeeping

requirements, Supplemental Security

Income (SSI).

Dated: June 9, 1998.

Kenneth S. Apfel,

Commissioner of Social Security.

For the reasons set out in the

preamble, subparts D and K of part 416

of chapter III of title 20 of the Code of
33546 Federal Register / Vol. 63, No. 118 / Friday, June 19, 1998 /Rules and Regulations

Federal Regulations are amended as

follows:

PART 416—SUPPLEMENTAL

SECURITY INCOME FOR THE AGED,

BLIND, AND DISABLED

Subpart D—[Amended]

1. The authority citation for subpart D

of part 416 continues to read as follows:

Authority: Secs. 702(a)(5), 1611(a), (b), (c),

and (e), 1612, 1617, and 1631 of the Social

Security Act (42 U.S.C. 902(a)(5), 1382(a), (b),

(c), and (e), 1382a, 1382f, and 1383).

2. Section 416.420 is amended by

revising paragraph (a) to read as follows:

§ 416.420 Determination of benefits;

general.

* * * * *

(a) General rule. We generally use the

amount of your countable income in the

second month prior to the current

month to determine how much your

benefit amount will be for the current

month. We will use the benefit rate (see

§§ 416.410 through 416.414), as

increased by a cost-of-living adjustment,

in determining the value of the onethird reduction or the presumed

maximum value, to compute your SSI

benefit amount for the first 2 months in

which the cost-of-living adjustment is in

effect. If you have been receiving an SSI

benefit and a Social Security insurance

benefit and the latter is increased on the

basis of the cost-of-living adjustment or

because your benefit is recomputed, we

will compute the amount of your SSI

benefit for January, the month of an SSI

benefit increase, by including in your

income the amount by which your

Social Security benefit in January

exceeds the amount of your Social

Security benefit in November. Similarly,

we will compute the amount of your SSI

benefit for February by including in

your income the amount by which your

Social Security benefit in February

exceeds the amount of your Social

Security benefit in December.

Example 1. Mrs. X’s benefit amount is

being determined for September (the current

month). Mrs. X’s countable income in July is

used to determine the benefit amount for

September.

Example 2. Mr. Z’s SSI benefit amount is

being determined for January (the current

month). There has been a cost-of-living

increase in SSI benefits effective January. Mr.

Z’s countable income in November is used to

determine the benefit amount for January. In

November, Mr. Z had in-kind support and

maintenance valued at the presumed

maximum value as described in

§ 416.1140(a). We will use the January benefit

rate, as increased by the COLA, to determine

the value of the in-kind support and

maintenance Mr. Z received in November

when we determine Mr. Z’s SSI benefit

amount for January.

Example 3. Mr. Y’s SSI benefit amount is

being determined for January (the current

month). Mr. Y has Social Security income of

$100 in November, $100 in December, and

$105 in January. We find the amount by

which his Social Security income in January

exceeds his Social Security income in

November ($5) and add that to his income in

November to determine the SSI benefit

amount for January.

* * * * *

Subpart K—[Amended]

3. The authority citation for subpart K

of part 416 continues to read as follows:

Authority: Secs. 702(a)(5), 1602, 1611,

1612, 1613, 1614(f), 1621, and 1631 of the

Social Security Act (42 U.S.C. 902(a)(5),

1381a, 1382, 1382a, 1382b, 1382c(f), 1382j,

and 1383); sec. 211, Pub. L. 93–66, 87 Stat.

154 (42 U.S.C. 1382 note).

4. Section 416.1130 is amended by

revising paragraph (a) to read as follows:

§ 416.1130 Introduction

(a) General. Both earned income and

unearned income include items

received in kind (§ 416.1102). Generally,

we value in-kind items at their current

market value and we apply the various

exclusions for both earned and

unearned income. However, we have

special rules for valuing food, clothing,

or shelter that is received as unearned

income (in-kind support and

maintenance). This section and the ones

that follow discuss these rules. In these

sections (§§ 416.1130 through 416.1148)

we use the in-kind support and

maintenance you receive in the month

as described in § 416.420 to determine

your SSI benefit. We value the in-kind

support and maintenance using the

Federal benefit rate for the month in

which you receive it. Exception: For the

first 2 months for which a cost-of-living

adjustment applies, we value in-kind

support and maintenance you receive

using the VTR or PMV based on the

Federal benefit rate as increased by the

cost-of-living adjustment.

Example: Mr. Jones receives an SSI benefit

which is computed by subtracting one-third

from the Federal benefit rate. This one-third

represents the value of the income he

receives because he lives in the household of

a son who provides both food and shelter (inkind support and maintenance). In January,

we increase his SSI benefit because of a costof-living adjustment. We base his SSI

payment for that month on the food and

shelter he received from his son two months

earlier in November. In determining the

value of that food and shelter he received in

November, we use the Federal benefit rate for

January.

* * * * *

[FR Doc. 98–16206 Filed 6–18–98; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

23 CFR Part 655

[FHWA Docket 96–9; FHWA–97–2281]

RIN 2125–AD89

National Standards for Traffic Control

Devices; Revision of the Manual on

Uniform Traffic Control Devices;

Pedestrian, Bicycle, and School

Warning Signs

AGENCY: Federal Highway

Administration (FHWA), DOT.

ACTION: Final amendment to the Manual

on Uniform Traffic Control Devices

(MUTCD).

SUMMARY: This document contains an

amendment to the MUTCD which has

been adopted by the FHWA for

inclusion therein. The amendment

revises sections of the MUTCD to permit

the optional use of fluorescent yellow

green (FYG) warning signs related to

pedestrian, bicycle, and school

applications. The MUTCD is

incorporated by reference in FHWA’s

regulations on traffic control devices on

Federal-aid and other streets and

highways, and recognized as the

national standard for traffic control

devices on all public roads. This

amendment is intended to expedite

traffic, improve safety and provide a

more uniform application of highway

signs, signals, and markings.

DATES: The final rule is effective on June

19, 1998. Incorporation by reference of

the publication listed in the regulations

is approved by the Director of the

Federal Register as of June 19, 1998.

FOR FURTHER INFORMATION CONTACT: Mr.

Ernest Huckaby, Office of Highway

Safety (202) 366–9064; or Mr. Ray

Cuprill, Office of Chief Counsel, (202)

366–1377, Federal Highway

Administration, 400 Seventh Street,

SW., Washington, DC 20590. Office

hours are from 7:45 a.m. to 4:15 p.m.,

e.t., Monday through Friday except

Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access

Internet users can access all

comments received by the U.S. DOT

Dockets, Room PL–401, by using the

universal resource locator (URL): http:/