[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 [www.gpo.gov]
[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 http://www.socialsecurity.gov.

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

[[Page 35652]]

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 regulations.gov 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 
https://www.congress.gov/bill/115th-congress/house-bill/4547.
    \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

[[Page 35653]]

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.

[[Page 35654]]

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