57222 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

fittings of the front, middle, and rear 

spars; and corrective actions if 

necessary. 

As published, that NPRM specifies an 

incorrect Docket No. (i.e., FAA–2005–

20403) throughout preamble and the 

regulatory text of the AD. The correct 

Docket No. is FAA–2005–22403. 

No other part of the regulatory 

information has been changed; 

therefore, the NPRM is not republished 

in the Federal Register. 

The last date for submitting comments 

to the NPRM remains October 14, 2005. 

§ 39.13 [Corrected] 

In the Federal Register of September 

14, 2005, on page 54318, in the first 

column, paragraph 2. of PART 39—

AIRWORTHINESS DIRECTIVES of 

NPRM, Docket No. FAA–2005–22403, 

Directorate Identifier 2005–NM–144–AD 

is corrected to read as follows: 

* * * * * 

Bombardier, Inc. (Formerly de Havilland, 

Inc.): Docket No. FAA–2005–22403; 

Directorate Identifier 2005–NM–144–AD. 

* * * * * 

Issued in Renton, Washington, on 

September 26, 2005. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–19558 Filed 9–29–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–22402; Directorate 

Identifier 2005–NM–133–AD] 

RIN 2120–AA64 

Airworthiness Directives; Sabreliner 

Model NA–265, NA–265–20, NA–265–

30, NA–265–40, NA–265–50, NA–265–

60, NA–265–65, NA–265–70, and NA–

265–80 Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM); correction. 

SUMMARY: The FAA is correcting a 

typographical error in an NPRM that 

was published in the Federal Register 

on September 14, 2005 (70 FR 54318). 

The error resulted in an incorrect 

Docket No. The NPRM applies to certain 

Sabreliner Model NA–265, NA–265–20, 

NA–265–30, NA–265–40, NA–265–50, 

NA–265–60, NA–265–65, NA–265–70, 

and NA–265–80 series airplanes. The 

NPRM would require repetitive 

inspections for discrepancies in the 

front and rear spars of the wing in the 

area of the wing center section, and in 

the lugs on the rear spar and wing 

trailing edge panel rib, and corrective 

actions if necessary. The NPRM also 

would require inspections for fuel leaks 

of the front and rear spars of the wing, 

and for discrepancies in the front and 

rear spars of the wing in the area of the 

wing center section, and in the lugs on 

the rear spar and wing trailing edge 

panel rib; and related investigative and 

corrective actions, if necessary. 

FOR FURTHER INFORMATION CONTACT: T.N. 

Baktha, Aerospace Engineer, Airframe 

Branch, ACE–118W, FAA, Wichita 

Aircraft Certification Office, 1801 

Airport Road, room 100, Mid-Continent 

Airport, Wichita, Kansas 67209; 

telephone (316) 946–4155; fax (316) 

946–4407. 

SUPPLEMENTARY INFORMATION: On 

September 6, 2005, the FAA issued a 

notice of proposed rulemaking (NPRM) 

to amend 14 CFR part 39 to include an 

AD that would apply to certain 

Sabreliner Model NA–265, NA–265–20, 

NA–265–30, NA–265–40, NA–265–50, 

NA–265–60, NA–265–65, NA–265–70, 

and NA–265–80 series airplanes. That 

NPRM was published in the Federal 

Register on September 14, 2005 (70 FR 

54318). That NPRM proposed to require 

repetitive inspections for discrepancies 

in the front and rear spars of the wing 

in the area of the wing center section, 

and in the lugs on the rear spar and 

wing trailing edge panel rib, and 

corrective actions if necessary. That 

NPRM also proposed to require 

repetitive inspections for fuel leaks of 

the front and rear spars of the wing, and 

for discrepancies in the front and rear 

spars of the wing in the area of the wing 

center section, and in the lugs on the 

rear spar and wing trailing edge panel 

rib; and related investigative and 

corrective actions, if necessary. 

As published, that NPRM specifies an 

incorrect Docket No. (i.e., FAA–2005–

20402) throughout preamble and the 

regulatory text of the AD. The correct 

Docket No. is FAA–2005–22402. 

No other part of the regulatory 

information has been changed; 

therefore, the NPRM is not republished 

in the Federal Register. 

The last date for submitting comments 

to the NPRM remains October 31, 2005. 

§ 39.13 [Corrected] 

In the Federal Register of September 

14, 2005, on page 54320, in the third 

column, paragraph 2. of PART 39—

AIRWORTHINESS DIRECTIVES of 

NPRM, Docket No. FAA–2005–22402, 

Directorate Identifier 2005–NM–133–AD 

is corrected to read as follows: 

* * * * * 

Sabreliner Corporation: Docket No. FAA–

2005–22402; Directorate Identifier 2005–

NM–133–AD. 

* * * * * 

Issued in Renton, Washington, on 

September 26, 2005. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–19557 Filed 9–29–05; 8:45 am] 

BILLING CODE 4910–13–P 

SOCIAL SECURITY ADMINISTRATION 

20 CFR Part 411 

RIN 0960–AF89 

Amendments to the Ticket to Work and 

Self-Sufficiency Program 

AGENCY: Social Security Administration. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: We are proposing to revise 

our regulations for the Ticket to Work 

and Self-Sufficiency Program (Ticket to 

Work program), authorized by the 

Ticket to Work and Work Incentives 

Improvement Act of 1999. The Ticket to 

Work program provides beneficiaries 

with disabilities expanded options for 

access to employment services, 

vocational rehabilitation services, and 

other support services. We are 

proposing to make revisions to the 

current rules to improve the overall 

effectiveness of the program in assisting 

beneficiaries to maximize their 

economic self-sufficiency through work 

opportunities. These revisions are based 

on our vision of the future direction of 

the Ticket to Work program, our 

experience using the current rules, and 

recommendations made by a number of 

commenters on the program. 

DATES: To be sure your comments are 

considered, we must receive them by 

December 29, 2005. 

ADDRESSEES: You may give us your 

comments by: using our Internet site 

facility (i.e., Social Security Online) at 

http://policy.ssa.gov/erm/ 

Rules+Open+To+Comment or the 

Federal eRulemaking Portal: http:// 

www.regulations.gov; e-mail to 

regulations@ssa.gov; by telefax to (410) 

966–2830; or letter to the Commissioner 

of Social Security, P.O. Box 17703, 

Baltimore, MD 21235–7703. You may 

also deliver them to the Office of 

Regulations, Social Security 

Administration, 107 Altmeyer Building, 

6401 Security Boulevard, Baltimore, MD 

21235–6401, between 8 a.m. and 4:30 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57223 

p.m. on regular business days. 

Comments are posted on our Internet 

site or you may also inspect the 

comments on regular business days by 

making arrangements with the contact 

person shown in the preamble. 

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. 

FOR FURTHER INFORMATION CONTACT: Greg 

Zwitch, SSA Regulations Officer, Social 

Security Administration, 107 Altmeyer 

Building, 6401 Security Boulevard, 

Baltimore, MD 21235–6401, e-mail to 

regulations@ssa.gov, or telephone (410) 

965–1887 or TTY (410) 966–5609 for 

information about these rules. 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, http:// 

www.socialsecurity.gov. 

Note: We plan to hold a series of town 

meetings to obtain additional input on these 

proposed changes. These meetings, which 

will be open to the public, will be announced 

in the Federal Register in advance. To ensure 

your comments are considered, please 

provide written comments by the date 

mentioned in DATES, using the method 

shown in ADDRESSEES. 

SUPPLEMENTARY INFORMATION: 

Background 

The Ticket to Work and Work Incentives 

Improvement Act of 1999 

Public Law 106–170 established the 

Ticket to Work program on December 

17, 1999. This law represented an 

historic milestone in that it was the first 

time that Congress explicitly recognized 

that while many people receiving 

disability benefits from Social Security 

want to work, and are able to work, they 

face a number of significant barriers that 

prevent them from reaching their goals. 

Congress established the Ticket to Work 

program to provide Social Security 

beneficiaries ‘‘real choice in obtaining 

the services and technology that they 

need to find, enter, and maintain 

employment’’ by expanding the 

universe of service providers. 

Under the Ticket to Work program, 

the Commissioner of Social Security 

(the Commissioner) may issue a ticket to 

Social Security Disability Insurance 

(SSDI) beneficiaries and to disabled or 

blind Supplemental Security Income 

(SSI) recipients (‘‘beneficiaries’’). In this 

voluntary program, each beneficiary 

who receives a Ticket to Work has the 

option of using his or her ticket to 

obtain services from a provider known 

as an employment network (EN) or from 

a State vocational rehabilitation (VR) 

agency. ENs may choose to whom they 

provide services. When the beneficiary 

and an EN or State VR agency agree to 

work together under the program, the 

EN or State VR agency will provide, 

without charge to the beneficiary, 

employment services, vocational 

rehabilitation services, and other 

support services to assist the beneficiary 

in obtaining or regaining and ultimately 

maintaining self-supporting 

employment. If the beneficiary achieves 

certain work outcomes, we will pay the 

EN or State VR agency. 

The SSDI and SSI programs serve a 

diverse population of individuals with 

disabilities. Our beneficiaries are 

comprised of people from various age 

groups with different impairments, 

levels of education, work experience, 

and capacities for working. While many 

cannot work at all on a sustained basis, 

others may be able to work part-time or 

full-time with reasonable 

accommodations and/or ongoing 

supports. This view is consistent with 

the assumptions underlying the 

Americans with Disabilities Act. As we 

develop our return to work initiatives, 

we are also mindful that the unique 

needs of every beneficiary cannot be 

met by one program. 

On July 27th 2005, the Commissioner 

announced publication of a notice of 

proposed rule making in the Federal 

Register which set out her plan to 

improve our disability determination 

process. As part of our plans to improve 

this process, we intend to conduct 

several demonstration projects aimed at 

helping people who want to work do so. 

These projects advance the President’s 

New Freedom Initiative and provide 

work incentives and opportunities 

earlier in the disability determination 

process. Thus, the Ticket to Work 

program, is an important part of a 

comprehensive SSA initiative dedicated 

to helping people with disabilities who 

want to work do so to their fullest 

capabilities. 

The Current Ticket to Work Regulations 

Public Law 106–170 directs the 

Commissioner to periodically review EN 

payment systems to ensure that they 

provide adequate incentives for ENs to 

assist beneficiaries. Based on three years 

of experience administering the 

program, we are proposing a number of 

revisions to our current rules. We 

believe that these proposed changes will 

significantly enhance beneficiary choice 

and improve the likelihood that 

beneficiaries will receive the most 

effective combination of services. 

Issues Addressed in These Proposed 

Rules 

State Participation and Beneficiary 

Choice 

Subpart F of the current Ticket to 

Work rules (20 CFR 411.350–411.435) 

explains how State VR agencies 

participate in the Ticket to Work 

program. With respect to a beneficiary 

who holds a ticket, a State VR agency 

may elect, on a case-by-case basis, to 

participate in the program as an EN. If 

the State VR agency does so, it will be 

paid under an EN payment system it 

elects pursuant to section 1148(h) of the 

Social Security Act (the Act). With 

respect to a beneficiary that the State VR 

agency does not elect to serve as an EN, 

the State VR agency shall be paid for 

services provided to that beneficiary 

under the cost reimbursement payment 

system applicable under section 222(d) 

of the Act and section 1615(d) and (e) 

of the Act. Under our current rules, if 

the State VR agency elects to be paid for 

services under the cost reimbursement 

system, the beneficiary’s ticket must be 

assigned to the State VR agency in order 

for that agency to be paid through that 

system. In addition, when the State VR 

agency is paid under the cost 

reimbursement system with respect to a 

ticket, our rules preclude any 

subsequent payment to an EN or a VR 

agency serving as an EN with respect to 

the same ticket. In September 2002, we 

clarified some of these rules in 

‘‘Transmittal 17’’ to the Vocational 

Rehabilitation Providers Handbook 

(chapter 12). This transmittal added 

background information and procedures 

for State VR agencies to follow regarding 

the Ticket to Work program. If these 

proposed rules become final, we will 

issue new procedures to replace 

Transmittal 17. 

We have received many comments 

that our current policy, which precludes 

further use of a ticket if VR 

reimbursement has been paid, is too 

restrictive and does not allow our 

beneficiaries to take advantage of the 

full potential of the Ticket to Work 

program. After considering our 

experience in implementing the 

program, we agree. In order to expand 

the opportunities for beneficiaries under 

this program, we propose to make 

changes to the rules in subpart F to 

provide that a beneficiary’s ticket need 

not be assigned to a State VR agency in 

order for the VR agency to be paid under 

the cost reimbursement payment 

system. We also propose changes in 

subpart C to provide that, in such cases 

when the beneficiary is receiving 

services from a State VR agency that has 

chosen to be paid under the cost 

57224 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

reimbursement payment system, the 

beneficiary will be considered to be 

‘‘using a ticket’’ as described in that 

subpart. This means that the beneficiary 

will be afforded protection from the 

initiation of a continuing disability 

review while receiving services from a 

State VR agency, provided that all the 

related provisions regarding timely 

progress are met. 

We also propose to make a related 

change that would allow for payment to 

an EN under a Ticket to Work payment 

system and to a State VR agency under 

the cost reimbursement payment system 

with respect to the same beneficiary. We 

believe that these changes would greatly 

expand beneficiary choice and enable 

beneficiaries to take advantage of a more 

effective combination of services from 

both a VR agency and an EN. For 

example, the State VR agency could 

provide the initial, intensive 

rehabilitation services, and an EN could 

follow up by providing the ongoing 

support many individuals, particularly 

those with psychiatric and cognitive 

impairments, need to maintain their 

work efforts. We do not, however, 

permit a beneficiary to assign a ticket to 

an EN while a State VR agency is 

continuing to provide services. 

We propose to make related changes 

in subparts B and F with regard to ticket 

assignment. We provide that a 

beneficiary may not assign a ticket to a 

State VR agency if a State VR agency has 

provided the beneficiary with services 

and received payment under the cost 

reimbursement system with respect to 

the services provided to the beneficiary. 

We are making this change to ensure 

that State VR agencies do not potentially 

receive payments under both payment 

systems for the same beneficiary, which 

would provide an unfair advantage over 

ENs. 

Also in subpart F, we propose to 

explain the limited payment option in 

instances where a beneficiary is 

receiving services from a State VR 

agency before the beneficiary has a 

ticket. In these cases, the State VR 

agency will be limited to the cost 

reimbursement payment system. 

Employment Network Payment Systems 

The rules for EN payment systems are 

set out in subpart H of part 411 (20 CFR 

§§ 411.500 through 411.597). Currently 

§ 411.597(a) states, ‘‘We will 

periodically review the system of 

payments and their programmatic 

results to determine if they provide an 

adequate incentive for ENs to assist 

beneficiaries to enter the work force, 

while providing for appropriate 

economies.’’

The question of whether the current 

Ticket to Work program provides an 

adequate incentive for ENs to assist 

beneficiaries has been studied 

extensively. In an evaluation of the 

Ticket to Work program by Mathematica 

Policy Research (MPR) in February 

2004, MPR reports that despite 

aggressively marketing the Ticket to 

Work program to over 50,000 

organizations, only about 1000 non-state 

providers have signed up as ENs and 

only a few hundred are actively 

participating. Over time, organizations 

have become more reluctant to join the 

Ticket to Work program as service 

providers. The overall number of service 

providers in the program remains low, 

with retention a major challenge. The 

financial viability of ENs remains 

uncertain as ENs report losing money on 

Ticket to Work operations. 

Furthermore, the Ticket to Work and 

Work Incentives Advisory Panel 

(TWWIAP) and a number of witnesses 

testifying before the Subcommittee on 

Social Security of the House Committee 

on Ways and Means have noted that the 

current design of the EN payment 

systems (see chart I) remains a major 

reason for limited EN and beneficiary 

participation. They have stressed that it 

is crucial to increase payments to ENs 

earlier in the process, because it is more 

resource-intensive to assist most 

beneficiaries to obtain jobs. 

CHART I.—CURRENT EN PAYMENT METHOD

Outcome achieved when Percent of 

PCB* 

SSI 

ticket-holder 

SSDI 

ticket-holder 

Outcome—Payment Method 

Outcome Payments: 

Social Security disability benefits and Federal SSI cash benefits are not payable to the 

individual because of work or earnings ............................................................................ 40 1 $204 1 $347 

Total Outcome Payments Available (60 payments) ............................................................. ........................ 12,240 20,820 

1Per month. 

Milestone Must occur before the first Outcome payment month, and is achieved 

when the beneficiary works 

Percent of 

PCB* 

SSI 

ticket-holder 

SSDI 

ticket-holder 

Outcome—Milestone Payment Method 

1 ............................ 1 calendar month above gross SGA ....................................................... 34 $173 $295 

2 ............................ 3 calendar months above gross SGA in a 12-month period ................... 68 347 590 

3 ............................ 7 calendar months above gross SGA in a 12-month period ................... 136 694 1,181 

4 ............................ 12 calendar months above gross SGA in a 15-month period ................. 170 867 1,476 

Total of the 4 Milestone Payments Available .......................................... ........................ 2,081 3,542 

+60 (reduced) Outcome Payments.Social Security disability benefits and Federal SSI cash benefits are 

not payable to the individual because of work or earnings. Each Outcome Payment made to an EN is reduced by an amount equal to 1/ 

60th of the total Milestone Payments made to that EN.

34 Depending on the number of 

milestones achieved, outcome payments could range 

from $138–$173 SSI Ticket 

Holder, $236–$295 SSDI 

Ticket Holder. 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57225 

Milestone Must occur before the first Outcome payment month, and is achieved 

when the beneficiary works 

Percent of 

PCB* 

SSI 

ticket-holder 

SSDI 

ticket-holder 

Total Available ....... Added together, the 4 milestone payments plus 60 available months of 

reduced outcome payments, should equal about 85% of the Outcome Payment System.

........................ 10,361 17,702 

* The Payment Calculation base (PCB) is the national average disability benefit payable under each of the Social Security Administration’s two 

disability programs. PCB for 2005 is based on the Social Security Administration formulas for 2004. Each December the Social Security Administration will calculate two PCBs and post them to its ‘‘work’’ Web site, http://www.ssa.gov/work. PCB for 2005: $868.20 for SSDI and $510.23 for 

SSI. Individual payments have been rounded to the nearest whole dollar. For further explanation of the Final Regulations for the Social Security 

Administration Ticket to Work Program, please visit www.socialsecurity.gov/regulations. 

In addition, at our request, the 

Disability Research Institute of the 

University of Illinois at UrbanaChampaign convened an Advisory 

Group on the Adequacy of Incentives 

(AOI Advisory Group) in April 2003. 

Consistent with section 1148(h)(5)(C) of 

the Act, the AOI Advisory Group 

provided recommendations regarding 

the adequacy of incentives. That section 

requires that particular attention be paid 

to:, individuals with disabilities with a 

need for ongoing support and services; 

those with a need for high-cost 

accommodations; those who earn a subminimum wage; and those who work 

and receive partial cash benefits. 

Accordingly, we have decided to 

propose changes to subpart H that are 

intended to create a greater financial 

incentive for EN participation. 

First, under the current outcomemilestone payment system, the current 

regulations provide that an EN’s total 

potential payment is approximately 85 

percent of the total that would have 

been potentially payable under the 

outcome payment system for the same 

beneficiary. We are proposing to 

increase the total potential payment 

under the outcome-milestone payment 

system to 90 percent of the total. By 

increasing the total potential payment, 

we believe that we will increase the 

incentive for small or undercapitalized 

providers to participate as ENs in the 

program. 

Second, the AOI Advisory Group 

recommended a payment approach that 

recognizes that the steps leading to 

maximizing self-sufficiency are 

incremental and may be interrupted 

periodically, but over time the benefits 

of increasing work activity are 

significant. Beneficiaries face multiple 

barriers to employment such as: A lack 

of access to training and employment 

services, loss of ongoing employment 

supports, loss of employment, etc. We 

are proposing a three-phased payment 

system that parallels the steps 

beneficiaries take toward selfsufficiency. 

Phase 1 represents the beneficiaries 

initial efforts at employment. Phase 1 is 

modeled on the Trial Work period 

provided for SSDI beneficiaries. Four 

milestones will be paid when the 

beneficiary works for a period of time at 

the trial work earnings level. Phase 1 

Milestones are the only payments that 

will be the same for both SSI and SSDI 

beneficiaries, based on the higher SSDI 

payment calculation base. This 

addresses the concern that the initial 

phase is the most expensive for the EN 

to provide services and without equal 

payments SSI beneficiaries would have 

difficulty accessing Phase 1 services. 

The Trial Work earnings requirement 

($590/mo. for 2005) represents a 

significant work and earnings milestone 

for beneficiaries as well as an attainable 

payment point for ENs. 

Phase 2 represents a significant 

additional step toward self-sufficiency 

with increased earnings. We anticipate 

that some beneficiaries will progress to 

Phase 2, increasing work hours and 

earnings to above the SGA level ($830 

for 2005). We propose, as the AOI 

Advisory Group recommended, to 

encourage the use of work incentives 

during this second phase by making 

payments to ENs based on gross 

earnings before adjustments for work 

incentives. We anticipate that SSI 

beneficiaries will take longer to 

complete phase 2, 18 months instead of 

11 months for SSDI beneficiaries, due to 

lower levels of work experience prior to 

entering the rolls. 

The final phase is the Outcome 

payment period where ENs will provide 

services to support retention of 

employment after the beneficiary leaves 

the SSA rolls. We used the SSDI 

extended period of eligibility (EPE) as 

the template for the 36 month Outcome 

payment period for SSDI beneficiaries. 

SSI beneficiaries, having less work 

experience and often more significant 

disabilities, may need a longer Outcome 

payment period compared to SSDI 

beneficiaries. Therefore, we are leaving 

the SSI Outcome period at 60 months. 

This has the additional positive effect of 

roughly equalizing the total Ticket 

payments for SSI and SSDI 

beneficiaries. This addresses the 

concern expressed by the AOI Advisory 

Group that total payment amounts be 

equalized in order to remove any 

financial disincentive for ENs to serve 

SSI beneficiaries. 

Finally, our proposed rule will 

increase the overall percentage of the 

payment calculation base which is 

allocated for Ticket payments from 40% 

to 67%. Both the AOI Advisory Group 

and the TWWIAP expressed concerns 

that current funding levels are 

inadequate to support the consumer 

driven employment service model that 

Congress envisioned in the Ticket to 

Work legislation. Congress explicitly 

permitted the Commissioner to review 

and adjust the 40% funding level set in 

the Act. The 40% funding level proved 

inadequate to attract sufficient ENs to 

the marketplace to allow for adequate 

access to services and consumer choice. 

We believe that a combination of: (1) 

Increasing overall funding; (2) reducing 

the differential between Outcome and 

Outcome-Milestone payments; (3) 

equalizing funding between SSDI and 

SSI; (4) increasing Milestone payments; 

and (5) providing a shorter timeframe 

for payments to ENs serving SSDI 

beneficiaries will increase the incentive 

for small or undercapitalized providers 

to participate as ENs. The resulting 

increased EN participation will improve 

beneficiary access to services and 

quality providers. The proposed 

payment rates are presented in charts II 

through IV using the 2005 Payment 

Calculation base. 

57226 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

CHART II.—PROPOSED OUTCOME—MILESTONE PAYMENT TABLE

[2005 figures for illustration only] 

Payment type Beneficiary earnings SSDI amount of 

payment 

Title SSI amount of 

payment 

Phase 1 (120% of SSDI PCB) * 

Milestone 1 ................................................ $295 for two weeks work ................................. $1,042 $1,042 

Milestone 2 ................................................ $590/mo. × 3 months work (cumulative) ......... $1,042 $1,042 

Milestone 3 ................................................ $590/mo. × 6 months work (cumulative) ......... $1,042 $1,042 

Milestone 4 ................................................ $590/mo. × 9 months work (cumulative) ......... $1,042 $1,042 

Total Phase 1 ..................................... ........................................................................... $4,168 $4,168 

Phase 2 (36% of PCB) Gross Earnings>$830.

SSDI Milestones 1–11 ...................................... ........................................................................... $313 × 11 = $3,443 

SSI Milestones 1–18 ......................................... ........................................................................... .................................... $184 × 18 = $3,312 

Total Phase 1 + 2 Milestones ............ ........................................................................... $7,611 * $7,480 * 

Outcome Payments (36% of PCB). 

SSDI = 1–36 .............................................. >$830/and monthly cash benefit not payable .. $313 × 36 = $11,268 

SSI = 1–60 ................................................. Sufficient earnings for federal cash benefits = 

‘‘0’’.

.................................... $184 × 60 = $11,040 

Total milestone and outcome payments............................................................................ $18,879 $18,520 

* A Lump sum milestone is the remaining total milestones unpaid if the outcome period is reached before all the milestones are achieved. This 

can be any number of the remaining milestones and is paid after the first outcome payment is achieved. 

CHART III.—PROPOSED OUTCOME ONLY TABLE—SSDI AND CONCURRENT

[2005 figures for illustration only] 

Payment type Beneficiary earnings 

SSDI amount of 

monthly 

payment 

SSDI total 

payments 

Outcome payments 1–36 (67% of PCB) .......... >$830.00/and monthly cash benefit not payable.$582.00 $20,952 

CHART IV.—PROPOSED OUTCOME ONLY TABLE—SSI ONLY

[2005 figures for illustration only] 

Payment type Beneficiary earnings 

SSI amount of 

monthly 

payment 

SSI total 

payments 

Outcome payments 1–60 (67% of PCB) .......... Earnings sufficient to ‘‘0’’ out SSI federal cash 

benefit.

$342.00 $20,520 

Definitions and amounts: PCB 

payment calculation base—average 

benefits payable in calendar year, each 

title has its own base (2005 SSDI = 

$868.20, SSI = $510.23) 

Phase 1 Milestones = 120% of PCB * 

Phase 2 milestones = 36% of PCB 

Outcome payments (out-mile) = 36% of 

PCB 

Outcome only payment = 67% of PCB 

(Rounding is to the nearest dollar 

amount) 2005 SGA = $830, 2005 TWP 

= $590 

* For Phase 1 Milestones ONLY, the 

payments are calculated for both SSI 

and SSDI beneficiaries using the higher 

SSDI Payment Calculation Base (PCB). 

This is intended to remove any 

disincentive to serve SSI beneficiaries 

during the initial high cost phase of 

services. All other payments are 

calculated based on a percentage of the 

Payment Calculation Base (PCB) for the 

respective program (SSI or SSDI). 

Ticket Eligibility for Beneficiaries Whose 

Conditions May Medically Improve 

The TWWIAP, in its July 26, 2001 

report to the Commissioner, 

recommended that ‘‘[a]ll SSI and SSDI 

adult disability beneficiaries, including 

those with a Medical Improvement 

Expected (MIE) designation, should be 

eligible to participate in the Ticket 

program’’ and ‘‘sixteen (16) and 

seventeen (17) year-old beneficiaries, 

including those with an MIE 

designation, should be eligible to 

participate in the Ticket program.’’ The 

TWWIAP reiterated these 

recommendations in its August 2002 

and May 2003 Annual Reports to 

Congress and to the President. 

Furthermore, the Government 

Accountability Office (GAO) in its July 

2003 report entitled ‘‘Social Security 

Disability: Reviews of Beneficiaries’

Disability Status Require Continued 

Attention to Achieve Timeliness and 

Cost-Effectiveness,’’ observed that our 

‘‘rationale for delaying [for three years] 

issuance of a ticket to beneficiaries 

expected to medically improve, based 

on the premise that they will regain 

their capacity to return to work without 

SSA assistance, is not well-supported by 

program experience.’’

We agree with most of these 

recommendations and have proposed 

changes to the ticket eligibility rules set 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57227 

out under subpart B to allow 

beneficiaries with an MIE designation to 

be eligible for a ticket without first 

requiring a continuing disability review 

to be conducted. 

Other Changes We Propose to Make 

In subpart A, we propose to remove 

the rules on how we are phasing in 

implementation of the Ticket to Work 

program, because we already have 

implemented the program on a 

nationwide basis. 

In subpart E, we are adding a new 

requirement, that an employment 

network report to the Program Manager 

each time it requests to take a ticket out 

of assignment. 

Additional Matters for Comment 

We invite comments from the public 

on four additional issues. The first issue 

is whether a beneficiary should be 

eligible for more than one ticket in a 

period of entitlement for SSDI or SSI 

benefits. Our current rules provide for 

only one ticket for each period of 

entitlement. Since we published our 

current rules, we have received a 

number of comments regarding this 

provision. These comments have noted 

that in order to sustain gainful 

employment, many beneficiaries require 

ongoing support services beyond the 

period of time over which Outcome or 

Outcome-Milestone payments are made. 

For example, beneficiaries with physical 

disabilities may require indefinitely 

specialized transportation services to get 

to and from the worksite, and thus 

would benefit from a longer period of 

eligibility for the Ticket to Work 

program. 

The second issue is whether and how 

we should simplify the definition of 

‘‘using a ticket’’ under the Ticket to 

Work program. Ticket-in-use status 

ensures that we will not initiate a 

medical continuing disability review 

(CDR). In the preamble to our current 

rules regarding the suspension of CDRs, 

we indicated that we sought to balance 

two important needs. First, we sought to 

define using a ticket in a way that 

minimizes the disincentive brought on 

by the fear of having benefits terminated 

upon return to work. Second, we need 

to maintain the integrity of the program 

by ensuring that beneficiaries who have 

medically improved do not continue to 

receive disability benefits for an undue 

length of time. Maintaining this balance 

remains our goal. 

Because we only recently have begun, 

through the Program Manager, to 

conduct the reviews to determine if 

beneficiaries who have assigned their 

tickets are meeting the timely progress 

requirements, we do not have enough 

information on which to base any 

changes to our regulations. For this 

reason we are soliciting comments on 

how we might revise the timely progress 

requirements consistent with the intent 

of legislation. Currently beneficiaries 

with Tickets assigned must have 3 

months of work activity at the SGA level 

in the third year their Ticket is assigned 

to maintain Ticket-in-use status. This 

requirement increases to six months in 

the fourth and fifth years. We 

specifically are interested in receiving 

comments on the wisdom of this work 

requirement in cases where the State VR 

agency is providing a beneficiary a 

secondary or post-secondary education. 

For example, should we modify or 

remove the increasing levels of work 

activity currently required to meet ticket 

‘‘in use’’ status for beneficiaries enrolled 

as full-time students. 

The third issue is whether the 

evidence requirements for EN payment 

are unnecessarily burdensome. The 

current rules require ENs to submit 

primary evidence of work and earnings, 

such as a pay stub. ENs report that they 

are unable to comply with our evidence 

requirements in certain situations where 

they believe themselves to be eligible for 

milestone or outcome payments. These 

situations occur when the EN cannot 

obtain the required documentation 

because the ticket user and/or the 

employer are unavailable and/or 

uncooperative, or when the available 

evidence does not satisfy our 

requirements. 

The proposed accelerated outcome 

payment period would reduce this 

administrative burden for SSDI 

beneficiaries, because ENs would be 

required to obtain evidence for the 

shorter 36-month outcome payment 

period rather than the current 60 month 

period. We are currently considering 

ways to further relieve this burden. For 

example, we could reverse the timing of 

payments so that we would pay ENs 

based on a presumption (if other criteria 

are met) and do a reconciliation when 

the earnings information is available to 

SSA that might result in the EN 

repaying monies not due. 

The fourth issue is whether there are 

any circumstances under which SSA 

should pay both Phase 1 and Phase 2 

milestones to an EN for beneficiaries 

who assign their ticket after we have 

made a payment to the State VR agency 

under the cost reimbursement payment 

system. The proposed regulations 

provide for payment of only Phase 2 

milestones in this situation. Our intent 

in that section was to create an 

incentive for EN’s to partner with VR to 

provide ongoing support in order to 

maintain work at or above the SGA 

level. We are inviting comment on the 

circumstances under which paying 

Phase 1 milestones would increase the 

likelihood the beneficiary would 

achieve self-sufficiency, for example 

when the beneficiary lost their job 

subsequent to the VR reimbursement 

payment. 

Issues and Recommendations Not 

Included in this Regulation 

The Ticket to Work program is now 

operating in all States and territories. 

We will continually assess and evaluate 

the program to determine what 

additional changes are needed to 

enhance its effectiveness. We will 

continue to ensure that the Ticket to 

Work program is an effective component 

of our overall strategy for improving 

work opportunities for people with 

disabilities. 

Because of the relative infancy of the 

program and slow growth in 

participation, we have been impeded in 

the collection of objective information 

on EN and beneficiary experiences. The 

proposal discussed in this section 

requires further analysis before we can 

make a confident determination as to its 

efficacy and propose additional program 

modifications. 

Ticket Eligibility for Beneficiaries Who 

Are Ages 16 and 17 

We also have considered 

recommendations regarding the current 

and potential effects of the Ticket to 

Work program on youths with 

disabilities. In the current regulations, 

we concluded that ‘‘participation in an 

employment plan under the Ticket to 

Work program could interfere with their 

pursuit of an education, completion of 

which many believe should be the 

primary focus and goal for school-age 

youth.’’ We also concluded that it 

would be premature to offer tickets to 

SSI beneficiaries who received 

payments prior to age 18, and who have 

since attained age 18 but have not 

undergone a redetermination of their 

eligibility under the adult standard. 

After carefully reviewing this issue, 

we continue to believe that it would be 

inappropriate to offer tickets to these 

groups for the reasons previously stated. 

In the alternative, we have developed a 

youth transition strategy to help young 

disabled SSDI and SSI beneficiaries’

transition to adulthood by maximizing 

their economic self-sufficiency. We plan 

to accomplish this goal by offering and 

testing a variety of new approaches to 

meet the needs of young beneficiaries 

and their families. For example, we 

have implemented a Youth Transition 

Demonstration project where six states 

are developing service delivery systems 

57228 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

to assist youth with disabilities to 

successfully transition from school. In 

addition, on June 24, 2005, we 

published final regulations governing 

the continuation of benefits when a 

beneficiary’s impairment has medically 

improved (70 FR 36494). These rules 

continue benefits to SSI students age 18 

through 21 who do not meet the adult 

disability standard at age 18 as long as 

they are participating in an 

individualized education program (IEP) 

developed under the Individuals with 

Disabilities Education Act (IDEA) before 

their disability under the SSI program 

ended. We believe that our youth 

transition strategy will provide 

enhanced opportunities for youth to 

fully participate in the workforce, 

without interfering with their education. 

Regulatory Procedures 

Clarity of These Proposed Rules 

Executive Order 12866, as amended 

by Executive Order 13258, requires each 

agency to write all rules in plain 

language. In addition to your 

substantive comments on these 

proposed rules, we invite your 

comments on how to make these 

proposed rules easier to understand. 

For example: 

• Have we organized the material to 

suit your needs? 

• Are the requirements in the rules 

clearly stated? 

• Do the rules contain technical 

language or jargon that is not clear? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the rules easier to 

understand? 

• Would more (but shorter) sections 

be better? 

• Could we improve clarity by 

adding tables, lists, or diagrams? 

• What else could we do to make the 

rules easier to understand? 

Executive Order 12866 

We have consulted with the Office of 

Management and Budget and have 

determined that these proposed rules 

meet the criteria for an economically 

significant regulatory action under 

Executive Order 12866, as amended by 

Executive Order 13258. The Office of 

the Chief Actuary estimates that these 

proposed rules, if finalized, will result 

in increased program outlays resulting 

(in millions of dollars) over the next 10 

years. 

Fiscal year SSDI SSI Medicare Medicaid Total 

2006 ..................................................................................... $4 $7 ........................ ........................ $11 

2007 ..................................................................................... 27 14 $7 $1 48 

2008 ..................................................................................... 98 8 22 4 132 

2009 ..................................................................................... 212 10 43 11 276 

2010 ..................................................................................... 266 18 62 23 369 

2011 ..................................................................................... 305 19 78 36 438 

2012 ..................................................................................... 330 37 93 47 507 

2013 ..................................................................................... 338 32 110 52 532 

2014 ..................................................................................... 331 26 126 53 536 

2015 ..................................................................................... 313 19 141 55 528 

Totals: 

2006–10 ........................................................................ 607 57 134 38 835 

2006–15 ........................................................................ 2,223 190 682 283 3,377 

Regulatory Flexibility Act 

We certify that these proposed rules 

would not have a significant economic 

impact on a substantial number of small 

entities because they would primarily 

affect only individuals and those 

entities that voluntarily enter into a 

contractual agreement with us. 

Therefore, a regulatory flexibility 

analysis as provided in the Regulatory 

Flexibility Act, as amended, is not 

required. 

Federalism 

We have reviewed these proposed 

rules under the threshold criteria of 

Executive Order 13132, ‘‘Federalism,’’

and determined that they do not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or the 

distribution of power and 

responsibilities among the various 

levels of government. Public Law 106–

170 established the Ticket to Work 

program that will complement the 

existing State VR program. These 

proposed rules will also complement 

the existing State vocational 

rehabilitation program. 

Paperwork Reduction Act 

These proposed rules contain 

reporting requirements as shown in the 

following table. A 1-hour placeholder 

burden is being assigned to the specific 

reporting requirement(s) contained in 

these rules that are cleared through our 

current Ticket to Work and SelfSufficiency Program Regulations; OMB 

Control Number 0960–0644. 

Section Annual number of 

responses 

Frequency of 

response 

Average burden 

per response 

(minutes) 

Estimated annual 

burden (hours) 

411.145(a); 411.190 ................................................................ .............................. .............................. .............................. 1 

411.325(a) ................................................................................ 96 1 5 8 

411.140(d)(3); 411.365(a); 411.385; and 411.390 .................. .............................. .............................. .............................. 1 

411.575 .................................................................................... .............................. .............................. .............................. 1 

Total .............................................................................. .............................. .............................. .............................. 11 

An Information Collection Request 

has been submitted to OMB for 

clearance. We are soliciting comments 

on the burden estimate; the need for the 

information; its practical utility; ways to 

enhance its quality, utility and clarity; 

and on ways to minimize the burden on 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

Comments should be submitted and/or 

faxed to the Office of Management and 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57229 

Budget at the following address/ 

number: Office of Management and 

Budget, Attn: Desk Officer for SSA, New 

Executive Office Building, Room 10230, 

725 17th St., NW., Washington, DC 

20530. Fax Number: 202–395–6974. 

Comments can be received for up to 

60 days after publication of this notice 

and will be most useful if received 

within 30 days of publication. To 

receive a copy of the OMB clearance 

package, you may call the SSA Reports 

Clearance Officer on 410–965–0454. 

References 

The sources we consulted while 

developing these proposed rules are 

cited in the preamble text. These 

references are included in the 

rulemaking record for these proposed 

rules and are available for inspection by 

interested individuals by making 

arrangements with the contact person 

shown in this preamble. 

Vocational Rehabilitation Providers 

Handbook, Transmittal 17 (available at: 

http://www.ssa.gov/regulations/programresources.htm) 

Ticket to Work and Work Incentives 

Advisory Panel, Annual Report to the 

President and Congress: Year Three, May 

2003 (available at: http://www.ssa.gov/ 

work/panel/panel_documents/ 

reports.html) 

Ticket to Work and Work Incentives 

Advisory Panel, Annual Report to the 

President and Congress: Year Two, August 

2002 (available at: http://www.ssa.gov/ 

work/panel/panel_documents/ 

reports.html) 

Ticket to Work and Work Incentives 

Advisory Panel, Advice Report to the 

Commissioner of the Social Security 

Administration: Design Issues Related to 

the Adequacy of Incentives Study, (June 18, 

2002) (available at: http://www.ssa.gov/ 

work/panel/panel_documents/ 

reports.html) 

Ticket to Work and Work Incentives 

Advisory Panel, Advice Report to the 

Commissioner of the Social Security 

Administration on the Notice of Proposed 

Rulemaking for the Ticket to Work and Self 

Sufficiency Program (July 26, 2001) 

(available at: http://www.ssa.gov/work/ 

panel/panel_documents/reports.html) 

Government Accountability Office, ‘‘Social 

Security Disability: Reviews of 

Beneficiaries’ Disability Status Require 

Continued Attention to Achieve Timeliness 

and Cost-Effectiveness,’’ GAO–03–662 

(July 24, 2003) (available at: http:// 

www.gao.gov/highlights/d03662high.pdf) 

Government Accountability Office, ‘‘SSA 

Disability: Other Programs May Provide 

Lessons for Improving Return-to-Work 

Efforts’’, GAO–01–153 (January 12, 2001) 

(available at: http://www.gao.gov/ 

new.items/d01153.pdf) 

Disability Research Institute, Adequacy of 

Incentives Advisory Group, 

Recommendations for Improving 

Implementation of the Ticket to Work and 

Self-Sufficiency Program (Regulatory and 

Administrative Changes) (Interim Report 

No. 1) (September 2003) (available at: 

http://www.dri.uiuc.edu/research/p03– 

08h/default.htm) 

Mathematica Policy Research, Evaluation of 

the Ticket to Work Program; Initial 

Evaluation Report, (February 2004) 

(available at: http://www.mathematicampr.com/publications/PDFs/evalttw.pdf) 

These references are included in the 

rulemaking record for these proposed 

rules and are available for inspection by 

interested individuals either at the 

websites listed or by making 

arrangements with the contact person 

shown in this preamble. 

(Catalog of Federal Domestic Program Nos. 

96.001, 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 in 20 CFR Part 411 

Administrative practice and 

procedure, Blind, Disability benefits, 

Old-Age, Survivors, and Disability 

Insurance, Reporting and recordkeeping 

requirements, Social Security, 

Supplemental Security Income, Public 

Assistance programs, Vocational 

Rehabilitation. 

Dated: September 26, 2005. 

Jo Anne B. Barnhart, 

Commissioner of Social Security. 

For the reasons set out in the 

preamble, we are proposing to amend 

subparts A, B, C, E, F and H of part 411 

of chapter III of title 20 of the Code of 

Federal Regulations as set forth below: 

PART 411—THE TICKET TO WORK 

AND SELF-SUFFICIENCY PROGRAM 

1. Revise the authority citation for 

part 411 to read as follows: 

Authority: Secs. 702(a)(5) and 1148 of the 

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

1320b–19); Sec. 101(b)–(e), Pub. L. 106–170, 

113 Stat. 1860, 1873 (42 U.S.C. 1320b–19 

note). 

Subpart A—[Amended] 

§ 411.110 [Removed] 

2. Remove § 411.110. 

Subpart B—[Amended] 

3. In § 411.120, revise paragraphs (b) 

and (c) to read as follows: 

§ 411.120 What is a ticket under the Ticket 

to Work program? 

* * * * * 

(b) The left side of the ticket includes 

the beneficiary’s name, ticket number, 

claim account number, and the date we 

issued the ticket. The ticket number is 

12 characters and comprises the 

beneficiary’s own social security 

number, the letters ‘‘TW,’’ and a number 

(1, 2, etc.) in the last position signifying 

that this is the first ticket, second ticket, 

etc., that the beneficiary has received. 

(c) The right side of the ticket 

includes the signature of the 

Commissioner of Social Security and 

provides a description of the Ticket to 

Work program. The description of the 

program will tell you how you may offer 

the ticket to an EN or State VR agency. 

The description will also tell you how 

the EN provides services to you. 

4. In § 411.125 remove paragraph 

(a)(3) and revise paragraph (a)(2)(ii)(C) 

to read as follows: 

§ 411.125 Who is eligible to receive a ticket 

under the Ticket to Work program? 

(a) * * * 

(2) * * * 

(ii) * * * 

(C) Your monthly Federal cash 

benefits based on disability or blindness 

under title XVI are not suspended (see 

subpart M of part 416 of this chapter for 

our rules on suspension of title XVI 

benefit payments). 

* * * * * 

5. Revise § 411.130 to read as follows: 

§ 411.130 How will we distribute tickets 

under the Ticket to Work program? 

We will give a ticket to you if you are 

eligible to receive a ticket under 

§ 411.125. 

6. Revise § 411.135 to read as follows: 

§ 411.135 What do I do when I receive a 

ticket? 

Your participation in the Ticket to 

Work program is voluntary. When you 

receive your ticket, you are free to 

choose when and whether to assign it 

(see § 411.140 for information on 

assigning your ticket). If you want to 

participate in the program, you can take 

your ticket to any EN you choose or to 

your State VR agency. You may choose 

to assign your ticket to an EN by signing 

an individual work plan (see §§ 411.450 

through 411.470). Alternately, you may 

choose to take your ticket and receive 

services from your State VR agency by 

entering into and signing an 

individualized plan for employment. If 

the State VR agency provides services to 

you, it will decide whether to accept 

your ticket. If it accepts your ticket, you 

will have assigned your ticket to the 

State VR agency and it will receive 

payment as an EN. If the State VR 

agency decides to be paid under the cost 

reimbursement payment system, you 

have not assigned your ticket and you 

may assign your ticket after State VR 

services end. 

7. In § 411.140, revise paragraphs (a), 

(d) introductory text, (d)(3), and the first 

57230 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

sentence of paragraph (e) to read as 

follows: 

§ 411.140 When can I assign my ticket and 

how? 

(a) You may assign your ticket during 

a month in which you meet the 

requirements of § 411.125(a)(1) and 

(a)(2). You may also assign your ticket 

during the 90 day period your ticket is 

considered in use after State VR services 

end (see § 411.171(c)(2) and (d)(2)). You 

may assign your ticket to any EN which 

is serving under the program and is 

willing to provide you with services, or 

you may assign your ticket to a State VR 

agency acting as an EN. You may not 

assign your ticket to more than one 

provider of services (i.e., an EN or a 

State VR agency) at a time. You may not 

assign your ticket if you are receiving 

VR services pursuant to an 

individualized plan for employment 

and the State VR agency has chosen the 

cost reimbursement payment system. 

You also may not assign your ticket to 

a State VR agency if a State VR agency 

has provided you services and received 

payment under the cost reimbursement 

payment system with respect to the 

services provided to you (see 

§ 411.585(b)). 

* * * * * 

(d) In order for you to assign your 

ticket to an EN or State VR agency 

acting as an EN, all the following 

requirements must be met: 

* * * * * 

(3) A representative of the EN must 

submit a copy of the signed IWP to the 

PM, or a representative of the State VR 

agency, acting as an EN, must submit 

the completed and signed form (as 

described in § 411.385(a) and (b)) to the 

PM. 

* * * * * 

(e) If all of the requirements in 

paragraph (d) of this section are met, we 

will consider your ticket assigned to the 

EN or State VR agency acting as an EN. 

* * * * * 

8. In § 411.145, revise the section as 

follows: 

§ 411.145 When can my ticket be taken out 

of assignment? 

(a) If you assigned your ticket to an 

EN or a State VR agency acting as an EN, 

you may take your ticket out of 

assignment for any reason. You must 

notify the PM in writing that you wish 

to take your ticket out of assignment. 

The ticket will be no longer assigned to 

that EN or State VR agency acting as an 

EN, effective with the first day of the 

month following the month in which 

you notify the PM in writing that you 

wish to take your ticket out of 

assignment. You may reassign your 

ticket under the rules in § 411.150. 

(b) If your EN goes out of business or 

is no longer approved to participate as 

an EN in the Ticket to Work program, 

the PM will take your ticket out of 

assignment with that EN. The ticket will 

be no longer assigned to that EN 

effective on the first day of the month 

following the month in which the EN 

goes out of business or is no longer 

approved to participate in the Ticket to 

Work program. You will be sent a notice 

informing you that your ticket is no 

longer assigned to that EN. In addition, 

if your EN is no longer willing or able 

to provide you with services, or if your 

State VR agency acting as an EN stops 

providing services to you because you 

have been determined to be ineligible 

for VR services under 34 CFR 361.42, 

the EN or State VR agency acting as an 

EN, may ask the PM to take your ticket 

out of assignment with that EN or State 

VR agency. The ticket will be no longer 

assigned to that EN or State VR agency 

acting as an EN effective on the first day 

of the month following the month in 

which the EN or State VR agency acting 

as an EN makes a request to the PM that 

the ticket be taken out of assignment. 

You will be sent a notice informing you 

that your ticket is no longer assigned to 

that EN or State VR agency acting as an 

EN. You may reassign your ticket under 

the rules in § 411.150. 

(c) For information about how taking 

a ticket out of assignment may affect 

medical reviews that we conduct to 

determine if you are still disabled under 

our rules, see §§ 411.171(c) and 411.220. 

9. In § 411.150, revise the section 

heading and the third and fourth 

sentences of paragraph (a) and add a 

new fifth sentence to paragraph (a), and 

revise paragraph (b)(3) to read as 

follows: 

§ 411.150 Can I reassign my ticket? 

(a) * * * If you previously assigned 

your ticket to an EN, you may reassign 

your ticket to a different EN which is 

serving under the program and is 

willing to provide you with services, or 

you may reassign your ticket to a State 

VR agency acting as an EN. If you 

previously assigned your ticket to a 

State VR agency, you may reassign your 

ticket to another State VR agency acting 

as an EN or to an EN which is serving 

under the program and is willing to 

provide you with services. You may not 

reassign your ticket to a State VR agency 

if we previously made payment to a 

State VR under the cost reimbursement 

payment system with respect to you, 

and you were considered to be ‘‘using 

a ticket’’ while you received services 

from the State VR agency. 

(b) * * * 

(3) You must meet the requirements of 

§ 411.125(a)(1) and (2) on or after the 

day you and a representative of the new 

EN sign your IWP or you and a 

representative of the State VR agency 

sign your IPE and the required form. 

You may reassign your ticket within 90 

days of the effective date your ticket was 

no longer assigned, without meeting the 

requirements of § 411.125(a)(2). 

* * * * * 

10. In § 411.155, revise paragraphs 

(a)(2) and (a)(3), and add a new 

paragraph (a)(4) to reads as follows: 

§ 411.155 When does my ticket terminate? 

(a) * * * 

(2) If you are entitled to widow’s or 

widower’s insurance benefits based on 

disability (see §§ 404.335 and 404.336 of 

this chapter), the month in which you 

attain full retirement age; 

(3) If you are eligible for benefits 

under title XVI based on disability or 

blindness, the month following the 

month in which you attain age 65; or 

(4) The month after the month in 

which your outcome payment period 

ends (see § 411.500(b)). 

* * * * * 

Subpart C—[Amended] 

11. In § 411.165, revise the section 

heading and the second sentence to read 

as follows: 

§ 411.165 How does using a ticket under 

the Ticket to Work program affect my 

continuing disability reviews? 

* * * However, we will not begin a 

continuing disability review during the 

period in which you are using a ticket. 

* * * * * 

12. Amend § 411.166 by revising the 

second sentence of paragraph (b), 

adding a new sentence between the first 

and second sentences in paragraph (d), 

revising the second sentence in 

paragraph (g), and revising paragraph 

(h) to read as follows: 

§ 411.166 Glossary of terms used in this 

subpart. 

* * * * * 

(b) * * * You may be eligible for an 

extension period if the ticket is in use 

and no longer assigned to an 

Employment Network (EN) or State VR 

agency acting as an EN (see § 411.220). 

* * * * * 

(d) * * * If you have a ticket which 

is available for assignment and are 

receiving VR services pursuant to an 

individualized plan for employment 

and the state VR agency has chosen the 

cost reimbursement payment system, 

the term ‘‘initial 24-month period’’

means the 24-month period that begins 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57231 

with the month following the month 

described in § 411.170(b). * * * 

* * * * * 

(g) * * * We do not count any month 

during which your ticket is not assigned 

to an EN or State VR agency acting as 

an EN, or any month outside of the 

period during which you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

from state VR agency that has chosen 

the cost reimbursement payment 

system. 

(h) Using a ticket means: (1) You have 

assigned a ticket to an EN or a State VR 

agency that has elected to serve you as 

an EN and are making timely progress 

toward self-supporting employment as 

defined in § 411.180ff. (See § 411.171 for 

a discussion of when the period of using 

a ticket ends) or 

(2) You have a ticket that would 

otherwise be available for assignment 

and are receiving VR services pursuant 

to an individualized plan for 

employment and the state VR agency 

has chosen to be paid, with respect to 

services that it provides to you, under 

the cost reimbursement payment 

system. You must also be making timely 

progress as defined in § 411.180ff. 

13. Remove the undesignated 

centered heading before § 411.170. 

14. Revise § 411.170 to read as 

follows: 

§ 411.170 When does the period of using 

a ticket begin? 

(a) The period of using a ticket begins 

on the effective date of the assignment 

of your ticket to an EN or state VR 

agency under § 411.140. 

(b) If you have a ticket that would 

otherwise be available for assignment 

and are receiving VR services pursuant 

to an individualized plan for 

employment and the state VR agency 

has chosen the cost reimbursement 

payment system, the period of using a 

ticket begins on the later of—

(1) The effective date of your IPE; or 

(2) The first day your ticket would 

otherwise have been assignable if you 

had not been receiving services from the 

State VR agency under costreimbursement. 

15. Revise § 411.171 to read as 

follows: 

§ 411.171 When does the period of using 

a ticket end? 

The period of using a ticket ends with 

the earliest of the following—

(a) The month before the month in 

which the ticket terminates as a result 

of one of the events listed in § 411.155; 

(b) The day before the effective date 

of a decision under in § 411.190, in 

§ 411.195, in § 411.200 or in § 411.205 

that you are no longer making timely 

progress toward self-supporting 

employment; 

(c) The close of the three-month 

extension period which begins with the 

first month in which your ticket is no 

longer assigned to an EN or State VR 

agency acting as an EN (see § 411.145), 

unless you reassign your ticket within 

the three-month extension period (see 

§ 411.220 for an explanation of the 

three-month extension period). 

(d) The close of the 90-day period 

specified in § 411.150(b)(3); 

(e) If you are a title II beneficiary (or 

a concurrent beneficiary under title II 

and title XVI)—

(1) The 36th month for which an 

outcome payment is made to an EN 

(including a State VR agency acting as 

an EN) under subpart H of this part; or 

(2) If the State VR agency elected 

payment under subpart V of part 404 (or 

subpart V of part 416) of this chapter, 

for services provided to you, the 90th 

day after the services end; or 

(f) If you are a title XVI beneficiary—

(1) The 60th month for which an 

outcome payment is made to an EN 

(including a State VR agency acting as 

an EN) under subpart H of this part; or 

(2) If the State VR agency elected 

payment under subpart V of part 416 of 

this chapter, for services provided to 

you, the 90th day after the services end. 

16. In § 411.175, revise the section 

heading and the first and fourth 

sentences of paragraph (a) to read as 

follows: 

§ 411.175 What if a continuing disability 

review is begun before my ticket is in use? 

(a) If we begin a continuing disability 

review before the date on which your 

ticket is in use, you may still assign the 

ticket and receive services from an EN 

or a State VR agency acting as an EN 

under the Ticket to Work program, or 

you may still receive services from a 

State VR agency that elects to be paid 

under the cost reimbursement payment 

system. * * * However, if your ticket 

was in use before we determined that 

you are no longer disabled, in certain 

circumstances you may continue to 

receive benefit payments (see 

§§ 404.316(c), 404.337(c), 404.352(d), 

and 416.1338 of this chapter). * * * 

* * * * * 

17. Remove the undesignated 

centered heading before § 411.180. 

18. In § 411.180, revise paragraph 

(b)(1) and the first sentence of paragraph 

(c)(1) to read as follows: 

§ 411.180 What is timely progress toward 

self-supporting employment? 

* * * * * 

(b) * * * 

(1) Initial 24-month period means that 

the 24-month period that begins with 

the month following the month in 

which you first assigned your ticket, or 

the first month you have a ticket that 

would otherwise be available for 

assignment and are receiving services 

under an IPE from if the state VR agency 

that has chosen the cost reimbursement 

payment system. (See §§ 411.220(e) and 

411.225(c) for when a new initial 24- 

month period may be established for 

you). We do not count any month 

during which the ticket is not assigned 

to an EN or State VR agency acting as 

an EN, or any month in which you have 

a ticket which would otherwise be 

available for assignment and are 

receiving services from state VR agency 

that has chosen the cost reimbursement 

payment system. 

* * * * * 

(c) Guidelines. * * * 

(1) During the initial 24-month period 

after you assign your ticket, or after you 

have a ticket which would otherwise be 

available for assignment and are 

receiving services under an IPE from a 

state VR agency that has chosen the cost 

reimbursement system, you must be 

actively participating in your plan. 

* * * 

* * * * * 

19. In § 411.190, revise the first and 

third sentences of paragraph (a)(1) and 

the first sentence of paragraph (a)(2)(ii) 

to read as follows: 

§ 411.190 How is it determined if I am 

meeting the timely progress guidelines? 

(a) During the initial 24-month period. 

(1) General. During the initial 24-month 

period you assigned your ticket, or after 

you have a ticket which would 

otherwise be available for assignment 

and are receiving services under an IPE 

from a state VR agency that has chosen 

the cost reimbursement system, you 

must be actively participating in your 

employment plan as defined in 

§ 411.180(c). * * * If you or your EN or 

State VR agency acting as an EN report 

to the PM that you are temporarily 

unable to participate or are not actively 

participating in your employment plan 

during the initial 24-month period you 

assigned your ticket, or during the 

initial 24-month period or after you 

have a ticket which would otherwise be 

available for assignment and are 

receiving services under an IPE from a 

state VR agency that has chosen the cost 

reimbursement system, the PM will give 

you the choice of placing your ticket in 

inactive status or resuming active 

participation in your employment plan. 

(2) * * * 

(ii) If your ticket is still assigned to an 

EN or State VR agency, acting as an EN, 

57232 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

or you have a ticket which would 

otherwise be available for assignment 

and are receiving services under an IPE 

from a state VR agency that has chosen 

the cost reimbursement system, you 

may reactivate your ticket by submitting 

a written request to the PM. * * * 

* * * * * 

§ 411.191 [Removed] 

19. Remove § 411.191. 

20. Revise § 411.210 paragraphs 

(b)(1)(ii), (b)(2)(ii), (b)(3)(ii), (b)(4)(ii), 

(b)(5)(ii), and the fourth sentences of 

both paragraphs (c)(1) and (c)(2) to read 

as follows: 

§ 411.210 What happens if I do not make 

timely progress toward self-supporting 

employment? 

* * * * * 

(b) * * * 

(1) * * * 

(ii) When you have satisfied this 

requirement, you will be reinstated to 

in-use status, provided that your ticket 

is assigned to an EN or State VR agency 

acting as an EN, or you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system. See paragraph (c) of this section 

for when your reinstatement to in-use 

status will be effective. 

* * * * * 

(2) * * * 

(ii) When you have satisfied this 

requirement, you will be reinstated to 

in-use status, provided that your ticket 

is assigned to an EN or State VR agency 

acting as an EN, or you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system. See paragraph (c) of this section 

for when your reinstatement to in-use 

status will be effective. 

* * * * * 

(3) * * * 

(ii) When you have satisfied this 

requirement, you will be reinstated to 

in-use status, provided that your ticket 

is assigned to an EN or State VR agency 

acting as an EN, or you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system. See paragraph (c) of this section 

for when your reinstatement to in-use 

status will be effective. 

* * * * * 

(4) * * * 

(ii) When you have satisfied this 

requirement, you will be reinstated to 

in-use status, provided that your ticket 

is assigned to an EN or State VR agency 

acting as an EN, or you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system. See paragraph (c) of this section 

for when your reinstatement to in-use 

status will be effective. 

* * * * * 

(5) * * * 

(ii) When you have satisfied this 

requirement, you will be reinstated to 

in-use status, provided that your ticket 

is assigned to an EN or State VR agency 

acting as an EN, or you have a ticket 

which would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system. See paragraph (c) of this section 

for when your reinstatement to in-use 

status will be effective. 

* * * * * 

(c) * * * 

(1) * * * If the PM decides that you 

have satisfied the requirements for reentering in-use status (including the 

requirement that your ticket be assigned 

to an EN or State VR agency acting as 

an EN, or that you have a ticket which 

would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system), you will be reinstated to in-use 

status effective with the date on which 

the PM sends the notice of the decision 

to you. * * * 

(2) * * * If we decide that you have 

satisfied the requirements for reentering in-use status (including the 

requirement that your ticket be assigned 

to an EN or State VR agency acting as 

an EN, or you have a ticket which 

would otherwise be available for 

assignment and are receiving services 

under an IPE from a state VR agency 

that has chosen the cost reimbursement 

system), you will be reinstated to in-use 

status effective with the date on which 

we send the notice of the decision to 

you. 

Subpart E—[Amended] 

21. In § 411.325, revise paragraph (a) 

to read as follows: 

§ 411.325 What reporting requirements are 

placed on an EN as a participant in the 

Ticket to Work program? 

* * * * * 

(a) Report to the PM in writing each 

time the EN accepts a ticket for 

assignment or the EN no longer wants 

a ticket assigned to it. 

* * * * * 

Subpart F—[Amended] 

22. Revise § 411.350 to read as 

follows: 

§ 411.350 Must a State VR agency 

participate in the Ticket to Work program? 

A State VR agency may elect, but is 

not required, to participate in the Ticket 

to Work program as an EN. The State VR 

agency may elect on a case-by-case basis 

to participate in the Ticket to Work 

program as an EN, or it may elect to 

provide services to beneficiaries and be 

paid under the cost reimbursement 

payment system, referenced in 

§§ 404.2101 and 416.2201 of this 

chapter. 

23. In § 411.355, revise the section 

heading, the third sentence in paragraph 

(a) and the last sentence of paragraph (c) 

to read as follows: 

§ 411.355 What payment options does a 

State VR agency have? 

(a) * * * On a case-by-case basis, the 

State VR agency may participate 

either—

* * * * * 

(c) * * * When serving a beneficiary 

who does not have a ticket that can be 

assigned pursuant to § 411.140 of this 

chapter, the State VR agency may seek 

payment only under the cost 

reimbursement payment system. 

* * * * * 

§ 411.360 [Removed] 

24. Remove § 411.360. 

25. In § 411.365, revise the section 

heading and paragraph (a) to read as 

follows: 

§ 411.365 How does a State VR agency 

notify us about its choice of a payment 

system for use when functioning as an EN? 

(a) The State VR agency must send us 

a letter telling us which EN payment 

system it will use when it functions as 

an EN with respect to a beneficiary who 

has a ticket. 

* * * * * 

26. Revise § 411.370 to read as 

follows: 

§ 411.370 Does a State VR agency ever 

have to function as an EN? 

No. A State VR agency may choose to 

be paid under the cost reimbursement 

system under § 411.355. 

27. In § 411.385, revise paragraph (a) 

introductory text, remove paragraph 

(a)(1) and redesignate paragraphs (a)(2) 

and (a)(3) as (a)(1) and (a)(2), 

respectively to read as follows: 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57233 

§ 411.385 What does a State VR agency do 

if a beneficiary who is eligible for VR 

services has a ticket that is available for 

assignment or reassignment? 

(a) Once the State VR agency 

determines that a beneficiary is eligible 

for VR services, the beneficiary and a 

representative of the State VR agency 

must agree to and sign the 

individualized plan for employment 

(IPE) required under section 102(b) of 

the Rehabilitation Act of 1973, as 

amended (29 U.S.C. 722(b)). The State 

VR agency must submit the following 

information to the PM in order for the 

beneficiary’s ticket to be considered in 

use: 

* * * * * 

28. Revise § 411.390 to read as 

follows: 

§ 411.390 What does a State VR agency do 

if a beneficiary to whom it is already 

providing services has a ticket that is 

available for assignment? 

If a beneficiary who is receiving 

services from the State VR agency under 

an existing IPE becomes eligible for a 

ticket that is available for assignment, 

the State VR agency must submit the 

information required in § 411.385(a) to 

the PM. We require this information in 

order for the beneficiary’s ticket to be 

considered in use. If a beneficiary who 

is receiving services from the State VR 

agency under an existing IPE becomes 

eligible for a ticket that is available for 

assignment and decides not to assign 

the ticket to the State VR agency, the 

State VR agency is limited to the cost 

reimbursement payment system. 

Subpart H—[Amended] 

29. In § 411.500, revise paragraphs (b), 

(c), (e), and (f) to read as follows: 

§ 411.500 Definitions of terms used in this 

subpart. 

* * * * * 

(b) Outcome Payment Period means a 

period of 36 months (or a period of 60 

months for a title XVI disability 

beneficiary who is not concurrently a 

title II disability beneficiary), not 

necessarily consecutive, for which 

Social Security disability benefits and 

Federal SSI cash benefits are not 

payable to the beneficiary because of the 

performance of substantial gainful 

activity (SGA) or by reason of earnings 

from work activity. The outcome 

payment period begins with the first 

month, after the month the ticket was 

first assigned to an EN (or to a State VR 

agency acting as an EN), for which such 

benefits are not payable to the 

beneficiary because of the performance 

of SGA or by reason of earnings from 

work activity. The outcome payment 

period ends as follows: 

(1) For a title II disability beneficiary 

(including a concurrent title II/title XVI 

disability beneficiary), the outcome 

payment period ends with the 36th 

month, consecutive or otherwise, 

ending after the date on which the ticket 

was first assigned to an EN (or to a State 

VR agency acting as an EN), for which 

Social Security disability benefits and 

Federal SSI cash benefits are not 

payable to the beneficiary because of the 

performance of SGA or by reason of 

earnings from work activity. 

(2) For a title XVI disability 

beneficiary who is not concurrently a 

title II disability beneficiary, the 

outcome payment period ends with the 

60th month, consecutive or otherwise, 

ending after the date on which the ticket 

was first assigned to an EN (or to a State 

VR agency acting as an EN), for which 

Federal SSI cash benefits are not 

payable to the beneficiary by reason of 

earnings from work activity. 

(c) Outcome Payment System is a 

system providing a schedule of 

payments to an EN (or a State VR agency 

acting as an EN) for each month, during 

an beneficiary’s outcome payment 

period, for which Social Security 

disability benefits and Federal SSI cash 

benefits are not payable to the 

beneficiary because of SGA or earnings 

from work activity. 

* * * * * 

(e) Outcome Payment Month means a 

month, during the beneficiary’s outcome 

payment period, for which Social 

Security disability benefits and Federal 

SSI cash benefits are not payable to the 

beneficiary because of SGA or earnings 

from work activity. 

(f) Outcome-Milestone Payment 

System is a system providing a schedule 

of payments to an EN (or State VR 

agency acting as an EN) that includes, 

in addition to any outcome payments 

which may be made during the 

beneficiary’s outcome payment period, 

payments for completion by a disability 

beneficiary of up to four Phase I 

milestones and up to eleven Phase 2 

milestones (or up to eighteen Phase 2 

milestones for a title XVI disability 

beneficiary who is not a concurrent title 

II disability beneficiary) directed toward 

the goal of self-supporting employment. 

The milestones for which payments may 

be made must occur prior to the 

beginning of the beneficiary’s outcome 

payment period. 

(1) Phase I Milestones are based on 

the beneficiary achieving a level of 

earnings that reflects initial efforts at 

self-supporting employment. They are 

based on the earnings threshold that we 

use to establish a trial work period 

service month as defined in 

§ 404.1592(b) of this chapter. We use 

this threshold amount as defined in 

§ 404.1592(b) of this chapter in order to 

measure whether the beneficiary’s 

earnings level meets the milestone 

objective. 

(2) Phase 2 Milestones are based on 

the beneficiary achieving a level of 

earnings that reflects partial efforts at 

self-supporting employment. They are 

based on the earnings threshold that we 

use to determine if work activity is SGA. 

We use the SGA earnings threshold 

amount in § 404.1574(b)(2) of this 

chapter. We use the SGA threshold 

amounts in order to measure whether 

the beneficiary’s earnings level meets 

the milestone objective. 

30. Revise § 411.505 to read as 

follows: 

§ 411.505 How is an EN paid? 

An EN (including a State VR agency 

acting as an EN) can elect to be paid 

under either the outcome payment 

system or the outcome-milestone 

payment system. The EN will elect a 

payment system at the time the EN 

enters into an agreement with SSA. (For 

State VR agencies, see § 411.365.) The 

EN (or State VR agency acting as an EN) 

may periodically change its elected EN 

payment system as described in 

§ 411.515. 

31. In § 411.510, revise paragraph (c) 

to read as follows: 

§ 411.510 How is the State VR agency paid 

under the Ticket to Work program? 

* * * * * 

(c) If a beneficiary who is receiving 

services from the State VR agency under 

an existing individualized plan for 

employment becomes eligible for a 

ticket that is available for assignment, 

the State VR agency will notify the PM 

of the payment system election for such 

beneficiary. 

32. In § 411.515, revise paragraph (b) 

to read as follows: 

§ 411.515 Can the EN change its elected 

payment system? 

* * * * * 

(b) After an EN (or a State VR agency) 

first elects an EN payment system, the 

EN (or State VR agency) can choose to 

make one change in its elected payment 

system at any time prior to the close of 

the 12th month following the month in 

which the EN (or State VR agency) first 

elects an EN payment system. 

* * * * * 

33. In § 411.525, revise paragraphs 

(a)(1)(i), (a)(2), (b) and (c) to read as 

follows: 

57234 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

§ 411.525 How are the EN payments 

calculated under each of the two EN 

payment systems? 

(a) * * * 

(1)(i) Under the outcome payment 

system, we can pay up to 36 outcome 

payments to the EN (or State VR agency 

acting as an EN) for a title II disability 

beneficiary (including a concurrent title 

II/title XVI disability beneficiary). We 

can pay up to 60 outcome payments to 

the EN (or State VR agency acting as an 

EN) for a title XVI disability beneficiary 

who is not concurrently a title II 

disability beneficiary. For each month 

during the beneficiary’s outcome 

payment period for which Social 

Security disability benefits and Federal 

SSI cash benefits are not payable to the 

beneficiary because of SGA or earnings 

from work activity, the EN (or the State 

VR agency acting as an EN) is eligible 

for a monthly outcome payment. 

Payment for an outcome payment 

month under the outcome payment 

system is equal to 67 percent of the 

payment calculation base for the 

calendar year in which such month 

occurs, rounded to the nearest whole 

dollar (see § 411.550). 

* * * * * 

(2) Under the outcome-milestone 

payment system, we can pay the EN (or 

State VR agency acting as an EN) for up 

to four Phase 1 milestones achieved by 

a disability beneficiary who has 

assigned his or her ticket to the EN (or 

State VR agency acting as an EN). We 

can also pay the EN (or State VR agency 

acting as an EN) up to eleven Phase 2 

milestones achieved by a title II 

disability beneficiary (including a 

concurrent title II/title XVI disability 

beneficiary) or up to eighteen 

milestones achieved by a title XVI 

disability beneficiary (who is not 

concurrently a title II disability 

beneficiary) who has assigned his or her 

ticket to the EN (or State VR agency 

acting as an EN). The milestones for 

which payment may be made must 

occur prior to the beginning of the 

beneficiary’s outcome payment period 

and meet the requirements of § 411.535. 

In addition to the milestone payments, 

monthly outcome payments can be paid 

to the EN (or State VR agency acting as 

an EN) during the outcome payment 

period. If the beneficiary’s outcome 

payment period begins before the 

beneficiary has achieved all Phase 1 and 

Phase 2 milestones, then we will pay 

the EN a final milestone payment equal 

to the total amount of the remaining 

unpaid milestones, based on the 

payment calculation base for the 

calendar year in which the first month 

of the beneficiary’s outcome period 

occurs, rounded to the nearest whole 

dollar. 

(b) The outcome-milestone payment 

system is designed so that the total 

payments to the EN (or the State VR 

agency acting as an EN) for a beneficiary 

are less than the total amount that 

would have been paid if the EN were 

paid under the outcome payment 

system. Under the outcome-milestone 

payment system, the total payment to 

the EN (or the state VR agency acting as 

an EN) is about 90 percent of the total 

that would have been potentially 

payable under the outcome payment 

system for the same beneficiary. 

(c) We will pay an EN (or State VR 

agency acting as an EN) to whom the 

beneficiary has assigned a ticket for 

milestones or outcomes achieved only 

in months prior to the month in which 

the ticket terminates (see § 411.155). We 

will not pay a milestone or outcome 

payment to an EN (or State VR agency 

acting as an EN) based on an 

beneficiary’s work activity or earnings 

in or after the month in which the ticket 

terminates. 

§ 411.530 [Removed] 

34. Remove § 411.530. 

35. Revise § 411.535 to read as 

follows: 

§ 411.535 What are the milestones for 

which an EN can be paid? 

(a) Under the outcome-milestone 

payment system, an EN can be paid up 

to four Phase 1 milestones achieved by 

title II and title XVI beneficiaries and up 

to eleven Phase 2 milestones achieved 

by a title II beneficiary or up to eighteen 

milestones for a title XVI beneficiary 

who has assigned his or her ticket to the 

EN (or State VR agency acting as an EN). 

The milestones must occur after the date 

on which the ticket was first assigned 

and after the beneficiary starts to work 

prior to the beginning of the 

beneficiary’s outcome period (see 

§ 411.500(b)). 

(1) There are four Phase 1 milestones. 

The first Phase 1 milestone is met when 

a beneficiary has worked at least two 

weeks and earned 50% of the amount of 

a trial work period service month as 

defined in § 404.1592(b) of this chapter. 

The second Phase 1 milestone is met 

after a beneficiary has retained a job for 

three months and has gross earnings in 

each of those months equal to a trial 

work period service month as defined in 

§ 404.1592(b) of this chapter. The third 

Phase 1 milestone is met after a 

beneficiary has retained a job for six 

months and has gross earnings in each 

of those months equal to a trial work 

period service month as defined in 

§ 404.1592(b) of this chapter. The fourth 

Phase 1 milestone is met after a 

beneficiary has retained a job for nine 

months and has gross earnings in each 

of those months equal to a trial work 

period service month as defined in 

§ 404.1592(b) of this chapter. 

(2) A Phase 2 milestone is met for 

each calendar month in which the 

beneficiary has worked and has gross 

earnings from employment (or net 

earnings from self-employment as 

defined in § 404.1080 of this chapter) in 

that month that are more than the SGA 

threshold amount. 

(3) If the beneficiary does not achieve 

all Phase 1 and Phase 2 milestones prior 

to the beginning of the beneficiary’s 

outcome period, then we will pay the 

EN ( or State VR agency acting as an EN) 

the final milestone payment equal to the 

total amount of the remaining unpaid 

Phase 1 and Phase 2 milestones. This 

payment will be based on the payment 

calculation base for the calendar year in 

which the first month of the 

beneficiary’s outcome period occurs, 

rounded to the nearest whole dollar. 

(4) If the State VR agency has already 

received payment for services under the 

cost-reimbursement system, the EN can 

be paid for up to eleven Phase 2 

milestones achieved by title II 

beneficiaries or for up to eighteen 

milestones achieved by title XVI 

beneficiaries. In this situation, we 

would not pay Phase 1 milestones under 

§ 411.135(a)(1). 

(b) An EN (or State VR agency acting 

as an EN) can be paid for a milestone 

only if the milestone is attained after a 

beneficiary has assigned his or her ticket 

to the EN. See § 411.575 for other 

milestone payment criteria. 

36. Revise § 411.540 to read as 

follows: 

§ 411.540 What are the payment amounts 

for each of the milestones? 

(a) The payment amount for each of 

the Phase I milestones for both title II 

and title XVI is equal to 120 percent of 

the payment calculation base for title II 

(as defined in § 411.500(a)(1)) for the 

calendar year in which the month of 

attainment of the milestone occurs, 

rounded to the nearest whole dollar. 

(b) The payment amount for each of 

the Phase 2 milestones: 

(i) For title II beneficiaries (including 

concurrent title II/title XVI disability 

beneficiaries) is equal to 36 percent of 

the monthly payment calculation base 

as defined in § 411.500(a)(1) for the 

calendar year in which the month of 

attainment of the milestone occurs, 

rounded to the nearest whole dollar; 

(ii) For title XVI beneficiaries (who 

are not concurrently title II disability 

beneficiaries) is equal to 36 percent of 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57235 

the monthly payment calculation base 

as defined in § 411.500(a)(2) for the 

calendar year in which the month of 

attainment of the milestone occurs, 

rounded to the nearest whole dollar. 

37. Revise § 411.545 to read as 

follows: 

§ 411.545 What are the payment amounts 

for outcome payment months under the 

outcome-milestone payment system? 

(a) The amount of each monthly 

outcome payment under the outcomemilestone payment system: 

(1) For title II beneficiaries (including 

concurrent title II/title XVI disability 

beneficiaries) is equal to 36 percent of 

the payment calculation base as defined 

in § 411.500(a)(1) for the calendar year 

in which the month occurs, rounded to 

the nearest whole dollar; 

(2) For title XVI beneficiaries (who are 

not concurrently title II/title XVI 

disability beneficiaries) is equal to 36 

percent of the payment calculation base 

as defined in § 411.500(a)(2) for the 

calendar year in which the month 

occurs, rounded to the nearest whole 

dollar. 

(b) The following chart provides an 

example of how an EN would receive 

milestone and outcome payments. 

PROPOSED OUTCOME—MILESTONE PAYMENT TABLE

[2005 figures for illustration only] 

Payment type Beneficiary earnings SSDI amount of 

payment 

Title SSI amount of 

payment 

Phase 1 (120% of SSDI PCB) * 

Milestone 1 ................................................ $295 for two weeks work ................................. $1,042 $1,042 

Milestone 2 ................................................ $590/mo. × 3 months work (cumulative) ......... $1,042 $1,042 

Milestone 3 ................................................ $590/mo. × 6 months work (cumulative) ......... $1,042 $1,042 

Milestone 4 ................................................ $590/mo. × 9 months work (cumulative) ......... $1,042 $1,042 

Total Phase 1 ..................................... ........................................................................... $4,168 $4,168 

Phase 2 (36% of PCB) ..................................... Gross Earnings>$830.

SSDI Milestones 1–11 ...................................... ........................................................................... $313 × 11 = $3,443 

SSI Milestones 1–18 ......................................... ........................................................................... .................................... $184 × 18 = $3,312 

Total Phase 1 + 2 Milestones ............ ........................................................................... $7,611 * $7,480 * 

Outcome Payments (36% of PCB) 

SSDI = 1–36 .............................................. >$830/and monthly cash benefit not payable .. $313 × 36 = $11,268 

SSI = 1–60 ................................................. Sufficient earnings for federal cash benefits = 

‘‘0’’.

.................................... $184 × 60 = $11,040 

Total milestone and outcome payments............................................................................ $18,879 $18,520 

* A Lump sum milestone is the remaining total milestones unpaid if the outcome period is reached before all the milestones are achieved. This 

can be any number of the remaining milestones and is paid after the first outcome payment is achieved. 

38. Revise § 411.550 to read as 

follows: 

§ 411.550 What are the payment amounts 

for outcome payment months under the 

outcome payment system? 

Under the outcome payment system, 

the payment for an outcome payment 

month is equal to 67 percent of the 

payment calculation base for the 

calendar year in which the month 

occurs, rounded to the nearest whole 

dollar (see charts III and IV for an 

example of the proposed Outcome 

payment system for title II and title 

XVI). 

39. Revise § 411.555 to read as 

follows: 

§ 411.555 Can the EN keep the milestone 

and outcome payments even if the 

beneficiary does not achieve all outcome 

months? 

(a) Yes. The EN (or State VR agency 

acting as an EN) can keep each 

milestone and outcome payment for 

which the EN (or State VR agency acting 

as an EN) is eligible, even though the 

title II beneficiary does not achieve all 

36 outcome months or the title XVI 

beneficiary does not achieve all 60 

outcome months. 

(b) Except as provided in paragraph 

(c) of this section, payments which we 

make or deny to an EN (or a State VR 

agency acting as an EN) may be subject 

to adjustment (including recovery, as 

appropriate) if we determine that more 

or less than the correct amount was 

paid. This may happen, for example, 

because we determine that the payment 

determination was in error or because of 

an allocation of payment under 

§ 411.560. 

(c) If we determine that an 

overpayment or underpayment to an EN 

has occurred, we will notify the EN (or 

State VR agency acting as an EN) of the 

adjustment. We will not seek an 

adjustment if a determination or 

decision about a beneficiary’s right to 

benefits causes an overpayment to the 

EN. Any dispute which the EN (or State 

VR agency) has regarding the 

adjustment may be resolved under the 

rules in § 411.590(a) and (b). 

40. Revise § 411.560 to read as 

follows: 

§ 411.560 Is it possible to pay a milestone 

or outcome payment to more than one EN? 

Yes. It is possible for more than one 

EN (including a State VR agency acting 

as an EN) to receive payment based on 

the same milestone or outcome. If the 

beneficiary has assigned the ticket to 

more than one EN (or State VR agency 

acting as an EN) at different times, and 

more than one EN (or State VR agency) 

requests payment for the same 

milestone or outcome payment under its 

elected payment system, the PM will 

make a determination of the allocation 

of payment to each EN (or State VR 

agency acting as an EN). The PM will 

make this determination based upon the 

contribution of the services provided by 

each EN (or State VR agency acting as 

an EN) toward the achievement of the 

57236 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 

outcomes or milestones. Outcome and 

milestone payments will not be 

increased because the payments are 

shared between two or more ENs 

(including a State VR agency acting as 

an EN). 

41. Revise § 411.565 to read as 

follows: 

§ 411.565 What happens if two or more 

ENs qualify for payment on the same ticket 

but have elected different EN payment 

systems? 

We will pay each EN (or State VR 

acting as an EN) according to its elected 

EN payment system in effect at the time 

the beneficiary assigned the ticket to the 

EN (or the State VR agency acting as an 

EN). 

42. Add § 411.566 to read as follows: 

§ 411.566 May an EN use outcome or 

milestone payments to pay bonuses to the 

beneficiary? 

Yes, an EN may use outcome or 

milestone payments to provide bonuses 

to the beneficiary, subject to other 

applicable Federal, State, or local laws 

that may govern an EN’s use of these 

payments. 

43. In § 411.575, revise the 

introductory text; paragraph (a)(1) 

introductory text; and paragraphs 

(a)(1)(i), (a)(2), (b)(1) introductory text, 

(b)(1)(ii), and (b)(2) to read as follows: 

§ 411.575 How does the EN request 

payment for milestone or outcome payment 

months achieved by a beneficiary who 

assigned a ticket to the EN? 

The EN (or State VR agency acting as 

an EN) will send its request for 

payment, evidence of the beneficiary’s 

work or earnings, and other information 

to the PM. 

(a) Milestone payments. (1) We will 

pay the EN (or State VR agency acting 

as an EN) for milestones only if

(i) The outcome-milestone payment 

system was the EN’s (or State VR 

agency’s) elected payment system in 

effect at the time the beneficiary 

assigned a ticket to the EN (or the State 

VR agency acting as an EN); 

* * * * * 

(2) The EN (or State VR agency acting 

as an EN) must request payment for 

each milestone achieved by a 

beneficiary who has assigned a ticket to 

the EN (or State VR agency acting as an 

EN). The request must include evidence 

that the milestone was achieved and 

other information as we may require to 

evaluate the EN’s (or State VR agency’s) 

request. We do not have to stop monthly 

benefit payments to the beneficiary 

before we can pay the EN (or State VR 

agency acting as an EN) for milestones 

achieved by the beneficiary. 

(b) Outcome payments. (1) We will 

pay an EN (or State VR agency acting as 

an EN) an outcome payment for a month 

if—

* * * * * 

(ii) We have not already paid for 36 

outcome payment months (or a period 

of 60 outcome payment months for a 

title XVI disability beneficiary who is 

not concurrently a title II disability 

beneficiary) on the same ticket; and 

* * * * * 

(2) The EN (or State VR agency acting 

as an EN) must request payment for 

outcome payment months. Along with 

the request, the EN (or State VR agency 

acting as an EN) must submit evidence 

of the beneficiary’s work or earnings 

(e.g., a statement of monthly earnings 

from the employer or the employer’s 

designated payroll preparer, or an 

unaltered copy of the beneficiary’s pay 

stub). After we have started paying 

outcome payments to an EN (or State VR 

agency acting as an EN) based on 

evidence of the beneficiary’s earnings, 

the EN (or State VR agency) must 

provide documentation of the 

beneficiary’s continued work or 

earnings in such a manner or form and 

at such time or times as we may require, 

when requesting payment for additional 

outcome payments months with respect 

to that beneficiary. Exception: If the EN 

(or State VR agency) does not currently 

hold the ticket because it is unassigned 

or reassigned to another EN (or State VR 

agency), the EN (or State VR agency) 

must request payment, but is not 

required to submit evidence of the 

beneficiary’s work or earnings. 

44. Revise § 411.580 to read as 

follows: 

§ 411.580 Can an EN receive payments for 

milestones or outcome payment months 

that occur before the beneficiary assigns a 

ticket to the EN? 

No. An EN (or State VR agency acting 

as an EN) may be paid only for 

milestones or outcome payment months 

that are achieved after the first day on 

which the ticket is assigned to the EN 

(or State VR agency acting as an EN). 

45. Add a new § 411.581 to read as 

follows: 

§ 411.581 Can an EN receive milestone 

and outcome payments for months after a 

beneficiary takes his or her ticket out of 

assignment? 

Yes. If a beneficiary whose ticket is 

assigned to an EN (or State VR agency 

acting as an EN) takes his or her ticket 

out of assignment (see § 411.145), the 

EN (or State VR agency) can receive 

payments under its elected payment 

system for milestones or outcome 

payment months that occur after the 

ticket is taken out of assignment, as long 

as the ticket has not terminated for any 

of the reasons listed in § 411.155. See 

§ 411.560 for situations in which 

payment may be made to more than one 

EN or State VR agency based on the 

same milestone or outcome. 

46. Add a new § 411.582 to read as 

follows: 

§ 411.582 Can a State VR agency receive 

payment under the cost reimbursement 

system if a continuous 9-month period of 

substantial gainful activity is completed 

after the ticket is assigned to an EN? 

Yes. If a State VR agency provides 

services to a beneficiary under 34 CFR 

361.12, and elects payment under the 

cost reimbursement system, under 

subpart V of part 404 (or subpart V of 

part 416) of this chapter, the State VR 

can receive payment under the cost 

reimbursement system for services 

provided to the beneficiary if all the 

requirements under subpart V of part 

404 (or subpart V of part 416) of this 

chapter are met. 

47. Revise § 411.585 to read as 

follows: 

§ 411.585 Can a State VR agency and an 

EN both receive payment for serving the 

same beneficiary? 

Yes. A State VR agency and an EN can 

both receive payment for serving the 

same beneficiary. 

(a) A State VR agency may act as an 

EN and serve a beneficiary. In this case, 

both the State VR agency acting as an 

EN and another EN may be eligible for 

payment based on the same ticket (see 

§ 411.560). 

(b) If the beneficiary had a ticket in 

use when receiving services from a State 

VR agency (see §§ 411.166–411.171) and 

the State VR agency received payment 

under the cost reimbursement system 

under subpart V of part 404 (or subpart 

V of part 416) of this chapter, the 

beneficiary may assign his or her ticket 

to an EN after completing services with 

the State VR agency, other than a State 

VR acting as an EN. The EN can then be 

paid for milestone payments and 

outcome payments under the outcomemilestone payment system or for 

outcome payments under the outcome 

payment system. See § 411.535. 

(c) If the beneficiary first assigns a 

ticket to an EN, but not a State VR 

agency acting as an EN, the EN can be 

paid pursuant to the elected EN 

payment system. If the ticket becomes 

unassigned, and a beneficiary chooses to 

receive services from a State VR agency, 

the State VR agency may choose to be 

paid under the EN payment or the cost 

reimbursement system. 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Proposed Rules 57237 

§ 411.587 [Removed] 

59. Remove § 411.587. 

60. In § 411.590, revise paragraph (d) 

to read as follows: 

§ 411.590 What can an EN do if the EN 

disagrees with our decision on a payment 

request? 

* * * * * 

(d) Determinations or decisions we 

make about a beneficiary’s right to 

benefits may cause payments we have 

already made to an EN (or denial of 

payment to an EN) to be incorrect, 

resulting in an underpayment or 

overpayment to the EN. If this happens, 

we will make any necessary adjustments 

to the payments (see § 411.555). (See 

§ 411.555(c) for when we will not make 

an adjustment in a case in which an 

overpayment results from a 

determination or decision we make 

about a beneficiary’s right to benefits.) 

While an EN cannot appeal our 

determination about an individual’s 

right to benefits, the EN may furnish any 

evidence the EN has which relates to the 

issue(s) to be decided on appeal if the 

individual appeals our determination. 

[FR Doc. 05–19530 Filed 9–29–05; 8:45 am] 

BILLING CODE 4191–02–P 

POSTAL SERVICE 

39 CFR Part 111 

New Preparation Requirements for 

Bundles of Mail on Pallets 

AGENCY: Postal Service. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service TM is 

seeking comments on a proposal that 

would affect mailers who prepare 

bundles of Periodicals, Standard Mail, 

and Package Services flat-size mail or 

irregular parcels on pallets. The 

proposal would not affect mailers who 

prepare sacks, unbundled parcels, or 

trays on pallets. 

Currently, mailers who prepare 

bundles of flat-size mail or bundles of 

irregular parcels on pallets must prepare 

a pallet if the mailing contains 500 or 

more pounds of bundles for a required 

sortation level. (‘‘Sortation level’’ refers 

to the distribution or separation of mail 

by ZIP Codes, range of ZIP Codes, or 

carrier route.) After all required pallets 

are prepared, mailers must place any 

remaining bundles in sacks. 

Under this proposal, before placing 

any bundles in sacks, if there are 250 or 

more pounds of bundles addressed 

within the ZIP Code range for an area 

distribution center (ADC) or a bulk mail 

center/auxiliary service facility (BMC/ 

ASF), mailers must prepare the ADC 

pallet (for Periodicals) or the BMC/ASF 

pallet (for Standard Mail and Package 

Services). If a mailing does not contain 

any ADC or BMC/ASF pallets—for 

example, the mailer has set the presort 

software to stop at the sectional center 

facility (SCF) level—but there are 250 or 

more pounds for an SCF, the mailer 

must prepare the SCF pallet. 

DATES: We must receive comments on or 

before October 31, 2005. 

ADDRESSES: Mail or deliver comments to 

the Manager, Mailing Standards, U.S. 

Postal Service, 475 L’Enfant Plaza, SW., 

Rm. 3436, Washington, DC 20260–3436. 

You may inspect and photocopy all 

written comments between 9 a.m. and 4 

p.m., Monday through Friday, at USPS 

Headquarters Library, 11th Floor North, 

475 L’Enfant Plaza, SW., Washington, 

DC 20260. 

FOR FURTHER INFORMATION CONTACT: Julia 

Carroll at 202–268–2108 or 

Julia.Carroll@usps.gov. 

SUPPLEMENTARY INFORMATION: The Postal 

Service TM is finding ways to process 

mail more efficiently, thereby improving 

service to our customers and reducing 

costs. 

Bundles of flat-size mailpieces or 

bundles of irregular parcels prepared on 

pallets are easier and generally less 

costly for us to handle than bundles in 

sacks. When customers present mail in 

sacks, the sacks must be opened and the 

contents unloaded before processing on 

our automated sorting equipment. In 

addition, we have found that bundles on 

pallets maintain their integrity to a 

greater degree than bundles in sacks. 

This proposal would help increase the 

volume of mail on pallets by revising 

the standards for required pallet 

preparation. 

Mailing Standards of the United 

States Postal Service, Domestic Mail 

Manual (DMM) 705.8.5.2 provides 

required pallet preparation for 

Periodicals, Standard Mail, and Package 

Services mail (except specified discount 

rate Parcel Post). DMM 705.8.5.2a 

requires mailers who prepare bundles of 

flat-size mail or bundles of irregular 

parcels on pallets to prepare a pallet to 

a required sortation level if a mailing 

contains 500 or more pounds of 

bundles. Additional standards in DMM 

705.8.9.1 require these mailers to place 

in sacks any bundles that cannot go on 

one of the required pallets. 

Under this proposal, after preparing 

all other required pallets at the 500- 

pound required minimum, mailers who 

prepare bundles of flat-size mailpieces 

or bundles of irregular parcels on pallets 

must prepare additional pallets, under 

the following conditions: 

• If 250 or more pounds of bundles 

remain for an ADC (for Periodicals) or 

for a BMC/ASF (for Standard Mail and 

Package Services), mailers must prepare 

the ADC or BMC/ASF pallet(s), as 

applicable for the class of mail. 

• If there are no ADC or BMC/ASF 

pallets in a mailing—for example, if a 

mailer’s presort software is set to stop at 

the SCF level—and 250 or more pounds 

remain for an SCF, mailers must prepare 

the SCF pallet. 

We are proposing an effective date of 

March 1, 2006, for mailers to begin 

mailing under the revised standards. 

In addition to the above changes, we 

also are removing text in 705.8.5.2 about 

labeling pallets and optional bundle 

reallocation, because we cover these 

topics in detail elsewhere in the DMM. 

Although we are exempt from the 

notice and comment requirements of the 

Administrative Procedure Act [5 U.S. C. 

553 (b),(c)] regarding proposed 

rulemaking by 39 U.S.C. 410(a), we 

invite public comments on the 

following proposed revisions to Mailing 

Standards of the United States Postal 

Service, Domestic Mail Manual (DMM), 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR 111.1. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

PART 111—[AMENDED] 

1. The authority citation for 39 CFR 

part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 

401, 403, 404, 3001–3011, 3201–3219, 3403–

3406, 3621, 3626, 5001. 

2. Revise Mailing Standards of the 

United States Postal Service, Domestic 

Mail Manual (DMM), as follows: 

700 Special Standards 

* * * * * 

705 Advanced Preparation and 

Special Postage Payment Systems 

* * * * * 

8.0 PREPARATION FOR PALLETS 

* * * * * 

8.5 General Preparation 

* * * * * 

8.5.2 Required Preparation 

[Revise 8.5.2 to require ADC, BMC/ 

ASF, or SCF pallets at 250 pounds of 

bundles, as follows:] 

The following standards apply to 

Periodicals, Standard Mail, and Package 

Services mail, except Parcel Post mailed 

at BMC Presort (8.17), OBMC Presort 

(8.18), DSCF (8.19, 8.20), and DDU rates 

(8.21).