[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Notices]
[Pages 34470-34471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16684]


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SOCIAL SECURITY ADMINISTRATION
[Social Security Ruling (SSR) 96-1p]


Application by the Social Security Administration (SSA) of 
Federal Circuit Court and District Court Decisions

AGENCY: Social Security Administration.

ACTION: Notice of Social Security Ruling.

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SUMMARY: In accordance with 20 CFR 422.406(b)(1), the Commissioner of 
Social Security gives notice of Social Security Ruling 96-1p. This 
Ruling clarifies SSA's longstanding policies that (1) unless and until 
a Social Security Acquiescence Ruling is issued determining that a 
final circuit court holding conflicts with the Agency's interpretation 
of the Social Security Act or regulations and explaining how SSA will 
apply such a holding, SSA decisionmakers will continue to be bound by 
SSA's nationwide policy, rather than the court's holding, in 
adjudicating other claims within that circuit court's jurisdiction, and 
(2) despite a district court decision which may conflict with SSA's 
interpretation of the Social Security Act or regulations, SSA 
adjudicators will continue to apply SSA's nationwide policy when 
adjudicating other claims within that district court's jurisdiction 
unless the court directs otherwise.
    This Ruling does not in any way modify SSA's acquiescence policy to 
which the Agency continues to remain firmly committed, but instead 
serves to emphasize consistent adjudication in the programs SSA 
administers.

EFFECTIVE DATE: July 2, 1996.

FOR FURTHER INFORMATION CONTACT: Joanne K. Castello, Division of 
Regulations and Rulings, Social Security Administration, 6401 Security 
Boulevard, Baltimore, MD 21235, (410) 965-1711.

SUPPLEMENTARY INFORMATION: Although we are not required to do so 
pursuant to 5 U.S.C. 552 (a)(1) and (a)(2), we are publishing this 
Social Security Ruling in accordance with 20 CFR 422.406(b)(1).
    Social Security Rulings make available to the public precedential 
decisions relating to the Federal old-age, survivors, disability, 
supplemental security income, and black lung benefits programs. Social 
Security Rulings may be based on case decisions made at all 
administrative levels of adjudication, Federal court decisions, 
Commissioner's decisions, opinions of the Office of the General 
Counsel, and other policy interpretations of the law and regulations.
    Although Social Security Rulings do not have the force and effect 
of the law or regulations, they are binding on all components of the 
Social Security Administration, in accordance with 20 CFR 
422.406(b)(1), and are to be relied upon as precedents in adjudicating 
cases.
    If this Social Security Ruling is later superseded, modified, or 
rescinded, we will publish a notice in the Federal Register to that 
effect.

(Catalog of Federal Domestic Assistance, Programs 96.001 Social 
Security--Disability Insurance; 96.002 Social Security--Retirement 
Insurance; 96.004 Social Security--Survivors Insurance; 96.005 
Special Benefits for Disabled Coal Miners; 96.006 Supplemental 
Security Income)

    Dated: June 7, 1996.
Shirley S. Chater,
Commissioner of Social Security.

Policy Interpretation Ruling

Application by the Social Security Administration (SSA) of Federal 
Circuit Court and District Court Decisions

    Purpose: To clarify longstanding policy that, unless and until a 
Social Security Acquiescence Ruling (AR) is issued determining that a 
final circuit court holding conflicts with the Agency's interpretation 
of the Social Security Act or regulations and explaining how SSA will 
apply such a holding, SSA decisionmakers continue to be bound by SSA's 
nationwide policy, rather than the court's holding, in adjudicating 
other claims within that circuit court's jurisdiction. This Ruling does 
not in any way modify SSA's acquiescence policy to which the Agency 
continues to remain firmly committed, but instead serves to emphasize 
consistent adjudication in the programs SSA administers. This Ruling is 
also issued to clarify longstanding Agency policy that, despite a 
district court decision which may conflict with SSA's interpretation of 
the Social Security Act or regulations, SSA adjudicators will continue 
to apply SSA's nationwide policy when adjudicating other claims within 
that district court's jurisdiction unless the court directs otherwise.
    Citations (Authority): Sections 205(a), 702(a)(5) and 1631(d) of 
the Social Security Act; Sections 413(b), 426(a) and 508 of the Black 
Lung Benefits Act; Regulations No. 4, section 404.985; Regulations No. 
10, section 410.670c; Regulations No. 16, section 416.1485; Regulations 
No. 22, section 422.406.
    Background:  Final regulations on the application of circuit court 
law in the Social Security, Supplemental Security Income, and Black 
Lung programs were published in the Federal Register on January 11, 
1990 (55 FR 1012). SSA first adopted the acquiescence policy set forth 
in these rules in 1985, with the details evolving over the next 5 
years. These rules explain how SSA acquiesces in circuit court law 
which conflicts with Agency policy; it does so by issuing an AR for a 
final circuit court decision which SSA determines is in conflict with 
the Agency's interpretation of the Social Security Act or regulations. 
20 CFR 404.985(b), 410.670c(b) and 416.1485(b). The AR, which is issued 
through publication in the Federal Register, describes the 
administrative case and the court decision, identifies the issue(s), 
explains how the court decision differs from SSA policy, and

[[Page 34471]]

explains how SSA will apply the court holding, instead of its 
nationwide policy, when deciding claims within the applicable circuit. 
ARs apply at all steps in the administrative process within the 
applicable circuit unless the court decision, by its nature, applies 
only at certain steps in this process. In the latter case, the AR may 
be so limited.
    As of the effective date of this Ruling, SSA had issued a total of 
62 ARs, averaging about 3-4 ARs per year in recent years; 42 of those 
ARs are still in effect. The majority of the ARs issued by SSA to date 
have dealt with nondisability issues, although a significant portion 
have dealt directly with the disability determination process. 
Decisions for which ARs are issued often involve complex and difficult 
issues. The court's holding may be unclear in its scope and susceptible 
to differing interpretations. Despite these difficulties, no AR has 
been found to be inadequate by the circuit court which issued the 
underlying decision.
    Policy Interpretation: Unless and until an AR for a circuit court 
holding has been issued, SSA adjudicates other claims within that 
circuit by applying its nationwide policy. The preamble to the final 
acquiescence regulations published on January 11, 1990, explained the 
basis for this approach in responding to a public comment suggesting 
that administrative law judges (ALJs) and the Appeals Council should be 
allowed to apply circuit court holdings without the benefit of an 
Acquiescence Ruling:

    [W]e have not adopted this comment. First, under this final 
acquiescence policy, Acquiescence Rulings apply to all levels of 
adjudication, not only to the ALJ and Appeals Council levels, unless 
a holding by its nature applies only to certain levels of 
adjudication. Thus, the approach suggested in this comment would 
create different standards of adjudication at the different levels 
of administrative review. Second, interpreting and applying a 
circuit court holding is not always a simple matter, as we noted 
previously. <SUP>1 Finally, by statute, establishing policy is the 
Secretary's <SUP>2 responsibility; adjudicators are responsible for 
applying that policy to the facts in any given case. Therefore, we 
believe that to ensure the uniform and consistent adjudication 
necessary in the administration of a national program, the agency 
must analyze court decisions and provide adjudicators as specific a 
statement as possible explaining the agency's interpretation of a 
court of appeals holding, as well as providing direction on how to 
apply the holding in the course of adjudication.

    \1\ The preamble previously noted that, ``Whether or not the 
holding of a particular circuit court decision `conflicts' with our 
policy is not always clear . . .'' 55 FR 1012 (1990).
    \2\ As a result of Pub. L. 103-296, the Social Security 
Independence and Program Improvements Act of 1994, which made SSA an 
independent agency separate from the Department of Health and Human 
Services effective March 31, 1995, the responsibility for 
establishing policy now resides with the Commissioner of Social 
Security, rather than the Secretary of Health and Human Services.
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55 FR 1013 (1990).
    As explained in SSA's regulations at 20 CFR 404.985(b), 
410.670c(b), and 416.1485(b), if SSA makes an administrative 
determination or decision on a claim between the date of a circuit 
court decision and the date of issuance of an AR for that decision, the 
claimant, upon request, is permitted to have the claim readjudicated by 
demonstrating that application of the AR could change the result. Thus, 
as explained in the preamble to the acquiescence regulations, a 
readjudication procedure is provided which allows a claimant, whose 
application was adjudicated during the interim period between a circuit 
court decision and the issuance of an AR for that decision, to seek 
immediate application of the AR once it is issued, without the 
necessity of appeal. 55 FR 1013 (1990).
    Finally, in accordance with its regulations, SSA acquiesces only in 
decisions of the Federal circuit courts, and not in decisions of 
Federal district courts within a circuit. Thus, despite a district 
court decision which may conflict with SSA's interpretation of the 
Social Security Act or regulations, SSA adjudicators will continue to 
apply SSA's nationwide policy when adjudicating other claims within 
that district court's jurisdiction unless the court directs otherwise 
such as may occur in a class action.
    Effective Date: This Ruling, which reflects longstanding procedures 
which SSA continues to believe represent the most effective and fair 
way to implement its acquiescence policy, is effective on July 2, 1996. 
This Ruling does not apply to the claims of New York disability 
claimants who are covered by the court-approved settlement in 
Stieberger v. Sullivan.

[FR Doc. 96-16684 Filed 7-1-96; 8:45 am]
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