Source: https://www.federalregister.gov/documents/2003/11/05/03-27434/special-benefits-for-certain-world-war-ii-veterans-reporting-requirements-suspension-and-termination
Timestamp: 2018-04-23 18:19:57
Document Index: 194860420

Matched Legal Cases: ['art 408', 'art 408', 'art 408', 'art 408', 'art 408', '§\u2009408', 'art 408', 'art 408', '§\u2009404', 'arts 902', '§\u2009416', '§\u2009408', '§\u2009404', '§\u2009416', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009408', '§\u2009404', '§\u2009408', '§\u2009404', 'arts 902', '§\u2009416', '§\u2009416', '§\u2009408', '§\u2009408', 'art 416']

A Proposed Rule by the Social Security Administration on 11/05/2003
To be sure your comments are considered, we must receive them by January 5, 2004.
62669-62688 (20 pages)
Subpart F—Reserved for Future Use
Subpart H—Suspension and Termination of SVB
Subpart I—Overpayments and Underpayments
https://www.federalregister.gov/d/03-27434 https://www.federalregister.gov/d/03-27434
Start Preamble Start Printed Page 62670
We propose to add six new subparts to part 408 of our regulations and reserve an additional subpart for future use. Part 408 sets forth our rules applicable to claims for special veterans benefits (SVB) under title VIII of the Social Security Act (the Act). The title VIII program was effective in May 2000 and provides monthly benefits to certain World War II (WWII) veterans who previously were eligible for supplemental security income (SSI) payments under title XVI of the Act and reside outside the United States. In these proposed rules, we are setting forth six new subparts that would deal with the following topics: the events you must report to us after you apply for SVB, the circumstances that will affect your SVB entitlement, how we handle overpayments and underpayments under the SVB program, how the administrative review process works, your right to appoint someone to represent you in your dealings with us, and administration agreements we may enter into with a State under which we will pay supplemental recognition payments to you on the State's behalf.
In addition, we propose to reserve for future use a subpart in part 408 that would explain when we will pay your SVB to someone else on your behalf. We plan to issue those proposed rules at a later date.
You may give us your comments by: using our Internet site facility (i.e., Social Security Online) at http://policy.ssa.gov/​pnpublic.nsf/​LawRegs;​ e-mail to regulations@ssa.gov; telefax to (410) 965-2830; or letter to the Commissioner of Social Security, PO Box 17703, Baltimore, MD 21235-7703. You may also deliver them to the Office of Regulations, Social Security Administration, 100 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, between 8 a.m. and 4:30 p.m. on regular business days. Comments are posted on our Internet site for your review, or you may inspect them physically on regular business days by making arrangements with the contact person shown in this preamble.
The electronic file of this document is available on the date of publication in the Federal Register on the Internet site for the Government Printing Office: http://www.gpoaccess.gov/​fr/​index.html. It is also available on the Internet site for SSA (i.e., Social Security Online): http://policy.ssa.gov/​pnpublic.nsf/​LawRegs.
Robert J. Augustine, Social Insurance Specialist, Office of Regulations, Social Security Administration, 100 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, (410) 965-0020 or TTY (410) 966-5609 for information about these proposed rules. For information on eligibility or claiming benefits, call our national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778 or visit our Internet site, Social Security Online, at http://www.socialsecurity.gov/​.
Section 251 of the Foster Care Independence Act of 1999 (Pub. L. No. 106-169), enacted on December 14, 1999, added a new title VIII to the Act (Special Benefits for Certain World War II Veterans). Title VIII requires SSA to pay special veteran's benefits (SVB) to certain WWII veterans who reside outside the United States. Establishing SVB entitlement is a two-step process: first, you need to show that you meet certain qualifying requirements; once we determine that you qualify for SVB, you will be entitled to SVB payments after you begin residing outside the U.S.
On April 4, 2003, we published final rules that set forth the rules we follow in determining whether you qualify for SVB, how you file for benefits, what evidence you must give us in connection with your claim and how we evaluate that evidence, and how we compute and pay SVB (67 FR 55774). We now propose to add six subparts in part 408 that would provide additional guidelines for the title VIII program with respect to the topics discussed below, and reserve for future use a subpart on representative payment in the title VIII program.
Any of the SVB disqualifying events listed in section 804 of the Act occurs. This includes removal or deportation from the United States; fleeing from the United States to avoid prosecution, or custody or confinement after conviction, under the laws of the United States or the jurisdiction in the United States from which you flee, for a crime or an attempt to commit a crime that is a felony or, in the State of New Jersey, is a high misdemeanor; violating a condition of probation or parole imposed under Federal or State law; or, in the case of an individual who is not Start Printed Page 62671a citizen or national of the United States, taking up residence in a country to which payments are withheld by the Treasury Department (Treasury) under 31 U.S.C. 3329. If a disqualifying event occurs and we have not yet found you qualified for SVB, we will deny your SVB claim. If we found you met all the requirements for SVB when the disqualifying event occurs, we will suspend your SVB payments.
You fail to give us information we need in connection with your claim;
We are adding six new subparts to part 408 of our regulations and reserving an additional subpart for future use. Following is a list of the proposed subparts that includes a brief description of each proposed section in the subpart. We are also revising § 408.101 to add these new subparts to the overview of part 408.
We propose to reserve for future use subpart F in part 408 for our rules on representative payment of SVB. We plan to issue those proposed rules at a later date.
This subpart would explain which events you must report to us after you file for SVB, what information your reports must include, and when your reports are due. Specifically:
Section 408.704 explains that you are responsible for making your own reports if you receive your own benefits. Start Printed Page 62672If you have a representative payee, you or your representative must make the required reports, unless you have been legally adjudged incompetent. In that case, your representative payee is responsible for making required reports to us.
Section 408.712 explains that you can make your report in writing, orally, or using other means of reporting (e.g., fax or e-mail).
This subpart would explain the events that would cause us to suspend your SVB payments or terminate your SVB entitlement. Specifically:
This subpart would set forth the rules we would follow when you receive more or less than you should have in SVB payments. These proposed rules are similar in many respects to the rules we currently follow in dealing with overpayments and underpayments under the titles II and XVI programs. Specifically:
Section 408.923 explains that, in adjusting your SVB payments to recover an overpayment, the amount that we Start Printed Page 62673will withhold is limited to 10 percent of the maximum SVB monthly payment amount. This section also explains that you have the right to request a higher or lower rate of withholding and explains how we determine an appropriate lower rate of withholding when you request a lower rate. If we find that you engaged in fraud, misrepresentation or concealment of material information in connection with the overpayment, we will not limit the amount we will withhold from SVB each month.
Section 408.930 explains that, if you received an SVB overpayment that you have not refunded to us and you are not currently receiving SVB payments, but are receiving title II benefits, we will adjust your title II benefits to recover the SVB overpayment. This section also explains the circumstances when we will not adjust your title II benefits.
Section 408.940 explains that, where an overpaid person does not refund an overpayment to us and is not currently receiving title II or SVB payments from which we can withhold the overpayment, we will refer the overpayment to the Department of the Treasury for withholding from any Federal income tax refund you may be due.
Section 408.942 explains that, before we refer an overpayment to Treasury for tax refund offset, you will have the chance to submit evidence that the debt is not past due or legally enforceable. After reviewing the evidence submitted, we will make findings.
Section 408.950 explains that, when appropriate, we may accept a compromise settlement (payment of less than the full amount of the overpayment) to discharge the entire overpayment debt or we may suspend or terminate our efforts to collect the overpayment. We would consider taking one of these actions if we find that you or your estate do not have the ability to pay the full amount of the overpayment presently or in the future within a reasonable period of time or that the cost of collection is likely to exceed the amount of recovery. In deciding whether to take any of these actions, we would apply the rules that we apply concerning such actions for title II overpayments at § 404.515(b)-(f) and other applicable rules, including the Federal Claims Collection Standards (FCCS) at 31 CFR parts 902 and 903, established under the authority of 31 U.S.C. 3711(a)(d). If we suspend or terminate collection, we may take collection action in the future in accordance with Federal law and the FCCS. Failure to make payment in the manner and within the time that we require in a compromise settlement will result in reinstatement of our claim for the full amount of the overpayment less any amounts paid.
This subpart would set forth our rules on administrative review of SVB initial determinations. Again, as with our rules in subpart I on overpayments, these rules follow closely our rules on administrative review of titles II and XVI initial determinations. Regarding the expedited appeals process, administrative law judge hearings, Appeals Council review of ALJ hearings or dismissals, Court remand cases, and time limits for reopening a final determination we previously made, the proposed rules provide cross-references to the appropriate SSI rules while noting any exceptions in those rules that are applicable to the title VIII program. Specifically:
Section 408.1007 explains that reconsideration is the first step in the administrative review process if you are dissatisfied with the initial determination. Start Printed Page 62674
Section 408.1009 explains that you must file a request for reconsideration within 60 days after you receive our notice of initial determination. This section also explains that you may ask for more time to request a reconsideration if you had good cause for missing the 60-day deadline.
As explained above, we believe that a number of the SSI provisions on representation of parties should also apply under the SVB program. Section 408.1101, therefore, explains that, for purposes of claimant representation under the SVB program, we would follow the rules in §§ 416.1500-416.1505, 416.1507-416.1515 and 416.1540-416.1599 of our SSI rules.
This subpart would set forth our rules on Federal administration of a State's recognition payment program. Specifically:
As indicated above, § 408.930 of these proposed rules would reflect the authority in section 808(a)(1)(B) of the Act to adjust your title II benefits to recover a title VIII overpayment. To conform to this change, we are also revising our title II rules at § 404.401(c) to explain that we may adjust your title II benefits to recover a title VIII overpayment. We are also revising § 416.570 to indicate that we will not adjust your SSI benefits to recover an SVB overpayment unless you specifically request us to do so.
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 Start Printed Page 62675comments on how to make these proposed rules easier to understand.
We certify that these proposed rules will not have a significant impact on a substantial number of small entities since they affect only individuals claiming benefits under title VIII of the Act. Therefore, a regulatory flexibility analysis, as provided for in the Regulatory Flexibility Act, as amended, is not required.
§ 408.704-.714 1 1 1 1
§ 408.802(b) 5 1 .25 1.25
§ 408.814 5 1 .25 1.25
§ 408.820(c) 5 1 .25 1.25
§ 408.923(b) 1 1 1 1
§ 408.931(b) and § 408.932(d) 1 1 1 1
§ 408.932(c) 2 1 .25 .50
§ 408.932(e) 2 1 .25 .50
§ 408.941(b) and § 408.942 2 1 .25 .50
§ 408.944(a) 2 1 .50 1
§ 408.1000(a) 1 1 1 1
§§ 408.1007; 408.1009(a)-(b) 1 1 1 1
§ 408.1009(c) 1 1 1 1
§ 408.1210(c)-(d) 1 1 2 2
§ 408.1215 10 1 .25 2.50
§ 408.1230 20 1 .25 5.00
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 to the Office of Management and Budget at the following fax number and to the Social Security Administration at the following address or fax number: Office of Management and Budget, Attn: Desk Officer for SSA, Fax: 202-395-6974. Social Security Administration, Attn: SSA Reports Clearance Officer, 1338 Annex Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, Fax Number: 410-965-6400.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social Security—Disability Insurance; 96.002 Social Security— Retirement Insurance; 96.004, Social Security—Survivors Insurance; 96.006, Supplemental Security Income; 96.020, Special Benefits for Certain World War II Veterans)
For the reasons set out in the preamble, we propose to amend Chapter III of Title 20 of the Code of Federal Regulations as follows:
Subpart F—[Reserved] Subpart G—Reporting Requirements
What procedures apply if you request a reconsideration of an initial Start Printed Page 62677determination that results in suspension, reduction, or termination of your SVB?
(c) Other methods of reporting. You may use any other suitable method of reporting for example, a telegram or a cable.
(a) Suspension effective date. We will suspend your SVB payments effective with the month after the month in which we receive notice from the Immigration and Naturalization Service that you have been removed (including deported) from the United States under section 237(a) or 212(a)(6)(A) of the Immigration and Nationality Act.
Start Printed Page 62679
You, your legal guardian, or your representative payee may voluntarily terminate your SVB entitlement by filing a written request for termination. If your representative payee requests termination, it must be shown that no hardship would result to you if the request is processed. When a termination request is filed, your SVB entitlement ends effective with the month following the month you file your request with us unless you specify some other month. However, we will not terminate your entitlement for any month for which payment has been or will be made unless you repay (or there is an assurance you will repay) any amounts paid for those months. When we process a voluntary request for termination of your SVB entitlement, we will send you a notice of our determination in accordance with § 408.1005. Once terminated, your entitlement can be reestablished only if you file a new application, except as provided by § 408.1009.
(b) Continuation of payment pending an appeal. The written notice of our intent to suspend, reduce, or terminate payments will give you 60 days after the date you receive the notice to request the appropriate appellate review. If your benefit payments are reduced or suspended and you file an appeal within 10 days after you receive the notice, payments will be continued or reinstated at the previously established payment level (subject to the effects of intervening events on the payment which are not appealed within 10 days of receipt of a required advance notice or which do not require advance notice, e.g., an increase in the benefit amount) until a decision on your initial appeal is issued, unless you specifically waive in writing your right to continuation of payment at the previously established level in accordance with paragraph (c) of this section. Where the request for the appropriate appellate review is filed more than 10 days after the notice is received but within the 60-day period specified in § 408.1009 of this part, you have no right to continuation or reinstatement of payment at the previously established level unless you establish good cause under the criteria specified in § 408.1011 of this part for failure to appeal within 10 days after receipt of the notice. For purposes of this paragraph, we will presume you received our notice of intent to suspend, reduce, or terminate payments 5 days after the date on the face of the notice, unless there is a reasonable showing to the contrary.
Authority: Secs. 702(a)(5) and 808 of the Social Security Act (42 U.S.C. 902(a)(5) and 1008).
(2) Payment of less than the amount due for a period. For purposes of this section, payment has been made when certified by the Social Security Administration to the Department of the Treasury. Payment is not considered to have been made where payment has not been received by the designated payee, or where payment was returned.
As used in this subpart, the term overpayment means payment of more Start Printed Page 62680than the amount due for any period. For purposes of this section, payment has been made when certified by the Social Security Administration to the Department of the Treasury. Payment is not considered to have been made where payment has not been received by the designated payee, or where payment was returned.
(a) General-when fault is relevant. If you request waiver of recovery of an overpayment, we must determine whether you were without fault. You are not relieved of liability and are not without fault solely because we may have been at fault in making the overpayment.
We will waive recovery of an overpayment when you are without fault (as defined in § 408.912) and recovery would be against equity and good conscience. Recovery would be against equity and good conscience if you changed your position for the worse or gave up a valuable right in reliance on our notice that payment would be made or because of the incorrect payment itself.
Example: Upon our notice that you are eligible for SVB payments, you signed a lease on an apartment renting for $15 a month more than the one you previously occupied. You were subsequently found ineligible for SVB and no benefits are payable. In this case, recovery of the overpayment would be considered “against equity and good conscience.”Start Printed Page 62681
(a) Amount of the withholding limit. Except as provided in paragraphs (b) and (c) of this section, the amount we will withhold from your monthly SVB payment to recover an overpayment is limited to the lesser of (1) the amount of your Federal SVB payment or
(2) an amount equal to 10 percent of the maximum SVB monthly payment amount as defined in § 408.505(a).
(b) Benefits payable in a month. For purposes of this section, benefits payable in a month means the actual amount of title II benefits you receive in that month. It includes your monthly benefit and any past due benefits after any reductions or deductions listed in § 404.401(a) and (b) of this chapter.
(2) We are recovering a title II overpayment by adjusting your title II benefits.
(b) If within that 30-day period you ask us to review our determination that you still owe us this overpayment Start Printed Page 62682balance, we will not begin adjusting your title II benefits before we review the matter and notify you of our decision in writing.
(a) General. The standards we will apply and the procedures we will follow before requesting the Department of the Treasury to offset income tax refunds due taxpayers who have an outstanding overpayment are set forth in §§ 408.940 through 408.946 of this subpart. These standards and procedures are authorized by 31 U.S.C. 3720A, as implemented through Department of the Treasury regulations at 31 CFR 285.2.
(b) We will use the Department of the Treasury tax refund offset procedure to collect overpayments that are certain in amount, past due and legally enforceable and eligible for tax refund offset under regulations issued by the Secretary of the Treasury. We will use these procedures to collect overpayments from you only when you are not currently entitled to monthly SVB under title VIII of the Act. We will refer an overpayment to the Secretary of the Treasury for offset against tax refunds no later than 10 years after our right to collect the overpayment first accrued.
(d) Written findings. We will issue our written findings including supporting rationale to you, your attorney or other representative. The findings will be the final Agency action with respect to the past-due status and enforceability of the overpayment.
If your tax refund is insufficient to recover an overpayment in a given year, the case will remain with the Department of the Treasury for succeeding years, assuming that all criteria for certification are met at that time. Start Printed Page 62683
(b) Rules we apply. In deciding whether to take any of the actions described in paragraph (a) of this section, we will apply the rules in § 404.515(b), (c), (d), (e), and (f) of this chapter and other applicable rules, including the Federal Claims Collection Standards (31 CFR parts 902 and 903).
(f) Who will act as your payee if we determine that representative payment will be made; Start Printed Page 62684
If you request reconsideration, we will give you a chance to present your Start Printed Page 62685case. How you can present your case depends upon the issue involved and whether you are asking us to reconsider an initial determination on an application or an initial determination on an SVB suspension, reduction or termination action. The methods of reconsideration include the following:
(a) General rules. For purposes of this part, we use the same rules on Appeals Council review that we use in the title Start Printed Page 62686XVI program (see §§ 416.1467-416.1482 of this chapter), except as noted in paragraph (b) of this section.
(b) Exceptions. (1) In § 416.1488, an additional paragraph (d) is deemed to read as follows:
“(d) At any time if it was wholly or partially unfavorable to you, but only to correct—
(1) a clerical error; or
(2) an error that appears on the face of the evidence that we considered when we made the determination or decision.”
(j) State recognition payments; defined. State recognition payments are any payments made by a State or one of its political subdivisions to an individual who is entitled to SVB, if the payments are made:
(b) Administrative costs.—(1) General rule. SSA will assess each State that elects Federal administration of its recognition payments an administration fee for administering those payments.
(iii) For fiscal year 2003 and each succeeding fiscal year
(c) Agreement period. The agreement period for a State that has elected Federal administration of its recognition payments extends for one year from the date the agreement was signed unless otherwise designated in the agreement. The agreement will be automatically renewed for a period of one year unless either the State or SSA gives written notice not to renew, at least 90 days before the beginning of the new period. For a State to elect Federal administration of its recognition payment program, it must notify SSA of its intent to enter into an agreement, furnishing the necessary payment Start Printed Page 62687specifications, at least 120 days before the first day of the month for which it wishes Federal administration to begin, and have executed such agreement at least 30 days before such day.
(d) Modification or termination. The agreement may be modified at any time by mutual consent. The State or SSA may terminate the agreement upon 90 days written notice to the other party, provided the effective date of the termination is the last day of a quarter. However, the State may terminate the agreement upon 45 days written notice to SSA if: (1) The State does not wish to comply with a regulation promulgated by SSA after the execution of the agreement; and (2) the State provides its written notice within 30 days of the effective date of the regulation. The Commissioner is not precluded from terminating the agreement in less than 90 days if the State has failed to materially comply with the provisions of § 408.1235 on State transfer of funds to SSA.
(c) State audit. Any State entering into an agreement with SSA which provides for Federal administration of the State's recognition payments has the right to an audit (at State expense) of the payments made by SSA on behalf of such State. The Commissioner and the State shall mutually agree upon a satisfactory audit Start Printed Page 62688arrangement to verify that recognition payments paid by SSA on behalf of the State were made in accordance with the terms of the administration agreement under § 408.1205. Audit findings will be resolved in accordance with the provisions of the State's agreement with SSA.
6. The authority citation for subpart E of part 416 continues to read as follows:
7. Section 416.570 is amended by revising the third sentence to read as follows:
* * * Absent a specific request from the person from whom recovery is sought, no overpayment made under title II, title VIII, or title XVIII of the Act will be recovered by adjusting SSI benefits. * * *
[FR Doc. 03-27434 Filed 11-4-03; 8:45 am]