[Federal Register: July 11, 2005 (Volume 70, Number 131)]
[Proposed Rules]               
[Page 39689-39692]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11jy05-15]                         

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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No.16]
RIN-0960-AG00

 
Rules for Helping Blind and Disabled Individuals Achieve Self-
Support

AGENCY: Social Security Administration.

ACTION: Notice of proposed rulemaking.

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SUMMARY: We are proposing to amend our regulations to implement section 
203 of the Social Security Independence and Program Improvements Act of 
1994. Section 203 of this law amended section 1633 of the Social 
Security Act to require us to establish by regulations criteria for 
time limits and other criteria related to plans to achieve self-support 
(PASS). The law requires that the time limits take into account the 
length of time that a person needs to achieve his or her employment 
goal, within a reasonable period, and other factors as determined by 
the Commissioner to be appropriate.
    A PASS allows some people who receive or are eligible for 
Supplemental Security Income (SSI) disability benefits to set aside 
part of their income and/or resources to meet an employment goal. The 
income and/or resources set aside under a PASS will not be counted in 
determining the amount of the person's SSI payment or his or her 
eligibility.

DATES: To be sure that your comments are considered, we must receive 
them by September 9, 2005.

ADDRESSES: You may give us your comments by using: Our Internet site 
facility (i.e., Social Security Online) at http://policy.ssa.gov/
pnpublic.nsf/LawsRegs or the Federal eRulemaking Portal: http://
www.regulations.gov; e-mail to regulations@ssa.gov; 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, 100 Altmeyer 
Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, 
between 8 a.m. and 4:30 p.m. on regular business days. Comments are 
posted on our Internet site, or you may inspect them on regular 
business days by making arrangements with the contact person shown in 
this 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. It is also available on the Internet 
site for SSA (i.e., Social Security Online): http://policy.ssa.gov/
pnpublic.nsf/LawsRegs.

FOR FURTHER INFORMATION CONTACT: Mary Hoover, Policy Analyst, Office of 
Program Development and Research, Social Security Administration, 6401 
Security Boulevard, Baltimore, MD 21235-6401. Call (410) 965-5651 or 
TTY 1-800-325-0778 for information about these proposed 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. You may also 
contact Social Security Online at http://www.socialsecurity.gov/.

SUPPLEMENTARY INFORMATION:

What Is the Purpose of This Notice of Proposed Rulemaking (NPRM)?

    In this NPRM, we propose to amend our regulations to implement 
section 203 of the Social Security Independence and Program 
Improvements Act of 1994 (Pub. L. 103-296). This law amended section 
1633 of the Social Security Act to provide that, as of January 1, 1995, 
in establishing time limits and other criteria related to a PASS, we 
take into account the length of time that you will need to achieve your 
employment goal, within a reasonable period, and other factors as 
determined by the Commissioner to be appropriate. This requirement for 
a more individualized time limit voided the time limit requirements for 
PASS in our existing regulations, which provided for an initial period 
of not more than 18 months, an extension of up to an additional 18 
months, and a maximum of 48 months. We propose to revise the current 
rules to take into account your individual needs and your employment 
goal in determining what a reasonable length of time is to achieve your 
employment goal. These proposed revisions will add language to some of 
our rules describing the information that must be contained in a PASS. 
They will clarify requirements currently in our PASS rules and 
operating procedures.

[[Page 39690]]

These revisions do not reflect a change in policy because after the 
enactment of Pub. L. 103-296, we updated our operating manual to 
reflect the need for a more individualized assessment of a PASS time 
limit.

What Is a Plan to Achieve Self-Support (PASS)?

    A PASS allows people who are blind or disabled and who receive, are 
eligible for, or are applying for SSI, to set aside income and/or 
resources for expenses needed in meeting an employment goal. We will 
not count the income and/or resources set aside under a PASS in 
determining your eligibility for and receipt of SSI. If you receive 
title II disability benefits, you may also use a PASS to meet an 
employment goal if you:
     Would meet all other income and resource eligibility 
requirements for SSI if some or all of your title II benefit was 
excluded;
     Apply for SSI; and
     Develop an approved PASS that sets aside some or all of 
your title II benefit towards meeting an employment goal.
    The purpose of a PASS is to help people who are blind or disabled 
become self-supporting. A PASS must meet specific requirements that are 
set out in our regulations at 20 CFR 416.1180 through 416.1182 and in 
chapter SI 00870 of our Program Operations Manual at: http://
policy.ssa.gov/ poms.nsf/ partlist?OpenView. It must be individualized 
with an employment goal that is feasible and with a plan to reach that 
employment goal that is viable for you. It must be in writing, contain 
reasonable start and ending dates for meeting your employment goal, and 
establish target dates for milestones, i.e. intermediate steps, towards 
attainment of your goal. It must be approved by us, and we will review 
your progress under the plan at least annually.

What Revisions Are We Proposing To Make and Why?

    As of January 1, 1995, section 1633(d) of the Act requires that, in 
establishing time limits and other criteria for a PASS, we consider the 
reasonable amount of time that a person needs to meet his or her 
employment goal and other factors that we determine are appropriate.
    We propose to revise our rules to eliminate the current monthly 
time limits and to add rules that will take into account your 
individual needs and your employment goal in determining what a 
reasonable length of time is for you to achieve that goal. These 
proposed revisions will describe the requirements for and contents of a 
PASS to clarify requirements currently in our PASS rules and operating 
procedures. These revisions will clarify that a PASS must have a 
feasible employment goal and a viable plan to reach that goal, have 
reasonable beginning and ending dates, include target dates for 
milestones toward completion of the goal, and that we will review 
progress under a plan at least annually. We will help you establish a 
reasonable ending date. We may adjust or extend the ending date of your 
PASS based on progress towards your goal and earnings level reached. We 
will review your PASS progress at least annually to determine if you 
continue to follow the provisions of your PASS.
    The following is an explanation of the specific changes we are 
proposing and our reasons for making these proposals:
    We propose to revise Sec.  416.1180 by adding that we will exclude 
income used to meet expenses that are reasonable and necessary to 
fulfill an approved PASS. In addition, we propose to revise Sec.  
416.1225 to clarify that we will not count resources that are used for 
expenses that are reasonable and necessary to fulfill a PASS. Requiring 
that the expenses be reasonable and necessary to fulfill a PASS is not 
a change in policy. It is contained in our operating procedures.
    We propose to revise Sec.  416.1181 to list the requirements of a 
PASS that sets aside income to meet an employment goal and Sec.  
416.1226 to list the requirements of a PASS that sets aside resources 
to meet an employment goal. A PASS must be individualized, be in 
writing, specify an employment goal that is feasible, include a plan to 
reach the goal that is viable for you, and contain a reasonable start 
and ending date for meeting your employment goal. You must propose a 
reasonable ending date to your PASS. If necessary, we will help you 
establish an ending date, which may be different than the ending date 
that you propose. Once the ending date is set and you begin following a 
PASS, we may adjust or extend the PASS ending date based on progress 
towards your goal and earnings level reached. We will review your PASS 
progress at least annually to determine if you continue to follow the 
provisions of your PASS.
    A PASS must include target dates for milestones and must be 
approved by us. We will review your progress at least annually. A PASS 
that sets aside income or resources must show anticipated expenses and 
explain how they are necessary for the employment goal. It must show 
anticipated income (or resources you have and will receive) and explain 
how the income or resources will be used to meet expenses towards the 
employment goal. It must show how the money or resources set aside 
under a PASS will be kept separate from other funds or resources. It 
must show how living expenses will be met while the PASS is in effect. 
If the employment goal is self-employment, it must include a plan that 
defines the business, provides a marketing strategy, details financial 
data, outlines the operational procedures, and describes the management 
plan.

Clarity of These Proposed Rules

    Executive Order (E.O.) 12866, as amended by E.O. 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 them 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 
isn't 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?

Regulatory Procedures

Executive Order (E.O.) 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules meet the criteria for a 
significant regulatory action under E.O. 12866, as amended by E.O. 
13256. Thus, they were subject to OMB review.

Regulatory Flexibility Act

    We certify that these regulations would not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Thus, a regulatory flexibility analysis as 
provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    These proposed rules contain reporting requirements in Sec. Sec.  
416.1181 and 416.1226. The public reporting burden is accounted for in 
the

[[Page 39691]]

Information Collection Request for the form that the public uses to 
submit the information to SSA. Therefore, a one hour placeholder burden 
is being assigned to the specific reporting requirement(s) contained in 
these rules; we are seeking clearance of this burden because it was not 
considered during the clearance of the form.
    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 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. Comments should be submitted and/or faxed to OMB and SSA 
at the following address/numbers:
    Office of Management and Budget, Attn: Desk Officer for SSA, Fax 
Number: 202-395-6974.
    Social Security Administration, Attn: SSA Reports Clearance 
Officer, Room 1338 Annex Building, 6401 Security Blvd., Baltimore, MD 
21235-6401, Fax Number: 410-965-6400.

(Catalog of Federal Domestic Assistance Programs Nos. 96.001, Social 
Security--Disability Insurance; 96.002, Social Security--Retirement 
Insurance; 96.004, Social Security--Survivors Insurance; 96.006, 
Supplemental Security Income)

List of Subjects in 20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Supplemental Security Income, 
Reporting and recordkeeping requirements.

    Dated: April 4, 2005.
Jo Anne B. Barnhart,
Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend 
subpart K and L of part 416 of chapter III of title 20 of the Code of 
Federal Regulations as set forth below:

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart K--Income [Amended]

    1. The authority citation for subpart K is revised to read as 
follows:

    Authority: Secs. 702(1)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, 1631, and 1633 of the Social Security Act (42 U.S.C. 
902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and 
1383b); sec. 211, Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

    2. The second sentence of Sec.  416.1180 is revised to read as 
follows:


Sec.  416.1180  General.

    * * * If you are blind or disabled, we will pay you SSI benefits 
and will not count the part of your income (for example, your or a 
family member's wages, title II benefits, or pensions) that you use or 
set aside to use for expenses that we determine to be reasonable and 
necessary to fulfill an approved plan to become self-supporting. * * *
    3. Section 416.1181 is revised to read as follows:


Sec.  416.1181  What is a plan to achieve self-support (PASS)?

    (a) A PASS must--
    (1) Be designed especially for you;
    (2) Be in writing;
    (3) Be approved by us (a change of plan must also be approved by 
us);
    (4) Have a specific employment goal that is feasible and a plan to 
reach it that is viable for you;
    (5) Be limited to one employment goal; however, the employment goal 
may be modified and any changes related to the modification must be 
made to the plan;
    (6) Show how the employment goal will generate sufficient earnings 
to substantially reduce or eliminate your dependence on SSI or 
eliminate your need for title II disability benefits;
    (7) Contain a beginning date and a reasonable ending date to meet 
your employment goal;
    (8) Give target dates for meeting milestones towards your 
employment goal;
    (9) Show what expenses you will have and how they are reasonable 
and necessary to meet your employment goal;
    (10) Show what money you have and will receive, how you will use or 
spend it to attain your employment goal, and how you will meet your 
living expenses; and
    (11) Show how the money you set aside under the plan will be kept 
separate from your other funds.
    (b) You must propose a reasonable ending date for your PASS. If 
necessary, we can help you establish an ending date, which may be 
different than the ending date you propose. Once the ending date is set 
and you begin your PASS, we may adjust or extend the ending date of 
your PASS based on progress towards your goal and earnings level 
reached.
    (c) If your employment goal is self-employment, you must include a 
business plan that defines the business, provides a marketing strategy, 
details financial data, outlines the operational procedures, and 
describes the management plan.
    (d) Your progress will be reviewed at least annually to determine 
if you are following the provisions of your plan.

Subpart L--[Amended]

    4. The authority citation for subpart L is revised to read as 
follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, 1631, and 1633 of the Social Security Act (42 U.S.C. 
902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and 
1383b); sec. 211, Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

    5. Section 416.1225 is revised to read as follows:


Sec.  416.1225  An approved plan to achieve self-support; general.

    If you are blind or disabled, we will pay you SSI benefits and will 
not count resources that you use or set aside for expenses that we 
determine to be reasonable and necessary to fulfill an approved plan to 
achieve self-support.
    6. Section 416.1226 is revised to read as follows:


Sec.  416.1226  What is a plan to achieve self-support (PASS)?

    (a) A PASS must--
    (1) Be designed especially for you;
    (2) Be in writing;
    (3) Be approved by us (a change of plan must also be approved by 
us);
    (4) Have a specific employment goal that is feasible and a plan to 
reach it that is viable for you;
    (5) Be limited to one employment goal; however, the employment goal 
may be modified and any changes related to the modification must be 
made to the plan;
    (6) Show how the employment goal will generate sufficient earnings 
to substantially reduce your dependence on SSI or eliminate your need 
for title II disability benefits;
    (7) Contain a beginning date and a reasonable ending date to meet 
your employment goal;
    (8) Give target dates for meeting milestones towards your 
employment goal;
    (9) Show what expenses you will have and how they are reasonable 
and necessary to meet your employment goal;
    (10) Show what resources you have and will receive, how you will 
use them to attain your employment goal, and how you will meet your 
living expenses; and
    (11) Show how the resources you set aside under the plan will be 
kept separate from your other resources.

[[Page 39692]]

    (b) You must propose a reasonable ending date for your PASS. If 
necessary, we can help you establish an ending date, which may be 
different than the ending date you propose. Once the ending date is set 
and you begin your PASS, we may adjust or extend the ending date of 
your PASS based on your progress towards your goal and earnings level 
reached.
    (c) If your employment goal is self-employment, you must include a 
business plan that defines the business, provides a marketing strategy, 
details financial data, outlines the operational procedures, and 
describes the management plan.
    (d) Your progress will be reviewed at least annually to determine 
if you are following the provisions of your plan.

[FR Doc. 05-13584 Filed 7-8-05; 8:45 am]
BILLING CODE 4191-02-P