federal register - U.S. Government Printing Office

Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations6117permanent and the person will not beallowed to change back to the 3rd of themonth. We will not allow beneficiariesbeing paid on one of the three new daysto switch to a different payment day.5. We will not include personsreceiving SSI payments, and personsconcurrently entitled to both OASDIand SSI benefits, in payment cycling.Since SSI is a needs-based program, webelieve we should continue to pay theseindividuals as early in the month aspossible. Concurrently entitledindividuals who lose eligibility for SSIwill continue to be paid on the 3rd.6. We will not apply payment cyclingto OASDI beneficiaries whose income isdeemed to SSI beneficiaries. The reasonis that most deeming cases involvefamily members who receive Federalincome maintenance benefits. Thosefamily units should continue to receivepayments as early in the month aspossible. Likewise, payment cyclingwill not apply to OASDI beneficiarieswho, due to their income and/orresources, are not entitled to SSI but theState in which they live covers theirMedicare premium. The Health CareFinancing Administration requestedthat these OASDI beneficiaries be paidearly in the month.7. Payment cycling will not apply tobeneficiaries living in a foreign country.For those beneficiaries who will be paidby check because SSA does not havedirect deposit arrangements with thecountry in which they reside, foreigncheck delivery is often unreliable.However, with one delivery day on the3rd of the month it is easier to targetwhen checks should be received than ifthey were sent four times throughoutthe month. Also, since foreignbeneficiaries do not have access to the800 number or to SSA’s field offices inthe country where they reside, thesefacilities will not be adversely affectedif we continue to pay foreignbeneficiaries on the 3rd of the month.The presence of a foreign address forany beneficiary on a Social Securityrecord will mean that all beneficiarieson that record will be paid on the 3rdof the month. The reason is that, foroperational purposes, we are assigning asingle payment day for all individualswho receive benefits on the earningsrecord of a particular individual. Oncea beneficiary has reported a foreignaddress and all individuals receivingbenefits on that account are changed tothe 3rd of the month, the payment dayfor all of them will remain the 3rd of themonth even if the person with theforeign address returns to the U.S. Thisis to prevent potential confusion causedby beneficiaries frequently leaving andentering the U.S.8. We will notify affectedbeneficiaries in writing of the particularmonthly payment day that is assigned tothem. However, the assignment of apayment day is not an initialdetermination and is not appealable.Beneficiaries have never been able tochoose their payment day and will notbe able to choose a payment day underpayment cycling except under veryspecific and limited circumstances.Early ConsultationsPrior to publishing the NPRM, weconducted 10 focus group meetings at 5locations around the country to solicitcomments and obtain reaction from thepublic to cycling payments throughoutthe month. Two meetings were held ineach location: one with currentbeneficiaries age 21 and over and onewith future beneficiaries age 21 andover. After we described our futureworkload projections and resultantservice delivery deterioration, the vastmajority of future beneficiaries withwhom we met said they would not mindbeing paid later in the month.We also conducted a series of separatemeetings with stakeholders includingrepresentatives from the businesscommunity, financial community, othergovernment agencies and advocacygroups. The overwhelming consensus ofopinion among all stakeholders whoparticipated was that SSA shouldimplement some form of paymentcycling.Comments on NPRMOn January 26, 1996, we publishedproposed regulations in the FederalRegister at 61 FR 2654 and provided a60-day period for interested individualsto comment. On February 15, 1996 weheld an informational briefing forrepresentatives of groups andorganizations, and any others, who wereinterested in attending, to providedetails and to answer questions on howSSA proposed to implement paymentcycling.In response to the NPRM, we receivedcomments from 17 commenters. Most ofthe comments came from financialinstitutions, financial trade associations,and State and local human servicesagencies, as well as DT. Severalcomments came from individuals whodid not identify themselves asrepresenting any particular organizationor advocacy group.The comments on the proposed ruleswere overwhelmingly favorable. Fifteencommenters, including bothorganizations and individuals, fullysupported payment cycling. Only twoindividuals expressed opinions againstthe proposed change. The majority ofcommenters also agreed with SSA’sdecision not to cycle currentbeneficiaries.Most of the financial institutions whocommented indicated that paymentcycling would help them to providebetter customer service on or aroundpayment days. One also mentionedpayment cycling easing concerns theycurrently have for the safety of bankemployees and customers on paymentdays due to the large amount of cashthey have on hand on those days.One commenter who identifiedherself as a future beneficiary whowould be covered by payment cyclingsaid she supported it because she wantsSSA to be able to provide the bestpossible service for current beneficiariesand for her when she is eligible to filefor benefits. A human services agencythat supported payment cycling said itis aware of the problems clientscurrently encounter getting through toSSA on or around payment days. Theagency also mentioned cycling as beinga crime deterrent, since it is well knownthat checks arrive on the 3rd.Only two commenters from thefinancial community responded toSSA’s request for information from thebusiness and financial community aboutthe incremental cost or savings to them.One of these two commenters, who fullysupported payment cycling, said ‘‘* * *gradual enrollment of beneficiaries andanticipated increase in the number ofbeneficiaries make it difficult todetermine the costs the bankingindustry will be able to avoid as a resultof the adoption of this policy.’’ Thiscommenter said, ‘‘In addition toeventual long-term cost savings, thereare also payment system risk reductioneffects flowing from this proposal.’’ Theother commenter who responded to thisrequest from SSA, and who also fullysupported payment cycling, said since itapplies prospectively to newbeneficiaries, it will not reduce theircurrent expenses and that it is difficultto quantify future savings at this time.Some of those who supportedpayment cycling suggested changes insome of the specific details aboutcycling. One of the two individuals whowere not in favor of payment cyclingalso submitted comments. Following aresummaries of those suggested changesand comments and our responses tothem:Comment: One commenter said thatinstead of SSA’s toll free 800 numberbeing busy at the beginning of themonth (and SSA having the rest of themonth to get caught up with its otherwork), the toll free 800 number will beconsistently busy throughout the month.