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6120 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulationscommenters agreed with SSA’s decisionnot to cycle current beneficiaries.Comment: One commenterrecommended that SSA launch acomprehensive educational program toadvise all stakeholders of the newpayment dates once adopted.Response: Individual beneficiarieswhose benefits are cycled will receivean informational pamphlet explainingpayment cycling and a calendarproviding them with the scheduledpayment dates. Also, SSA is puttingtogether informational material aboutpayment cycling which will be madeavailable to financial institutions andbusinesses to help them respond to anyconcerns raised by their customers.After considering the comments onthe proposed regulations, we havechanged § 404.1807(c)(4), as discussedabove in the response to the publiccomment. Also, upon furtherconsideration, we have decided torevise § 404.1807(c)(5) to show thatindividuals who become entitled on onerecord and later entitled on anotherrecord, without a break in entitlement,will be paid all benefits to which theyare entitled no later than their currentpayment day. In addition, we havemade several nonsubstantive changes tothe proposed regulations. We are,therefore, publishing these regulationsas final regulations.Regulatory ProceduresExecutive Order 12866We have determined that these finalregulations meet the criteria for asignificant regulatory action underExecutive Order 12866. Therefore, weprepared and submitted to OMB anassessment of the potential benefits andcosts of this regulatory action. Thisassessment also contains an analysis ofalternative policies we considered andchose not to adopt. It is available forreview by members of the public bycontacting SSA.Regulatory Flexibility ActThese final regulations affect whenSocial Security recipients receive theirpayments. Recipients are not smallentities within the definition of theRegulatory Flexibility Act. Therefore,these final regulations will not have asignificant impact on a substantialnumber of small entities.Paperwork Reduction ActThese final regulations impose noreporting/recordkeeping requirementsnecessitating clearance by OMB.(Catalog of Federal Domestic AssistanceProgram Nos. 96.001 Social Security-Disability Insurance; 96.002 Social Security-Retirement Insurance; 96.003 Social Security-Special Benefits for Persons Aged 72 andOver; 96.004 Social Security-SurvivorsInsurance)List of Subjects in 20 CFR Part 404Administrative Practice andProcedure, Blind benefits, Old-Age,Survivors and Disability Benefits;Reporting and recordkeepingrequirements; Social Security.Dated: January 28, 1997.Shirley S. Chater,Commissioner of Social Security.For the reasons set forth in thepreamble, subparts J and S of part 404of chapter III of title 20 of the Code ofFederal Regulations are amended as setforth below.PART 404—FEDERAL OLD-AGE,SURVIVORS AND DISABILITYINSURANCE (1950– )Subpart J—[Amended]1. The authority citation for subpart Jof part 404 continues to read as follows:Authority: Secs. 201(j), 205(a), (b), (d)–(h),and (j), 221, 225, and 702(a)(5) of the SocialSecurity Act (42 U.S.C. 401(j), 405 (a), (b),(d)–(h), and (j), 421, 425 and 902(a)(5)); 31U.S.C. 3720A; sec. 5, Pub. L. 97–455, 96 Stat.2500 (42 U.S.C. 405 note); secs. 5, 6 (c)–(e),and 15, Pub. L. 98–460, 98 Stat. 1802 (42U.S.C. 421 note).2. Section 404.903 is amended byremoving the word ‘‘and’’ at the end ofparagraph (q), and by removing theperiod at the end of paragraph (r) andadding a semicolon and the word ‘‘and’’in its place, and adding paragraph (s) toread as follows:§ 404.903 Administrative actions that arenot initial determinations.* * * * *(s) The assignment of a monthlypayment day (see § 404.1807).Subpart S—[Amended]3. The authority citation for subpart Sof part 404 is revised to read as follows:Authority: Secs. 205 (a) and (n), 207,702(a)(5), and 708(a) of the Social SecurityAct (42 U.S.C. 405 (a) and (n), 407, 902(a)(5)and 909(a)).4. Section 404.1805 is amended byrevising paragraph (a)(3) to read asfollows:§ 404.1805 Paying benefits.(a) * * *(3) The time at which the payment orpayments should be made in accordancewith § 404.1807.* * * * *5. Section 404.1807 is added to readas follows:§ 404.1807 Monthly payment day.(a) General. Once we have made adetermination or decision that you areentitled to recurring monthly benefits,you will be assigned a monthly paymentday. Thereafter, any recurring monthlybenefits which are payable to you willbe certified to the Managing Trustee fordelivery on or before that day of themonth as part of our certification under§ 404.1805(a)(3). Except as provided inparagraphs (c)(2) through (c)(6) of thissection, once you have been assigned amonthly payment day, that day will notbe changed.(b) Assignment of payment day. (1)We will assign the same payment dayfor all individuals who receive benefitson the earnings record of a particularinsured individual.(2) The payment day will be selectedbased on the day of the month on whichthe insured individual was born.Insured individuals born on the 1stthrough the 10th of the month will bepaid on the second Wednesday of eachmonth. Insured individuals born on the11th through the 20th of the month willbe paid on the third Wednesday of eachmonth. Insured individuals born afterthe 20th of the month will be paid onthe fourth Wednesday of each month.See paragraph (c) of this section forexceptions.(3) We will notify you in writing ofthe particular monthly payment day thatis assigned to you.(c) Exceptions. (1) If you or any otherperson became entitled to benefits onthe earnings record of the insuredindividual based on an application filedbefore May 1, 1997, you will continueto receive your benefits on the 3rd dayof the month (but see paragraph (c)(6) ofthis section). All persons whosubsequently become entitled tobenefits on that earnings record will beassigned to the 3rd day of the month asthe monthly payment day.(2) If you or any other person becomeentitled to benefits on the earningsrecord of the insured individual basedon an application filed after April 30,1997, and also become entitled toSupplemental Security Income (SSI)benefits or have income which isdeemed to an SSI beneficiary (per§ 416.1160), all persons who are orbecome entitled to benefits on thatearnings record will be assigned to the3rd day of the month as the monthlypayment day. We will notify you inwriting if your monthly payment day isbeing changed to the 3rd of the monthdue to this provision.(3) If you or any other person becomeentitled to benefits on the earningsrecord of the insured individual basedon an application filed after April 30,