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No: 108-16
Date: December 15, 2003
Senate Passes H.R. 743, the Social Security Protection
Act of 2003
On December 9, 2003, the Senate amended and passed H.R. 743 by unanimous
consent. Unless indicated, the provisions are the same as those included
in the Senate Finance Committee (SFC) approved bill (see Legislative
Bulletin 108-11).
Following are descriptions of the Senate-passed H.R. 743.
Authority to Reissue Benefits Misused by Organizational Representative
Payees
- Would require the Commissioner to re-issue benefits under Titles
II, VIII, or XVI whenever an individual representative payee serving
15 or more beneficiaries, or an organizational representative payee,
is found to have misused a beneficiary's funds.
- Would define “misuse” as when a representative payee
converts benefits for use other than for the beneficiary.
- Would exclude reissued benefits from resources under SSI for
9 months.
- Would be effective for determinations of misuse on or after
January 1, 1995.
Oversight of Representative Payees
- Would require non-governmental fee-for-service organizational
representative payees to be both licensed and bonded, provided that licensing
is available in the State. (This part of provision would be effective
on the first day of the 13th month after enactment.)
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Would require the Commissioner to provide for periodic onsite reviews
for all nonprofit fee-for-service payees, organizational payees (both
governmental and non-governmental) representing 50 or more beneficiaries,
and individual payees representing 15 or more beneficiaries.
- Would require the Commissioner to report annually to Congress
on the results of the onsite reviews.
- Would be effective upon enactment (except as noted above).
Disqualification From Service As Representative Payee of Persons Convicted
of Offenses Resulting in Imprisonment For More Than 1 Year, or Fleeing
Prosecution, Custody, or Confinement
- Would disqualify an individual from serving as a representative
payee if he or she has been convicted of an offense resulting in more
than one year of imprisonment, unless the Commissioner determines that
such certification would be appropriate notwithstanding such conviction.
Also, would disqualify a person who is fleeing prosecution, custody,
or confinement.
- Would require the Commissioner to share information with law
enforcement on persons disqualified from service as representative payee.
- Would require report to Congress 9 months after enactment whether
existing reviews and procedures for payee selection provide sufficient
safeguards.
- Would be effective on the first day of the 13th month after
enactment.
Fee Forfeiture in Case of Benefit Misuse by Representative Payees
- Would require representative payees to forfeit their fee from
the beneficiary's benefits for the months during which the representative
payee misused the funds, as determined by the Commissioner or a court
of competent jurisdiction.
- Would be effective for any month after 180 days after enactment
in which a determination of misuse is made.
Liability of Representative Payees for Misused Benefits
- Would provide that misused benefits by a nongovernmental representative
payee shall be treated as overpayments to the representative payee, subject
to current overpayment recovery authorities.
- Would provide that any recovered benefits not reissued to the
beneficiary pursuant to the first section of this legislation would be
reissued under this provision to the beneficiary or their alternate representative
payee, up to the total amount misused.
- Would be effective with respect to benefit misuse determined
180 days after enactment.
Authority to Redirect Delivery of Benefit Payments When a Representative
Payee Fails to Provide Required Accounting
- Would provide SSA with the authority to redirect payments of
Social Security,
Title VIII, and SSI benefits to local Social Security field offices if
a representative payee fails to provide an annual accounting of benefits
report.
- Would require the Commissioner to provide proper notice prior
to redirecting benefits.
- Would be effective 180 days after enactment.
Survey of Use of Payments to Representative Payee
Would authorize and appropriate up to $8.5 million to the Commissioner
to conduct statistically valid surveys to determine how payments made
to representative payees are being used on behalf of OASDI and SSI beneficiaries.
Would require the Commissioner to submit a report on the survey
to the House Ways and Means and Senate Finance Committees no later than
18 months after enactment.
Would be effective upon enactment.
* SFC-approved bill authorized more money and required OIG to conduct
survey.
Civil Monetary Penalty Authority With Respect to Wrongful Conversions
by Representative Payees
- Would authorize SSA to impose a civil monetary penalty for offenses
involving misuse of Social Security, Title VIII, or SSI benefits received
by a representative payee on behalf of another individual. The penalty
equals up to $5,000 for each violation. In addition, the representative
payee shall be subject to an assessment of not more than twice the amount
of the misused payments.
- Would also authorize SSA to impose administrative sanctions
for the above offense.
- Would be effective for violations committed after the date of
enactment.
Civil Monetary Penalty Authority With Respect to Knowing Withholding
of Material Facts
- Would authorize SSA to impose, in addition to any other penalties
that apply, civil monetary penalties of up to $5,000 (and assessments)
for withholding of information that is material in determining eligibility
for, or the amount of, benefits, if the person knows, or should know,
that the withholding of such information is misleading.
- Would be effective with respect to violations committed after
the date on which the Commissioner implements the centralized computer
file required under the following section.
Issuance by Commissioner of Social Security of Receipts to Acknowledge
Submission of Reports of Changes in Work or Earnings Status of Disabled
Beneficiaries
- Would require the Commissioner to issue a receipt to disabled
beneficiaries each time they report their work and earnings.
- Would be effective as soon as possible, but no later than 1
year after enactment and until such time as the Commissioner implements
centralized computer file.
Denial of Title II Benefits to Persons Fleeing Prosecution, Custody,
or Confinement, and to Persons Violating Probation or Parole
Requirements Relating to Offers to Provide for a Fee, a Product, or
Service Available without Charge from the Social Security Administration
- Would amend Section 1140 by adding a mandatory requirement that
persons or companies include in their solicitations a statement that
services which they provide for a fee are available directly from SSA
free of charge.
- Would require that the statements comply with standards promulgated
by the Commissioner with respect to their content, placement, visibility,
and legibility.
- Would be effective for offers of assistance made after sixth
month after enactment.
- Would require that regulations be promulgated within 1 year
after enactment.
Refusal to Recognize Certain Individuals as Claimant Representatives
Use of Symbols, Emblems, or Names in Reference to Social Security or
Medicare
- Would update section 1140 for HCFA’s new name (Centers
for Medicare and Medicaid Services). The section adds Death Benefits
Update, Federal Benefits Information, Funeral Expenses, etc. as items
prohibited from the use of symbols, emblems or names that may provide
a false impression that the item is approved or endorsed by SSA, CMS
or HHS.
- Would be effective for items sent 180 days after enactment.
Disqualification from Payment During Trial Work Period Upon Conviction
of Fraudulent Concealment of Work Activity
- Would provide that an individual who is convicted by a Federal
court of fraudulently concealing work activity during the trial work
period (TWP) would not be entitled to receive a disability benefit for
TWP months that occur prior to the conviction but within the same period
of disability. If payment has already been made, he or she is liable
for repayment plus restitution, fines, penalties and assessments.
- Would be effective with respect to work activity performed after
date of enactment.
Authority for Judicial Orders of Restitution
Authorize Cross-Program Recovery for Benefit Overpayments
- Would allow the Social Security Administration to more fully
recover overpayments paid under one program from the benefits paid under
another program.
- Would provide for withholding up to 100% of any underpayment
and 10% of ongoing monthly benefits. To protect low-income beneficiaries,
any recovery from SSI would be limited to the lesser of 100% of the monthly
benefit or 10% of individual’s total monthly income.
- Would be effective with respect to overpayments that are outstanding
at the time of enactment.
Prohibit Benefits to Persons Not Authorized to Work in the United States
Cap on Attorney Assessments
- Would cap the assessment for SSA processing attorney fees at
$75 or 6.3% of attorney fee, whichever is lower.
- Would adjust cap based on annual COLA’s rounded down to
next lower $1.
- Would be effective 180 days after enactment.
Temporary Extension of Attorney Fee Payment System to Title XVI Claims
Nationwide Demonstration Project Providing for Extension of Fee Withholding
Procedures to Non-Attorney Representatives
GAO Study Regarding the Fee Payment Process for Claimant Representatives
Application of Demonstration Authority Sunset Date to New Projects
- Would extend the demonstration authority through December 18,
2005, and would allow projects initiated by December 17, 2005 to be completed
thereafter. The current authority expires on December 17, 2004.
Expansion of Waiver Authority Available in Connection with Demonstration
Projects Providing for Reductions in Disability Insurance Benefits Based
on Earnings
- Would provide the Commissioner with the authority to waive requirements
of section 1148 of the Social Security Act for the mandated demonstration
projects.
- Would be effective upon enactment.
Funding of Demonstration Projects Provided for Reductions in Disability
Insurance Benefits Based on Earnings
Availability of Federal and State Work Incentive Services to Additional
Individuals
- Would allow Benefits Planning, Assistance, and Outreach (BPAO)
services and Protection and Advocacy (P&A) systems services to be
provided to those beneficiaries in section 1619(b) status, those beneficiaries
receiving only a State Supplement payment, and those beneficiaries in
an extended period of Medicare eligibility under Title XVIII after a
period of disability under Title II has ended.
- Would allow P&A System services to include those needed
to maintain employment (in addition to those needed to secure or regain
it).
- Would be effective with respect to: (1) grants, cooperative
agreements or contracts entered into on or after the date of enactment;
and, (2) payments provided after the date of enactment.
Technical Amendment Clarifying Treatment for Certain Purposes of Individual
Work Plans under the Ticket to Work and Self-Sufficiency Program
- Would treat an individual receiving vocational rehabilitation
pursuant to an individual work plan established under the Ticket to Work
program the same as an individual with an individualized work plan under
a State plan for vocational rehabilitation services approved under the
Rehabilitation Act of 1973, thereby making employers who hire such individuals
eligible for the worker opportunity tax credit.
- Would be effective as if enacted in section 505 of P.L. 106-170
(i.e., applies to individuals who began work for the employer after June
30, 1999).
GAO Report on Ticket to Work
- Would require that GAO study and report on the effectiveness
of the Ticket to Work program, including the annual and interim reports
issued, effectiveness of program activities, and any recommended changes.
- The report would be due no later than one year after the date
of enactment.
Reauthorization of Appropriations for Certain Work Incentives Programs
Elimination of Transcript Requirement in Remand Cases Fully Favorable
to the Claimant
- Would provide that the Agency does not have to prepare and file
a transcript with the district court after a court-ordered remand for
further administrative proceedings results in a fully-favorable award
of benefits.
- Would be effective with respect to determinations made upon
remand on or after the date of enactment.
Nonpayment of Benefits upon Removal from the United States
- Would end the exemption from nonpayment of benefits for aliens
removed from the United States for smuggling other aliens into the United
States.
- Would apply to removal notices received from the Attorney General
and Secretary of Homeland Security after the date of enactment.
Reinstatement of Certain Reporting Requirements
- Would continue the requirement for the Board of Trustees report
on the OASDI, HI, and SMI trust funds, continuing disability reviews
reports, and the disability preeffectuation review report.
- Would be effective upon enactment.
Clarification of Definitions Regarding Certain Survivor Benefits
- Would provide a limited exception to the 9-month duration-of-marriage
requirement for widow(er)’s benefits. This exception would apply
in cases in which the marriage was postponed by legal impediments caused
by State restrictions on divorce due to mental incompetence or similar
incapacity.
- Would apply to applications filed during months ending after
the date of enactment.
Clarification Respecting the FICA and SECA Tax Exemptions for an Individual
Whose Earnings Are Subject to the Laws of a Totalization Agreement Partner
- Would provide clear legal authority to exempt a worker’s
earnings from U.S. Social Security tax in cases where their earnings
were subject to a foreign country’s laws in accordance with a U.S.
totalization agreement, but the foreign country’s law does not
require compulsory contributions with respect to those earnings.
- Would be effective upon enactment.
Coverage under Divided Retirement System for Public Employees in Kentucky
and Louisiana
Compensation for the Social Security Advisory Board
- Would establish compensation for Social Security Advisory Board
members at the daily rate of basic pay for level IV of the Senior Executive
Schedule for each day in which the member is engaged in the business
of the Board.
- Would be effective January 1, 2003.
60-Month Period of Employment Requirement for Application of Government
Pension Offset Exemption
Disclosure to Workers of Effect of Windfall Elimination Provision and
Government Pension Offset Provision
Post-1956 Military Wage Credits
- Would transfer from general funds the remaining balance owed
to the Social Security and Medicare trust funds for deemed military wage
credits for 2000 and 2001 and make conforming amendments to reflect the
termination of deemed military wage credits.
- Would be effective upon enactment.
Elimination of Disincentive to Return-To-Work for Childhood Disability
Beneficiaries
Technical Correction Relating to Responsible Agency Head
- Would delete all references to the “Secretary of Health
and Human Services” found in Section 1143 (which requires issuance
of Social Security Statements) of the Social Security Act and replaces
them with the “Commissioner of Social Security.”
- Would be effective upon enactment.
Technical Correction Relating to Retirement Benefits of Ministers
- Would provide a conforming change to the Social Security Act
to exclude, for Social Security benefit purposes, certain benefits received
by retired ministers and members of religious orders. This would conform
the treatment of these benefits to their treatment for Social Security
tax purposes.
- Would be effective for years beginning before, on, or after
December 31, 1994.
Technical Corrections Relating to Domestic Employment
- Would provide that references to domestic employment be removed
from the provisions in the law that define agricultural employment, and
the provisions that define domestic employment would specify that domestic
employment includes domestic service performed on a farm.
- Would be effective upon enactment.
Technical Corrections of Outdated References
- Would correct various outdated references in the Social Security
Act and related laws. Over the years, provisions of the Social Security
Act, the Internal Revenue Code, and other laws have been deleted, re-designated,
or otherwise amended.
Technical Correction Respecting Self-Employment Income in Community Property
States
- Would conform the provision in the Social Security Act and the
Internal Revenue Code to current practice in both community property
and non-community property States--to provide that income from a trade
or business that is not a partnership will be taxed and credited to the
spouse who is carrying on the trade or business or to each spouse based
on their distributive share of the gross earnings, if jointly operated.
- Would be effective upon enactment.
Technical Changes to the Railroad Retirement and Survivors' Improvement
Act of 2001
- Would make a number of technical and clerical changes regarding
Railroad Retirement Investment Trust relating to quorum rules, transfers,
investments, administrative expenses and exemption from State and local
taxes.
- Would be effective upon enactment.
Exclusion from Income for Certain Infrequent or Irregular Income and
Certain Interest or Dividend Income
- Would change the calculation of infrequent and irregular income
from a monthly to a quarterly basis. Also would exclude from the determination
of an individual’s income all interest and dividend income earned
on countable resources.
- Would be effective with respect to benefits payable for months
that begin more than 90 days after the date of enactment.
Uniform 9-Month Resource Exclusion Periods
- Would increase to 9 months and make uniform the time period
for excluding from resources amounts attributable to payments of past-due
Social Security and SSI benefits and earned income and child tax credits.
- Would be effective for benefits payable on or after the date
of enactment
Elimination of Certain Restrictions on the Application of the Student
Earned Income Exclusion
- Would permit the student earned income exclusion to apply to
any individual under age 22 who is a student. Thus, students under age
22 who are married or heads of households would be eligible for the exclusion.
- Would be effective for benefits payable beginning 1 year after
month of enactment.
Exception to Retrospective Monthly Accounting for Nonrecurring Income
- Would eliminate triple counting by providing that one-time,
nonrecurring income would be counted only for the month that the income
is received, and not for any other month during the transition to retrospective
monthly accounting during the first 3 months of an individual’s
SSI eligibility.
- Would be effective for benefits payable for months that begin
on or after 1 year after the date of enactment.
Removal of Restriction on Payment of Benefits to Children Who Are Born
or Who Become Blind or Disabled after Their Military Parents Are Stationed
Overseas
- Would extend the current law exception for SSI eligibility for
blind and disabled children of military personnel whose eligibility is
established prior to their going overseas to blind and disabled children
of military personnel who were born overseas, who became blind or disabled
while overseas, or who first applied for SSI benefits overseas.
- Would be effective for benefits payable for months beginning
after enactment, but only on the basis of an application filed after
enactment.
Treatment of Education-Related Income and Resources
- Would exclude from the determination of income any gift to an
individual for use in paying tuition or educational fees, just as grants,
scholarships and fellowships for such use are currently excluded from
the determination of income.
- Would also exclude grants, scholarships, fellowships, or gifts
to be used for tuition or education fees from an individual’s countable
resources for 9 months after the month of receipt.
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Would be effective for benefits payable for months that begin more
than 90 days after the date of enactment.
Monthly Treatment of Uniformed Service Compensation
- Would count cash military compensation as reported on a monthly
leave and earnings statement issued by the military, which reflects compensation
earned in the prior month, as received in the prior month.
- Would be effective for benefits payable for months that begin
more than 90 days after the date of enactment.
NOTE: The following provisions that were dropped from the SFC-approved
bill:
* Requirement that State and local government pension paying entities
indicate on a modified form 1099R whether a pension is based on work
not covered by Social Security.
* Modifications of the SSI dedicated account requirement
* Exclusion of AmeriCorps and other volunteer benefits for purposes
of determining SSI and SSDI
* Update SSI resource limits
* Review of State agency SSI blindness and disability determinations.
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