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43202 Federal Register / Vol. 72, No.

149 / Friday, August 3, 2007 / Proposed Rules

requirements and has assigned OMB Control also deliver them to the Office of 95–572, 95th Cong., 1st Sess., at 28.)
Number 2120–0056. Regulations, Social Security The GPO treats these government
Related Information Administration, 107 Altmeyer Building, workers similar to workers in jobs
(h) Refer to MCAIEASA Airworthiness 6401 Security Boulevard, Baltimore, MD covered by Social Security. Workers
Directive 2006–0257, dated August 24, 2006; 21235–6401, between 8 a.m. and 4:30 who earn their own Social Security
Airbus Service Bulletin A300–53–6154, p.m. on regular business days. retirement benefit, and who are eligible
including Appendix 01, dated June 20, 2006; Comments are posted on the Federal to receive a spouse’s benefit, have the
and Airbus A300–600 Airworthiness eRulemaking Portal, or you may inspect spouse’s benefit, in effect, offset by their
Limitations Items Document AI/SE–M2/ them physically on regular business retirement benefit. They receive the
95A.0502/06, Issue 11, dated April 2006; for days by making arrangements with the larger of the two benefits. They do not
related information. contact person shown in this preamble. receive both their own Social Security
Issued in Renton, Washington, on July 25, FOR FURTHER INFORMATION CONTACT: Ines retirement benefit and a spouse’s
2007. Riley, Social Insurance Specialist, Office benefit. Therefore, the GPO prevents
Stephen P. Boyd, of Income Security Programs, Social individuals who receive a government
Acting Manager, Transport Airplane Security Administration, RRCC #126, pension based on noncovered earnings
Directorate, Aircraft Certification Service. 6401 Security Boulevard, Baltimore, from receiving more in combined
[FR Doc. 07–3774 Filed 8–2–07; 8:45 am] Maryland 21235–6401, (410) 965–4138. pension and Social Security spouse’s
BILLING CODE 4910–13–M For information on eligibility or filing benefits than individuals who worked
for benefits, call our national toll-free in covered employment and also were
number, 1–800–772–1213 or TTY 1– eligible for spouse’s benefits. The GPO
SOCIAL SECURITY ADMINISTRATION 800–325–0778, or visit our Internet site, adjusts the spouse’s benefit of a
Social Security Online, at http:// government worker to prevent a
[Docket No. SSA 2007–0040] ‘‘windfall.’’ (See H. Rep. No. 100–391(I),
www.socialsecurity.gov.
100th Cong., 2nd Sess., at 2313–466.)
20 CFR Part 404 SUPPLEMENTARY INFORMATION: Before enactment of the SSPA, Public
RIN 0960–AG50 Electronic Version Law 108–203, on March 2, 2004, the law
allowed an exception to the application
Sixty-Month Period of Employment The electronic file of this document is of the GPO, referred to as the ‘‘last day’’
Requirement for Government Pension available on the date of publication in exception. Under this exception, State
Offset Exemption the Federal Register at http:// or local government workers could
www.gpoaccess.gov/fr/index.html. avoid application of the GPO by
AGENCY: Social Security Administration working 1 day in Social Security
(SSA). Background
covered employment at the end of their
ACTION: Notice of proposed rulemaking. If you receive a pension from a career.
Federal, State or local government that Section 418 of the SSPA phases out
SUMMARY: To implement section 418 of is based on work that was not covered the ‘‘last day’’ exception. Applications
the Social Security Protection Act of by Social Security, then the GPO may for spouse’s benefits filed on or after
2004 (SSPA), we propose to revise our reduce certain kinds of Social Security April 1, 2004 will be subject to the GPO
regulations to explain that a State or benefits that you might also be eligible unless the individual’s last 60 months of
local government worker will be subject to receive. The GPO applies to Social government employment are covered by
to the Government Pension Offset (GPO) Security wife’s, husband’s, widow’s, Social Security. Therefore, if there is
provision under title II of the Social widower’s, mother’s or father’s, and any noncovered government
Security Act (the Act), if any part of the divorced or surviving divorced spouse’s employment during the last 60 months
last 60 months of government service benefits. For the sake of simplicity, of government service on which a
was not covered by Social Security. We these benefits are often referred to as pension is based, the GPO will apply.
also propose to replace the words spouse’s benefits, even though other State or local government workers who
‘‘receiving’’ and ‘‘received’’ with the benefits, as described in the previous filed an application for spouse’s benefits
word ‘‘payable’’ when referring to the sentence, are affected. These benefits before April 1, 2004, or whose last day
eligibility to or payout from a may be reduced, to zero if necessary, by of government employment was before
government pension. This wording two-thirds of the amount of your July 1, 2004, are exempt from the GPO
change will make the regulatory and government pension from noncovered if they worked in covered employment
statutory language consistent and help work. See section 202(k)(5) of the Act, on the last day of the government
clarify when the GPO is applicable. In codified at 42 U.S.C. 402(k)(5). The GPO service on which their pension is based.
addition, we propose to revise our does not apply to Social Security The last 60-month requirement
regulations to reflect a separate 60- retirement or disability benefits that you established by section 418 of the SSPA
month requirement that was made earned through your own covered is similar to a requirement established
applicable to Federal employees by a employment. by the Omnibus Budget Reconciliation
1987 law. The GPO was enacted in 1977 to Act of 1987 (OBRA 1987), Public Law
DATES: To be sure that we consider your reduce the Social Security spouse’s 100–203, section 9007. That law
comments, we must receive them by benefit of workers who have a specified that Federal employees who
October 2, 2007. government pension based on transfer from the Civil Service
ADDRESSES: You may give us your noncovered employment. Congress Retirement System to the new Federal
comments by: Internet through the believed that persons who received a Employees Retirement System must
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Federal eRulemaking Portal at http:// government pension based on their own work for at least 60 months in the
www.regulations.gov; e-mail to noncovered work would receive a aggregate in covered employment in
regulations@ssa.gov; telefax to (410) ‘‘windfall’’ if they also could receive order to avoid application of the GPO.
966–2830; or letter to the Commissioner unreduced Social Security spouse’s For workers whose last day of State or
of Social Security, P.O. Box 17703, benefits, regardless of their dependency local government employment occurs
Baltimore, MD 21235–7703. You may on the insured spouse. (See S. Rep. No. within 5 years after the date of

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Federal Register / Vol. 72, No. 149 / Friday, August 3, 2007 / Proposed Rules 43203

enactment (that is, between March 2, 1 month) by the total number of months private schools. Thus, a teacher may
2004 and March 1, 2009), the 60-month of Social Security covered employment work for 25 years in a public school and
requirement will be reduced (but not to under the State or local retirement 5 years in a private school and both jobs
less than 1 month) by the total number system worked on or before March 2, participate in the same pension plan.
of months that the worker served in 2004. We also propose to revise this However, because the GPO applies only
covered employment on or before March paragraph to explain that, for the to public employment, the portion of
2, 2004. The remaining month(s) of purposes of this transitional rule, we the pension attributable to work in the
service needed to fulfill this 60-month will count as a month of employment private sector is not subject to the GPO.
requirement must be performed after any month in which the individual In addition, the ‘‘last day’’ GPO
March 2, 2004. Therefore, even if a worked in covered government exception, as well as the new 60-month
worker had 60 or more months of employment for at least one day. exception, applies only to public
covered government service on or before We also propose to revise this employment. Therefore, a teacher whose
March 2, 2004, that worker would still paragraph to explain that if an last day of employment, or last 60
have to work his or her last month of individual’s Social Security benefit is months, is with a private school is not
covered government service after March reduced because of GPO and he or she exempt from GPO for that part of his or
2, 2004. later returns to work for a government her pension that is based on noncovered
agency, his or her Social Security government service.
Explanation of Proposed Changes benefit will continue to be reduced
We propose to revise the regulations unless he or she works at least 60 Clarity of These Rules
in 20 CFR 404.408a as described below months in covered employment for the Executive Order 12866, as amended,
to reflect the changes enacted under same employer or in the same pension requires each agency to write all rules
section 418 of the SSPA and section plan. We are proposing this revision to in plain language. In addition to your
9007 of OBRA 1987. clarify that a person who worked for one substantive comments on these
Section 404.408a(a) When reduction government agency could not return to proposed rules, we invite your
is required. This paragraph describes the work for another agency and earn an comments on how to make them easier
conditions under which we will apply exemption from the GPO unless the to understand. For example:
the GPO. This paragraph also explains work was covered by the same pension • Have we organized the material to
how we will determine what the plan. suit your needs?
monthly pension amount is if the We also propose to revise this • Are the requirements in the rules
pension is not paid monthly or is paid paragraph to better explain how we treat clearly stated?
in a lump sum. We propose to revise government pensions that are not paid • Do the rules contain technical
this paragraph to explain that we will monthly or in a lump sum and how this language or jargon that isn’t clear?
apply the GPO: information is obtained. • Would a different format (grouping
1. To the monthly Social Security Section 404.408a(b) Exceptions. and order of sections, use of headings,
wife’s, husband’s, widow’s, widower’s, This paragraph describes the conditions paragraphing) make the rules easier to
mother’s or father’s, or divorced or under which the GPO does not apply. understand?
surviving divorced spouse’s benefit for We propose to revise this paragraph to • Would more (but shorter) sections
each month a monthly pension from the include an exception for 60 months or be better?
Federal government based on more of Federal government • Could we improve clarity by adding
noncovered employment is payable, employment covered under Social tables, lists, or diagrams?
unless the individual meets one of the Security as provided by section 9007 of • What else could we do to make the
exceptions in paragraph (b) of this OBRA 1987. This new exception would rules easier to understand?
section; follow the existing five exceptions and
2. To the monthly Social Security be designated as paragraph (b)(6). Regulatory Procedures
wife’s, husband’s, widow’s, widower’s, Section 404.408a(d) Amount and
Executive Order 12866, as Amended
mother’s or father’s, or divorced or priority of reduction. This paragraph
surviving divorced spouse’s benefit if describes the amount of the GPO We have consulted with the Office of
the State or local government reduction and the order in which the Management and Budget (OMB) and
employee’s application for benefits was GPO reduction will be made in relation determined that these proposed rules
filed before April 1, 2004, or his or her to reductions for age and simultaneous meet the requirements for a significant
last day of employment was worked entitlement to other Social Security regulatory action under Executive Order
before July 1, 2004, and the last day was benefits. We propose to add an 12866, as amended. Thus, they were
not covered by Social Security; and explanation that if a person’s pension is subject to OMB review.
3. To the monthly Social Security based on both government employment Administrative costs attributable to
wife’s, husband’s, widow’s, widower’s, and private sector employment, the GPO the publication of this regulation are
mother’s or father’s, or divorced or will apply to the part of the pension estimated to be negligible (i.e., less than
surviving divorced spouse’s benefit if based on noncovered governmental 25 work years and $2 million). At the
the State or local government work. It will not apply to the part of the time of enactment of the SSPA, we
employee’s application for benefits was pension that is attributable to earnings estimated that this change would result
filed on or after April 1, 2004 and any from a nongovernmental entity. Because in a reduction in the Old-Age, Survivors
portion of the last 60 months of the GPO was designed to offset the and Disability Insurance (OASDI)
government service was not covered by Social Security spouse’s benefit by the benefits of $5 million over the first 5
Social Security. However, if the amount of the pension that was based years, and $39 million over the first 10
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individual files an application for on noncovered government years. We estimate that the effect of this
benefits on or after April 1, 2004 and the employment, the offset should apply change will be small initially, but will
individual’s last day of service occurs only to the governmental part of the grow during the projection period such
after June 30, 2004 and before March 2, pension. Some individuals work for that in the 10th year there will be about
2009, we propose to reduce the 60- school systems that have a public 1,500 beneficiaries with GPO offset
month requirement (but not to less than pension plan that also credits work for because of this change, with a decrease

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43204 Federal Register / Vol. 72, No. 149 / Friday, August 3, 2007 / Proposed Rules

in benefits during that year of about $10 Authority: Secs. 202, 203, 204(a) and (e), months altogether in covered
million. The year-by-year estimates of 205(a) and (c), 216(l), 222(c), 223(e), 224, 225, employment. We will reduce the last 60-
these benefit payment reductions are 702(a)(5), and 1129A of the Social Security month requirement (but not to less than
presented in the table below. Act (42 U.S.C. 402, 403, 404(a) and (e), 405(a) 1 month) by the total number of months
and (c), 416(l), 422(c), 423(e), 424a, 425,
902(a)(5), and 1320a–8a and 48 U.S.C. 1801.
you performed in Social Security
Reduction in covered employment, under the same
Fiscal year OASDI 2. Amend § 404.408a by revising State or local retirement system, on or
benefits paragraph (a), adding paragraph (b)(6)
(in millions) before March 2, 2004. The months do
and revising paragraph (d)(1) to read as not have to be consecutive. You must
2004 ...................................... (1/) follows: work the remaining number of months
2005 ...................................... (1/) needed to total 60 months of covered
§ 404.408a Reduction where spouse is
2006 ...................................... $1
receiving a Government pension. government employment after March 2,
2007 ...................................... 1 2004. Therefore, even if you have 60 or
2008 ...................................... (a) When reduction is required. For
2 more months of covered government
2009 ...................................... the purposes of this section, we use the
4 employment on or before March 2, 2004,
2010 ...................................... term ‘‘Government pension’’ to mean a
5
you must work your last month of
2011 ...................................... monthly pension from a Federal, State,
7
covered government employment after
2012 ...................................... 8
or local government agency for which
2013 ...................................... 10 March 2, 2004. We consider
you were employed in work not covered employment of at least 1 day in a given
by Social Security. month to be a month of employment.
Totals:
2004–08 ............................ 5
(1) Unless you meet one of the (4) If you receive a Government
exceptions in paragraph (b) of this pension based on noncovered
2004–13 ............................ 39 section, your monthly Social Security employment and later return to work for
1/ Reduction in benefit payments of less than
benefits as a wife, husband, widow, a government agency, your monthly
$500,000.
widower, mother or father, divorced or Social Security benefit as a wife,
surviving divorced spouse will be husband, widow, widower, mother or
Regulatory Flexibility Act reduced each month that a periodic father, divorced or surviving divorced
We certify that these proposed rules, benefit is payable to you from the spouse will always be reduced because
when published in final, would not Federal government for work you of your Government pension, unless the
have a significant economic impact on performed that was not covered by later work is covered by Social Security
a substantial number of small entities Social Security. and you work at least 60 months in
because they affect only individuals. (2) If you filed an application for covered employment for the same
Thus, a regulatory flexibility analysis as Social Security benefits as a wife, employer or in the same pension plan.
provided in the Regulatory Flexibility husband, widow, widower, mother or For purposes of this section, Federal
Act, as amended, is not required. father, divorced or surviving divorced Government employees performing
spouse before April 1, 2004, or your work that is covered by Medicare, but
Paperwork Reduction Act work with a State or local government not otherwise covered by Social
These proposed regulations would ended before July 1, 2004, your benefits Security, are not considered to be
impose no reporting or recordkeeping will be reduced each month a periodic performing work covered by Social
requirements subject to OMB clearance. benefit from a State or local government Security.
pension plan is payable to you, if the (5)(i) If the Government pension is not
(Catalog of Federal Domestic Assistance
Program Nos. 96.001, Social Security—
pension is based on work that was not paid monthly or is paid in a lump-sum,
Disability Insurance; 96.002, Social covered by Social Security on the last we will allocate it on a basis equivalent
Security—Retirement Insurance; 96.004, day of employment unless you meet one to a monthly benefit and then reduce
Social Security—Survivors Insurance.) of the exceptions in paragraph (b) of this the monthly Social Security benefit
section. accordingly.
List of Subjects in 20 CFR Part 404 (3)(i) If you file an application for (ii) We will generally obtain
Administrative practice and Social Security benefits as a wife, information about the number of years
procedure, Blind, Disability benefits, husband, widow, widower, mother or covered by a lump-sum payment from
Old-Age, Survivors and Disability father, divorced or surviving divorced the pension plan.
Insurance; Reporting and recordkeeping spouse on or after April 1, 2004, and (iii) If one of the alternatives to a
requirements, Social Security. your work with a State or local lump-sum payment is a life annuity,
Dated: May 30, 2007. government ended July 1, 2004 or later, and the amount of the monthly or other
your benefits will be reduced each periodic payment can be determined,
Michael J. Astrue,
month that a periodic benefit is payable we will base the reduction on that
Commissioner of Social Security.
to you from a State or local government amount.
For the reasons set out in the pension plan for which you were (iv) Where the period or the
preamble, we propose to amend subpart employed in work not covered by Social equivalent monthly pension benefit is
E of part 404 of chapter III of title 20 of Security during any portion of your last not clear, it may be necessary for us to
the Code of Federal Regulations as set 60 months of such service that ends determine the reduction period on an
forth below: with your last day of employment, individual basis.
unless you meet one of the exceptions (b) * * *
PART 404— FEDERAL OLD-AGE,
in paragraph (b) of this section. (6) If you receive a pension for
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SURVIVORS AND DISABILITY


(ii) If the last day of your State or local Federal Government employment and
INSURANCE (1950– )
government service occurs after June 30, that employment was covered under
Subpart E—[Amended] 2004 and before March 2, 2009, we may Social Security for 60 months or more
reduce the requirement that you must in the aggregate during the period
1. The authority citation for subpart E work your last 60 months in covered beginning January 1, 1988 and ending
of part 404 continues to read as follows: employment. You still must work 60 with the first month of entitlement to

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Federal Register / Vol. 72, No. 149 / Friday, August 3, 2007 / Proposed Rules 43205

Social Security benefits as a wife, also comment via the Internet to the 313. The Adam Walsh Child Protection
husband, widow, widower, mother or Bureau at BOPRULES@BOP.GOV or by and Safety Act of 2006 (Pub. L. 109–
father, divorced or surviving divorced using the http://www.regulations.gov 248) (Walsh Act), enacted July 27, 2006,
spouse. comment form for this regulation. When amended title 18 of the United States
* * * * * submitting comments electronically you Code, Chapter 313, to add a new section
(d) * * * must include the BOP Docket No. in the 4248. Section 4248 authorizes the
(1)(i) If you became eligible for a subject box. Bureau to certify to federal district
Government pension based on FOR FURTHER INFORMATION CONTACT: courts that certain persons are ‘‘sexually
noncovered service after June 1983, we Sarah Qureshi, Office of General dangerous persons’’ for whom civil
will reduce (to zero, if necessary) your Counsel, Bureau of Prisons, phone (202) commitment is required. Certification
monthly Social Security benefits as a 307–2105. stays the release of the person and
wife, husband, widow, widower, mother initiates district court proceedings
SUPPLEMENTARY INFORMATION:
or father, divorced or surviving divorced pursuant to 18 U.S.C. 4248(a), (b), (c),
spouse by two-thirds the amount of your Posting of Public Comments and (d).
monthly pension. The filing of the certificate by the
Please note that all comments
(ii) If your Government pension is Bureau stays the release of the person;
received are considered part of the
based in part on earnings from a however, the final determination that a
public record and made available for
nongovernmental entity, we will base person is ‘‘a sexually dangerous person’’
public inspection online at http://
the amount of the reduction on only the subject to civil commitment is made by
www.regulations.gov. Such information
the court after proceedings held
portion of the pension that is based on includes personal identifying
pursuant to 18 U.S.C. 4248(b) and (c),
noncovered government service. We information (such as your name,
which make applicable the procedures
will not consider that portion of the address, etc.) voluntarily submitted by
set forth in 18 U.S.C. 4247(b), (c), and
pension that is attributable to the the commenter.
(d). As provided in § 4248(b), the court
nongovernmental earnings in If you want to submit personal
may order that a psychiatric or
determining the amount of the identifying information (such as your
psychological examination of the person
reduction. name, address, etc.) as part of your be conducted, and that a psychiatric or
(iii) If the reduction is not a multiple comment, but do not want it to be psychological report be filed with the
of 10 cents, we will round it to the next posted online, you must include the court. Pursuant to § 4248(c), a hearing
higher multiple of 10 cents. phrase ‘‘PERSONAL IDENTIFYING shall be conducted in which the person
* * * * * INFORMATION’’ in the first paragraph shall be represented by counsel, and be
[FR Doc. E7–15057 Filed 8–2–07; 8:45 am] of your comment. You must also locate afforded an opportunity to testify,
BILLING CODE 4191–02–P
all the personal identifying information present evidence, subpoena witnesses
you do not want posted online in the on his or her behalf, and confront and
first paragraph of your comment and cross-examine witnesses who appear at
identify what information you want the hearing. If the court finds by clear
DEPARTMENT OF JUSTICE
redacted. and convincing evidence that the person
Bureau of Prisons If you want to submit confidential is a sexually dangerous person, the
business information as part of your court shall commit him/her to the
28 CFR Part 549 comment but do not want it to be posted custody of the Attorney General as
online, you must include the phrase detailed in § 4248(d).
[BOP Docket No. 1145] ‘‘CONFIDENTIAL BUSINESS The Walsh Act also amended 18
RIN 1120–AB45 INFORMATION’’ in the first paragraph U.S.C. 4247 to include a definition of
of your comment. You must also ‘‘sexually dangerous person.’’ The
Civil Commitment of a Sexually prominently identify confidential amended statute defines ‘‘sexually
Dangerous Person business information to be redacted dangerous person’’ as ‘‘a person who
within the comment. If a comment has has engaged or attempted to engage in
AGENCY: Bureau of Prisons, Justice. so much confidential business sexually violent conduct or child
ACTION: Proposed rule. information that it cannot be effectively molestation and who is sexually
redacted, all or part of that comment dangerous to others.’’ The amended
SUMMARY: In this proposed rule, the
may not be posted on http:// statute defines ‘‘sexually dangerous to
Bureau of Prisons (Bureau) provides www.regulations.gov. others’’ to mean that a person ‘‘suffers
definitions and standards relating to the Personal identifying information from a serious mental illness,
certification of persons as sexually identified and located as set forth above abnormality, or disorder as a result of
dangerous for the purpose of civil will be placed in the agency’s public which he would have serious difficulty
commitment, as authorized by The docket file, but not posted online. in refraining from sexually violent
Adam Walsh Child Protection and Confidential business information conduct or child molestation if
Safety Act of 2006 (Pub. L. 109–248) identified and located as set forth above released.’’
(Walsh Act), enacted July 27, 2006, will not be placed in the public docket The statute does not define the terms
which amended title 18 of the United file. If you wish to inspect the agency’s ‘‘sexually violent conduct’’ or ‘‘child
States Code, Chapter 313. public docket file in person by molestation’’ and the Bureau proposes
DATES: Comments are due by October 2, appointment, please see the FOR these regulations to interpret them.
2007. FURTHER INFORMATION paragraph. Although the Bureau has, in part,
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ADDRESSES: Submit comments to the This proposed rule provides looked to federal criminal statutes for
Rules Unit, Office of General Counsel, definitions and standards for review by language to assist in defining these
Bureau of Prisons, 320 First Street, NW., the Bureau of persons in its custody for terms, we do not rely upon the
Washington, DC 20534. You may view certification to federal district courts as provisions themselves, case law
an electronic version of this rule at ‘‘sexually dangerous persons,’’ as interpretations of them, or other related
http://www.regulations.gov. You may authorized by title 18 U.S.C. Chapter statutory history. Rather, the Bureau’s

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