Privacy Act of 1974; Report of New Systems of Records

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Social Security Administration

Privacy Act of 1974; Report of New Systems of Records

AGENCY: Social Security Administration (SSA), HHS.

ACTION: Notification of new systems of records and new routine uses.

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SUMMARY: In accordance with the Privacy Act of 1974 (5 U.S.C.

552a(e)(4)), we are notifying the public of our intent to establish two

new systems of records. The proposed systems are entitled ``SSA-

Initiated Personal Earnings and Benefit Estimate Statement (SIPEBES)

History File, HHS/SSA/OSR, 09-60-0224'' and ``SSA-Initiated Personal

Earnings and Benefit Estimate Statement Address System for Certain

Territories, HHS/SSA/OSR, 09-60-0225.'' For convenience we will refer

to these systems as the ``History File'' and the ``Territory Address

System,'' respectively.

We are also proposing to establish routine uses of the information

to be maintained in the two systems. The proposed routine uses are

discussed below.

We invite public comment on this publication.

DATES: We filed a report of the proposed systems of records with the

Senate Committee on Governmental Affairs, the House Committee on

Government Operations, and the Office of Management and Budget, Office

of Information and Regulatory Affairs, on October 3, 1994. The proposed

systems, including the proposed routine uses, will become effective as

proposed, without further notice, on November 12, 1994, unless we

receive comments on or before that date which would warrant preventing

the systems from taking effect.

ADDRESSES: Interested individuals may comment on this proposal by

writing to the SSA Privacy Officer, 3-D-1 Operations Building, 6401

Security Boulevard, Baltimore, Maryland 21235. All comments received

will be available for public inspection at the above address.

FOR FURTHER INFORMATION CONTACT:

Mr. Peter J. Benson, Office of Policy, 6401 Security Boulevard,

Baltimore, Maryland 21235; telephone 410-965-1736.

SUPPLEMENTARY INFORMATION:

I. Description of the Proposed Systems of Records

Section 1143(c) of the Social Security Act requires SSA to phase in

a program, beginning not later than October 1, 1999, for mailing a

PEBES annually to everyone:

(a) Who has reached at least age 25,

(b) Who has had some earnings reported to his/her Social Security

number (SSN),

(c) Who is not receiving benefits under Title II of the Social

Security Act, and

(d) For whom SSA can determine a mailing address.

The phasing in requires SSA to furnish PEBES by not later than

September 30, 1995, to everyone who has reached age 60 by October 1,

1994, who is currently not receiving title II benefits, for whom some

earnings have been reported, and for whom a current mailing address can

be established; and from October 1, 1994, to September 30, 1999, to

everyone who attains age 60 during that period and who meets the other

criteria for receiving the PEBES. The PEBES will be sent in the fiscal

year (October 1 through September 30) in which the individual attains

age 60.

The two systems together will enable SSA to mail Personal Earnings

and Benefit Estimate Statements (PEBES) to certain individuals,

pursuant to section 1143 of the Social Security Act (42 U.S.C. 1320b-

13).

SSA has previously maintained current address information only for

those persons currently entitled to monthly Social Security benefits.

Therefore, SSA must obtain address information for everyone to whom SSA

will be required to mail a PEBES.

As discussed below, SSA will use different sources for obtaining

the address information that will be maintained in the systems.

A. History File. For persons living within a State of the United

States or the District of Columbia, SSA will use address information

obtained from the Internal Revenue Service (IRS), reflecting addresses

taken from Federal income tax returns. SSA will maintain this address

information obtained from IRS in the History File.

After the PEBES have been released in a given mailing cycle, SSA

will inevitably receive inquiries from some individuals about their

PEBES, or alleging that they did not receive a PEBES. The History File

will enable SSA to verify whether a PEBES was released to that person,

when, to what address, and what address source was used. The History

File will also permit statistical studies involving the PEBES system.

B. Territory Address System. For persons living in Puerto Rico or

in a territory of the United States who are not required to file

Federal income tax returns, SSA must obtain their addresses from

sources other than the IRS. SSA will obtain this information from the

Commonwealth and Territorial governments. SSA must maintain these data

until needed for a PEBES mailing. We therefore are establishing the

Territory Address System of records for that purpose. After an address

is identified from the Territory Address System and a PEBES is mailed,

the address information will be maintained in the History File.

II. Collection and Maintenance of Data in the Systems

Information for the History File (each individual's address

information, other personal information, and information about the

PEBES mailing) will be obtained from IRS and from sources within SSA,

respectively.

Information for the Territory Address System will be obtained

primarily from the Commonwealth and Territorial governments, possibly

supplemented from other sources.

III. Proposed Routine Use Disclosures of Data in the Systems

We are proposing to establish the following routine use disclosures

of the information that will be maintained in the two systems. The

routine use disclosures are identical for both systems except as noted.

Information may be disclosed as follows:

1. Information may be disclosed to contractors and other Federal

agencies, as necessary, to assist SSA in the efficient administration

of its programs. We contemplate disclosing information under this

routine use only in situations in which SSA may enter a contractual or

similar agreement with a third party to assist in accomplishing an

agency function relating to this system of records.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

Contractors will safeguard information disclosed to them consistent

with the requirements of the Privacy Act.

We contemplate disclosing information under this routine use only

when SSA enters into a contractual or similar agreement with a third

party to help SSA maintain the proposed systems or to carry out the

PEBES mailing program.

In administering our program, we often find that it is more

efficient to use an outside contractor to carry out some of our

functions. This proposed routine use would allow us to disclose

information from the system under these circumstances.

2. Information may be disclosed to a congressional office in

response to an inquiry from the congressional office made at the

request of the subject of the record.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 6103) will not be

disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

We contemplate disclosing information under this routine use only

in situations in which the individual asks his/her Member of Congress

to intercede in an SSA matter on his/her behalf. Information will be

disclosed from the proposed systems only when the Member of Congress

inquires and presents evidence that he/she is acting on behalf of the

individual whose record is requested.

3. Information may be disclosed to the Department of Justice (DOJ),

a court, or other tribunal, or another party before such tribunal,

when:

(1) SSA, or any component thereof; or

(2) any SSA employee in his/her official capacity; or

(3) any SSA employee in his/her individual capacity when DOJ (or

SSA, when it is authorized to do so) has agreed to represent the

employee; or

(4) the United States or any agency thereof when SSA determines

that the litigation is likely to affect the operations of SSA or any of

its components, Is a party to litigation or has an interest in such

litigation, and SSA determines that the use of such records by DOJ, the

court or other tribunal, or other party before the tribunal is relevant

and necessary to the litigation, provided, however, that in each case

SSA determines that such disclosure is compatible with the purposes for

which the records were collected.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

This proposed routine use would permit us to disclose information

from the proposed systems when an SSA component and/or employee is

involved in litigation involving information in the proposed system.

The routine use would also permit disclosure when SSA brings suit or

when another party bring suit and SSA has an interest in the

litigation.

4. Information may be disclosed to the Office of the President for

responding to an individual pursuant to an inquiry received from that

individual or from a third party on his or her behalf.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

We contemplate disclosing information under this routine use in

situations in which that individual or someone else on the individual's

behalf asks the President to intercede in an SSA matter pertaining to

the individual. Information may be disclosed from the proposed systems

when the Office of the President inquires and presents evidence that it

is acting on behalf of the individual whose record is requested.

5. Nontax return information, the disclosure of which is not

expressly restricted by Federal law, may be disclosed to the General

Services Administration and the National Archives and Records

Administration under 44 U.S.C. 2904 and 2906, as amended by the

National Archives and Records Administration Act of 1984, for the use

of those agencies in conducting records management studies.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

The Administrator of the General Services Administration (GSA) and

the Archivist of the National Archives and Records Administration

(NARA) are charged by 44 U.S.C. 2904 with promulgating safeguards,

procedures, and guidelines regarding records management and conducting

records management studies. Section 2906 of that law, also amended by

the NARA Act of 1984, provides that GSA and NARA are to have access to

Federal agencies' records and that agencies are to cooperate with GSA

and NARA. In carrying out these responsibilities, it may be necessary

for GSA and NARA to have access to these two proposed systems of

records. In such instances, the routine use will facilitate disclosure.

6. Information may be disclosed to the Internal Revenue Service

(IRS) for auditing SSA's compliance with the safeguard provisions of

the Internal Revenue Code of 1986, as amended.

This routine use applied only to the History File which maintains

some information obtained from the IRS. As necessary, the routine use

will allow disclosure to IRS to ensure that SSA is in compliance with

safeguard standards.

IV. Compatibility of the Proposed Routine Uses

Both the Privacy Act of 1974 (5 U.S.C. 552a(a)(7) and (b)(3)) and

our disclosure regulations (20 CFR part 401) permit us to disclose

information under a routine use for a purpose which is compatible with

the purposes for which we collected the information. Paragraph

401.310(c) of the regulations permits us to disclose information under

a routine use to administer our programs. Section 401.205 of the

regulations requires us to disclose information when a law specifically

requires the disclosure.

The proposed routine uses numbered 1, 2, 3, 4, and 6, described

above, will facilitate SSA's administration of its programs. Routine

use number 5 will allow GSA or NARA to inspect our records, as required

by 44 U.S.C. 2904 and 2906, when those agencies conduct records

management studies. Thus, all the routine uses are appropriate and meet

the criteria in the Privacy Act and SSA's regulations.

V. Safeguards

We will employ a number of security measures to minimize the risk

of unauthorized access to or disclosure of personal data in the two

proposed systems. These measures include the use of passwords and

access codes to enter the computer system which will maintain the data,

and storage of the computerized records in secured areas which are

accessible only to employees who require the information in performing

their official duties. SSA employees who have access to the data will

be informed of the criminal penalties of the Privacy Act for

unauthorized access to or disclosure of information maintained in the

system.

In addition, any contract which SSA may sign with a third party in

order to carry out the required mailings will stipulate that (a) the

contractor must establish safeguards to protect the personal

information temporarily in its custody, in accordance with Privacy Act

requirements; (b) the contractor may use the information only as

necessary in fulfilling the contract; and (c) the contractor is subject

to criminal penalties for violations of the Privacy Act.

VI. Effect of the Proposed Systems of Records on Individual Rights

As discussed above, the proposed systems of records will enable SSA

to mail PEBES. Recipients will benefit from the PEBES because these

statements will help them plan their finances and check the accuracy of

SSA's records. The routine uses will benefit individuals by helping SSA

run its programs smoothly.

SSA will adhere to all provisions of the Privacy Act, Social

Security Act, and other applicable laws in our maintenance and use of

the information. Thus, we do not anticipate that the system will have

any adverse effect on individuals' rights.

Dated: October 3, 1994.

Shirley S. Chater,

Commissioner of Social Security.

09-60-0224

SSA-Initiated Personal Earnings and Benefit Estimate Statement

(SIPEBES) History File, HHS/SSA/OSR.

None.

Social Security Administration, Office of Systems, 6401 Security

Boulevard, Baltimore, MD 21235.

Any person:

Who lives in a state or territory of the United States or

the District of Columbia;

Who has reached age 25;

Who has had earnings posted to his/her Social Security

number (SSN);

Who is not receiving benefits under title II of the Social

Security Act; and

For whom the Social Security Administration (SSA) can

determine the current mailing address.

This system contains the following information about each

individual:

Name;

SSN;

Address to which the PEBES was mailed;

Date of birth;

Sex;

Disposition code (to indicate earnings discrepancy or

refusal);

Date of SIPEBES issuance;

Whether the PEBES was issued at the individual's request

or SSA's initiative;

Primary language (English or Spanish);

Address source (IRS, the individual, or other);

IRARN-CD (a code reserved for future use).

PROC-CD (a code reserved for future use).

Sections 205(a), 205(c)(2), and 1143 of the Social Security Act (42

U.S.C. 405(a), 405(c)(2), and 1320b-13); the Federal Records Act of

1950 (64 Stat. 583), as amended.

This system is used for the following purposes:

To establish and retrieve specific records for PEBES

processing;

To identify whether or when a person has previously

received an SIPEBES;

To help SSA respond to PEBES inquiries; and

To conduct statistical studies.

Disclosure may be made for routine uses as indicated below:

1. Information may be disclosed to contractors and other Federal

agencies, as necessary, to assist SSA in the efficient administration

of its programs. We contemplate disclosing information under this

routine use only in situations in which SSA may enter a contractual or

similar agreement with a third party to assist in accomplishing an

agency function relating to this system of records.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

2. Information may be disclosed to a congressional office in

response to an inquiry from the congressional office made at the

request of the subject of the record.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

3. To the Department of Justice (DOJ), a court, or other tribunal,

or another party before such tribunal, when:

(1) SSA, or any component thereof; or

(2) Any SSA employee in his/her official capacity; or

(3) Any SSA employee in his/her individual capacity when DOJ (or

SSA, when it is authorized to do so) has agreed to represent the

employee; or

(4) The United States or any agency thereof when SSA determines

that the litigation is likely to affect the operations of SSA or any of

its components,

is a party to litigation or has an interest in such litigation, and SSA

determines that the use of such records by DOJ, the court or other

tribunal, or the other party before the tribunal is relevant and

necessary to the litigation, provided, however, that in each case SSA

determines that such disclosure is compatible with the purposes for

which the records were collected.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

4. Information may be disclosed to the Office of the President for

responding to an individual pursuant to an inquiry received from that

individual or from a third party on his or her behalf.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

5. Nontax return information, the disclosure of which is not

expressly restricted by Federal law, may be disclosed to the General

Services Administration and the National Archives and Records

Administration under 44 U.S.C. 2904 and 2906, as amended by the

National Archives and Records Administration Act of 1984, for the use

of those agencies in conducting records management studies.

Wage and other information which is subject to the disclosure

provisions of the Internal Revenue Code (IRC, 26 U.S.C. 6103) will not

be disclosed under this routine use unless disclosure is expressly

permitted by the IRC.

6. Information may be disclosed to the Internal Revenue Service

(IRS) for auditing SSA's compliance with the safeguard provisions of

the Internal Revenue Code of 1986, as amended.

Records may be stored in magnetic media (e.g., magnetic tape and

disc), microfilm, or paper.

Data will be retrieved from the system by SSN and name.

Safeguards for automated records have been established in

accordance with the Department of Health and Human Services (HHS)

Information Resources Management Manual, Part 6, Automated Information

Systems Security Program Handbook. This includes maintaining the

magnetic tapes and discs within an enclosure attended by security

guards. Anyone entering or leaving this enclosure must have a special

badge issued only to authorized personnel.

For computerized records electronically transmitted between Central

Office and Field Office locations (including organizations

administering SSA programs under contractual agreements), safeguards

include a lock/unlock password system, exclusive use of leased

telephone lines, a terminal-oriented transaction matrix, and an audit

trail. All microfilm and paper files are accessible only by authorized

personnel who have a need for the information in performing their

official duties.

SSA's terminals are equipped with physical key locks. The terminals

are also fitted with adapters to permit the future installation of data

encryption devices and devices to permit the identification of terminal

users.

Contractors will safeguard information disclosed to them consistent

with the requirements of the Privacy Act.

All tapes, discs, and microfilm files are updated periodically.

Out-of-date magnetic tapes and discs are erased. Out-of-date microfilm

is shredded.

SSA retains correspondence one year when it concerns documents

returned to an individual, denials of confidential information, release

of confidential information to an authorized third party, and

undeliverable material; for four years when it concerns information and

evidence pertaining to coverage, wage, and self-employment

determinations or when it affects future claims development, especially

coverage, wage, and self-employment determinations. Correspondence is

destroyed, when appropriate, by shredding. Magnetic media records are

maintained indefinitely.

Director, Office of Pre-Claims Requirements, Office of Systems

Requirements, Social Security Administration, 6401 Security Boulevard,

Baltimore, MD 21235.

An individual can determine if this system contains a record

pertaining to him/her by providing his/her name, signature, and SSN,

or, if the SSN is not known, name, signature, date and place of birth,

mother's birth name, and father's name to the address shown above under

``System manager'' and by referring to this system. (Furnishing the SSN

is voluntary, but it will enable an easier and faster search for an

individuals record.)

An individual requesting notification of records in person need not

furnish any special documents of identify. Documents which one would

normally carry on one's person are sufficient (e.g., credit cards,

driver's license, or voter registration card). An individual requesting

notification via mail or telephone must furnish a minimum of his/her

name, date of birth, and address in order to establish identify, plus

any additional information which may be requested. These procedures

conform with HHS Regulations, 45 CFR part 5b.

Same as notification procedures. Also, requesters should reasonably

identify the record contents they are seeking. These procedures conform

with HHS Regulations, 45 CFR part 5b.

Same as notification procedures. Also, requesters should reasonably

identify the record, specify the information they are contesting and

state the corrective action sought and the reasons for the correction

with supporting justification. These procedures conform with HHS

Regulations, 45 CFR part 5b.

Information in this system is obtained from the Numident File of

the SSA system of records entitled ``Master File of Social Security

Number Holders, HHS/SSA/OSR (09-60-0058)''; and from the IRS.

None.

09-60-0225

SSA-Initiated Personal Earnings and Benefit Estimate Statement

Address System for Certain Territories. HHS/SSA/OSR.

None.

Social Security Administration, Office of Systems, 6401 Security

Boulevard, Baltimore, MD 21235.

Records may also be located at contractor sites. Contact the system

manager at the address below for contractor addresses.

Any person:

Who lives in Guam, Puerto Rico, or the United States

Virgin Islands,

Who has reached age 25,

Who has had earnings posted to his/her SSN,

Who is not receiving benefits under Title II of the Social

Security Act, and

From whom SSA can determine the current mailing address.

This system contains the following information about each

individual:

Name;

Sex;

SSN;

Address;

Whether a PEBES was issued at the individual's request or

SSA's initiative;

A country name code.

Sections 205(a), 205(c)(2), and 1143 of the Social Security Act (42

U.S.C. 405(a), 405(c)(2), and 1320b-13); the Federal Records Act of

1950 (64 Stat. 583).

The system is used for the following purposes:

To establish and retrieve specific records for PEBES

processing for individuals living in the specified areas;

To help SSA respond to PEBES inquiries; and

To conduct statistical studies.

Disclosure may be made from routine uses as indicated below:

1. Information may be disclosed to contractors and other Federal

agencies, as necessary, to assist SSA in the efficient administration

of its programs. We contemplate disclosing information under this

routine use only in situations in which SSA may enter a contractual or

similar agreement with a third party to assist in accomplishing an

agency function relating to this system of records.

2. Information may be disclosed to a congressional office in

response to an inquiry from the congressional office made at the

request of the subject of the record.

3. Information may be disclosed to the Department of Justice (DOJ),

a court, or other tribunal, or another party before such tribunal,

when:

(1) SSA, or any component thereof; or

(2) Any SSA employee in his/her official capacity; or

(3) Any SSA employee in his/her individual capacity when DOJ (or

SSA, when it is authorized to do so) has agreed to represent the

employee; or

(4) The United States or any agency thereof when SSA determines

that the litigation is likely to affect the operation of SSA or any of

its components.

is a party to litigation or has an interest in such litigation, and SSA

determines that the use of such records by DOJ, the court or other

tribunal, or the other party before the tribunal is relevant and

necessary to the litigation, provided, however, that in each case SSA

determines that such disclosure is compatible with the purposes for

which the records were collected.

4. Information may be disclosed to the Office of the President for

responding to an individual pursuant to an inquiry received from that

individual or from a third party on his or her behalf.

5. Nontax return information, the disclosure of which is not

expressly restricted by Federal law, may be disclosed to the General

Services Administration and the National Archives and Records

Administration under 44 U.S.C. 2904 and 2906, as amended by the

National Archives and Records Administration Act of 1984, for the use

of those agencies in conducting records management studies.

Records will be stored in magnetic media (e.g., magnetic tape and

disc).

Data will be retrieved from the system by SSN, name, and date of

issuance of the PEBES.

Safeguards for automated records have been established in

accordance with the Department of Health and Human Services (HHS)

Information Resources Management Manual, Part 6, Automated Information

Systems Security Program Handbook. This includes maintaining the

magnetic tapes and discs within an enclosure attended by security

guards, Anyone entering or leaving this enclosure must have a special

badge issued only to authorized personnel.

For computerized records electronically transmitted between Central

Office and Field Office locations (including organizations

administering SSA programs under contractual agreements), safeguards

include a lock/unlock password system, exclusive use of leased

telephone lines, a terminal-oriented transaction matrix, and an audit

trail. All microfilm and paper files are accessible only by authorized

personnel who have a need for the information in performing their

official duties.

SSA's terminals are equipped with physical key locks. The terminals

are also fitted with adapters to permit the future installation of data

encryption devices and devices to permit the identification of terminal

users.

All tapes, discs, and microfilm files are updated periodically.

Out-of-date magnetic tapes and discs are erased. Out-of-date microfilm

is shredded.

SSA retains correspondence one year when it concerns documents

returned to an individual, denials of confidential information, release

of confidential information to an authorized third party, and

undeliverable material; for four years when it concerns information and

evidence pertaining to coverage, wage, and self-employment

determinations or when it affects future claims development, especially

coverage, wage, and self-employment determinations. Correspondence is

destroyed, when appropriate, by shredding. Magnetic media records are

maintained indefinitely.

Director, Office of Pre-Claims Requirements, Office of Systems

Requirements, Social Security Administration, 6401 Security Boulevard,

Baltimore, MD 21235.

An individual can determine if this system contains a record

pertaining to him/her by providing his/her name, signature, and SSN,

or, if the SSN is not known, name, signature, date and place of birth,

mother's birth name, and father's name to the address shown above under

``System manager'' and by referring to this system. (Furnishing the SSN

is voluntary, but it will enable an easier and faster search for an

individuals' record.)

An individual requesting notification of records in person need not

furnish any special documents of identity. Documents which one would

normally carry on one's person are sufficient (e.g., credit cards,

driver's license, or voter registration card). An individual requesting

notification via mail or telephone must furnish a minimum of his/her

name, date of birth, and address in order to establish identity, plus

any additional information which may be requested. These procedures

conform with HHS Regulations, 45 CFR Part 5b.

Same as notification procedures. Also, requesters should reasonably

identify the record contents they are seeking. These procedures conform

with HHS Regulations, 45 CFR Part 5b.

Same as notification procedures. Also, requesters should reasonably

identify the record, specify the information they are contesting and

state the corrective action sought and the reasons for the correction

with supporting justification. These procedures conform with HHS

Regulations, 45 CFR part 5b.

Information in this system is obtained from the Commonwealth of

Puerto Rico and the Territories of Guam and the United States Virgin

Islands.

None.

[FR Doc. 94-26627 Filed 10-26-94; 8:45 am]

BILLING CODE 4190-29-M