Application by the Social Security Administration (SSA) of Federal Circuit Court and District Court Decisions

SOCIAL SECURITY ADMINISTRATION

[Social Security Ruling (SSR) 96-1p]

Application by the Social Security Administration (SSA) of

Federal Circuit Court and District Court Decisions

AGENCY: Social Security Administration.

ACTION: Notice of Social Security Ruling.

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SUMMARY: In accordance with 20 CFR 422.406(b)(1), the Commissioner of

Social Security gives notice of Social Security Ruling 96-1p. This

Ruling clarifies SSA's longstanding policies that (1) unless and until

a Social Security Acquiescence Ruling is issued determining that a

final circuit court holding conflicts with the Agency's interpretation

of the Social Security Act or regulations and explaining how SSA will

apply such a holding, SSA decisionmakers will continue to be bound by

SSA's nationwide policy, rather than the court's holding, in

adjudicating other claims within that circuit court's jurisdiction, and

(2) despite a district court decision which may conflict with SSA's

interpretation of the Social Security Act or regulations, SSA

adjudicators will continue to apply SSA's nationwide policy when

adjudicating other claims within that district court's jurisdiction

unless the court directs otherwise.

This Ruling does not in any way modify SSA's acquiescence policy to

which the Agency continues to remain firmly committed, but instead

serves to emphasize consistent adjudication in the programs SSA

administers.

EFFECTIVE DATE: July 2, 1996.

FOR FURTHER INFORMATION CONTACT: Joanne K. Castello, Division of

Regulations and Rulings, Social Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410) 965-1711.

SUPPLEMENTARY INFORMATION: Although we are not required to do so

pursuant to 5 U.S.C. 552 (a)(1) and (a)(2), we are publishing this

Social Security Ruling in accordance with 20 CFR 422.406(b)(1).

Social Security Rulings make available to the public precedential

decisions relating to the Federal old-age, survivors, disability,

supplemental security income, and black lung benefits programs. Social

Security Rulings may be based on case decisions made at all

administrative levels of adjudication, Federal court decisions,

Commissioner's decisions, opinions of the Office of the General

Counsel, and other policy interpretations of the law and regulations.

Although Social Security Rulings do not have the force and effect

of the law or regulations, they are binding on all components of the

Social Security Administration, in accordance with 20 CFR

422.406(b)(1), and are to be relied upon as precedents in adjudicating

cases.

If this Social Security Ruling is later superseded, modified, or

rescinded, we will publish a notice in the Federal Register to that

effect.

(Catalog of Federal Domestic Assistance, Programs 96.001 Social

Security--Disability Insurance; 96.002 Social Security--Retirement

Insurance; 96.004 Social Security--Survivors Insurance; 96.005

Special Benefits for Disabled Coal Miners; 96.006 Supplemental

Security Income)

Dated: June 7, 1996.

Shirley S. Chater,

Commissioner of Social Security.

Policy Interpretation Ruling

Application by the Social Security Administration (SSA) of Federal

Circuit Court and District Court Decisions

Purpose: To clarify longstanding policy that, unless and until a

Social Security Acquiescence Ruling (AR) is issued determining that a

final circuit court holding conflicts with the Agency's interpretation

of the Social Security Act or regulations and explaining how SSA will

apply such a holding, SSA decisionmakers continue to be bound by SSA's

nationwide policy, rather than the court's holding, in adjudicating

other claims within that circuit court's jurisdiction. This Ruling does

not in any way modify SSA's acquiescence policy to which the Agency

continues to remain firmly committed, but instead serves to emphasize

consistent adjudication in the programs SSA administers. This Ruling is

also issued to clarify longstanding Agency policy that, despite a

district court decision which may conflict with SSA's interpretation of

the Social Security Act or regulations, SSA adjudicators will continue

to apply SSA's nationwide policy when adjudicating other claims within

that district court's jurisdiction unless the court directs otherwise.

Citations (Authority): Sections 205(a), 702(a)(5) and 1631(d) of

the Social Security Act; Sections 413(b), 426(a) and 508 of the Black

Lung Benefits Act; Regulations No. 4, section 404.985; Regulations No.

10, section 410.670c; Regulations No. 16, section 416.1485; Regulations

No. 22, section 422.406.

Background: Final regulations on the application of circuit court

law in the Social Security, Supplemental Security Income, and Black

Lung programs were published in the Federal Register on January 11,

1990 (55 FR 1012). SSA first adopted the acquiescence policy set forth

in these rules in 1985, with the details evolving over the next 5

years. These rules explain how SSA acquiesces in circuit court law

which conflicts with Agency policy; it does so by issuing an AR for a

final circuit court decision which SSA determines is in conflict with

the Agency's interpretation of the Social Security Act or regulations.

20 CFR 404.985(b), 410.670c(b) and 416.1485(b). The AR, which is issued

through publication in the Federal Register, describes the

administrative case and the court decision, identifies the issue(s),

explains how the court decision differs from SSA policy, and

[[Page 34471]]

explains how SSA will apply the court holding, instead of its

nationwide policy, when deciding claims within the applicable circuit.

ARs apply at all steps in the administrative process within the

applicable circuit unless the court decision, by its nature, applies

only at certain steps in this process. In the latter case, the AR may

be so limited.

As of the effective date of this Ruling, SSA had issued a total of

62 ARs, averaging about 3-4 ARs per year in recent years; 42 of those

ARs are still in effect. The majority of the ARs issued by SSA to date

have dealt with nondisability issues, although a significant portion

have dealt directly with the disability determination process.

Decisions for which ARs are issued often involve complex and difficult

issues. The court's holding may be unclear in its scope and susceptible

to differing interpretations. Despite these difficulties, no AR has

been found to be inadequate by the circuit court which issued the

underlying decision.

Policy Interpretation: Unless and until an AR for a circuit court

holding has been issued, SSA adjudicates other claims within that

circuit by applying its nationwide policy. The preamble to the final

acquiescence regulations published on January 11, 1990, explained the

basis for this approach in responding to a public comment suggesting

that administrative law judges (ALJs) and the Appeals Council should be

allowed to apply circuit court holdings without the benefit of an

Acquiescence Ruling:

[W]e have not adopted this comment. First, under this final

acquiescence policy, Acquiescence Rulings apply to all levels of

adjudication, not only to the ALJ and Appeals Council levels, unless

a holding by its nature applies only to certain levels of

adjudication. Thus, the approach suggested in this comment would

create different standards of adjudication at the different levels

of administrative review. Second, interpreting and applying a

circuit court holding is not always a simple matter, as we noted

previously. 1 Finally, by statute, establishing policy is the

Secretary's 2 responsibility; adjudicators are responsible for

applying that policy to the facts in any given case. Therefore, we

believe that to ensure the uniform and consistent adjudication

necessary in the administration of a national program, the agency

must analyze court decisions and provide adjudicators as specific a

statement as possible explaining the agency's interpretation of a

court of appeals holding, as well as providing direction on how to

apply the holding in the course of adjudication.

\1\ The preamble previously noted that, ``Whether or not the

holding of a particular circuit court decision `conflicts' with our

policy is not always clear . . .'' 55 FR 1012 (1990).

\2\ As a result of Pub. L. 103-296, the Social Security

Independence and Program Improvements Act of 1994, which made SSA an

independent agency separate from the Department of Health and Human

Services effective March 31, 1995, the responsibility for

establishing policy now resides with the Commissioner of Social

Security, rather than the Secretary of Health and Human Services.

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55 FR 1013 (1990).

As explained in SSA's regulations at 20 CFR 404.985(b),

410.670c(b), and 416.1485(b), if SSA makes an administrative

determination or decision on a claim between the date of a circuit

court decision and the date of issuance of an AR for that decision, the

claimant, upon request, is permitted to have the claim readjudicated by

demonstrating that application of the AR could change the result. Thus,

as explained in the preamble to the acquiescence regulations, a

readjudication procedure is provided which allows a claimant, whose

application was adjudicated during the interim period between a circuit

court decision and the issuance of an AR for that decision, to seek

immediate application of the AR once it is issued, without the

necessity of appeal. 55 FR 1013 (1990).

Finally, in accordance with its regulations, SSA acquiesces only in

decisions of the Federal circuit courts, and not in decisions of

Federal district courts within a circuit. Thus, despite a district

court decision which may conflict with SSA's interpretation of the

Social Security Act or regulations, SSA adjudicators will continue to

apply SSA's nationwide policy when adjudicating other claims within

that district court's jurisdiction unless the court directs otherwise

such as may occur in a class action.

Effective Date: This Ruling, which reflects longstanding procedures

which SSA continues to believe represent the most effective and fair

way to implement its acquiescence policy, is effective on July 2, 1996.

This Ruling does not apply to the claims of New York disability

claimants who are covered by the court-approved settlement in

Stieberger v. Sullivan.

[FR Doc. 96-16684 Filed 7-1-96; 8:45 am]

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