SSR 64-32: SECTION 223(a). -- DISABILITY -- POSSIBLE CESSATION -- SELF-EMPLOYMENT

20 CFR 404.1534 and 404.1539

SSR 64-32

P, a former U.S. Air Force training flight officer, has been receiving

disability insurance benefits. He was found to be under a disability

beginning July 1960, when at age 51, he was medically discharged from

military service because of advanced, chronic, and progressive multiple

sclerosis.

During the 5 years before his discharge, P's physical condition had

continuously grown worse so that by July 1960 he had ataxia (failure of

muscular coordination) and partial paralysis of all four limbs which was

more severe in his lower limbs. He became considerably fatigued after

walking about a block. He suffered partial urinary and bowel incontinence;

diminution of hearing bilaterally; diplopia (seeing a single object as

two); some difficulty in thinking and formulating sentences as well as

occasional slurring of words; and scattered sensory defects.

Subsequently, P took a 6-week training course in investment counseling

through the auspices of a State vocational rehabilitation agency. In March

1961, he became self-employed as a commission representative, selling

mutual fund securities on commission for an investment brokerage firm and

advising potential investors about securities. He works not more than 20

hours a week, at greatly reduced efficiency, and is able to adjust his

working arrangements to his functional limitations. He is never able to

work longer than about 4 hours a day, because he tires easily, his

impairments seriously impede and restrict his work, and he must undergo

daily physical therapy as part of his medical management. His net income,

after deducting telephone, travel, and miscellaneous business expenses of

about $300 a year, has not exceeded $800 annually. Work activity consists

of making contacts by telephone and seeing two or three securities

investment prospects or clients per day. Whenever possible, he has them

come to his home

st undergo

daily physical therapy as part of his medical management. His net income,

after deducting telephone, travel, and miscellaneous business expenses of

about $300 a year, has not exceeded $800 annually. Work activity consists

of making contacts by telephone and seeing two or three securities

investment prospects or clients per day. Whenever possible, he has them

come to his home. Occasionally, his wife drives him short distances to

meet business contacts. She also does certain required clerical work,

e.g., writing or typing, which he cannot do himself. She receives no pay

for her services. P's condition has been slowly deteriorating, and his

doctor has advised him not to overexert himself. He is expending maximum

effort to continue his work activity and maintain a feeling of

usefulness.

The issue in this case is whether P's disability has ceased, thereby

requiring termination of his disability insurance benefits under section

223(a) of the Act.

Social Security Administration Regulations No. 4, § 404.1539 provides, as

pertinent in this case, that a person's disability shall be found to have

ceased if "the impairment, as established by the medical or other

evidence, is no longer of such severity as to prevent him from engaging in

any substantial gainful activity;" or if he "has regained his ability to

engage in substantial gainful activity as demonstrated by work

activity."

P's multiple sclerosis continues to be severe and is growing worse. There

is, therefore, no medical basis for finding that his impairment is no

longer of such severity as to prevent him from engaging in substantial

gainful activity.

The remaining question is whether P's work activity nevertheless

demonstrates an actual ability to engage in substantial gainful activity.

In deciding this question, the amount of his earnings as well as all other

factors pertaining to the extent and performance of his work activity must

be considered.

ger of such severity as to prevent him from engaging in substantial

gainful activity.

The remaining question is whether P's work activity nevertheless

demonstrates an actual ability to engage in substantial gainful activity.

In deciding this question, the amount of his earnings as well as all other

factors pertaining to the extent and performance of his work activity must

be considered.

Social Security Administration Regulations No. 4, § 404.1534 states, in

pertinent part, as follows:

* * * * *

P's self-employment activity does not involve managerial or supervisory

services, but consists of giving advice and selling securities to

potential purchasers. His earnings inure from commissions on the sale of

the securities. Despite work effort to the limit of his ability, his net

earnings have not exceeded $800 per year, and would be much less if he

were required to pay for the necessary assistance his wife gives him in

the performance of his services.

P's impairments severely limit the amount of services he can perform and

seriously hinder his general effectiveness in the rendition of such

services. His limited endurance permits him to work not more than half

time. In addition, his inability to walk any appreciable distance and his

partial loss of elimination control primarily confine his business

endeavors to the phone and his home. His loss of hearing, poor motor

control, diminution of mental faculties, and impaired verbal communication

further restrict his ability to deal effectively with potential investors.

His impairments are of such severity as to render him incapable of doing

more work or earning more money.

artial loss of elimination control primarily confine his business

endeavors to the phone and his home. His loss of hearing, poor motor

control, diminution of mental faculties, and impaired verbal communication

further restrict his ability to deal effectively with potential investors.

His impairments are of such severity as to render him incapable of doing

more work or earning more money.

Accordingly, it is held that P's impairments continue to be

severe; his work activity, considering the amount of his earnings and

other pertinent factors, does not demonstrate that he has regained the

ability to engage in substantial gainful activity; his disability has not

ceased; and his entitlement to disability insurance benefits is not

terminated.