# SSR 80-34c: SSR 80-34c: SECTION 1631(b) (42 U.S.C. 1383(b)) SUPPLEMENTAL SECURITY INCOME -- DISPOSITION OF UNDERPAYMENT

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URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_80_34c

## Section

- **Citation:** SSR 80-34c
- **Heading:** SSR 80-34c: SECTION 1631(b) (42 U.S.C. 1383(b)) SUPPLEMENTAL SECURITY INCOME -- DISPOSITION OF UNDERPAYMENT
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / SSI / Overpayments and Underpayments / SSR 80-34c

## Text

20 CFR 416.542(b)

SSR 80-34c

Smith v. Califano, 597 F.2d 152 (1979) (CERT.-DENIED (12/3/79))

CHOY, Circuit Judge:

Jeanine R. Smith, as successor in interest to Rosette V. Guidet, appeals
from the district court's granting of summary judgment in favor of the
Secretary of Health, Education and Welfare (the Secretary). We affirm.

I. Statement of the Case

The parties are agreed on the essential facts. Ms. Smith's grandmother,
Rosette V. Guidet, was born in 1895. She was widowed and suffered from a
sight limitation and amputated leg. On January 1, 1974, Mrs. Guidet was
placed in a board and care facility by Smith's husband with the assistance
of the Sacramento County Welfare Department. Though it was understood that
the costs of care would be paid by public assistance
programs, [1] Mr. Smith signed
the admissions agreement, providing for payment of $250 a month in
advance.

In late January and early February, Mrs. Guidet completed the necessary
applications for supplemental security income under Title XVI of the
Social Security Act (the Act), 42 U.S.C. § 1381. Mrs. Guidet died on March
6, 1974, before the Social Security Administration (SSA) completed its
processing of her application. Without completing an eligibility
determination, [2] the SSA denied
payment to Ms. Smith or her successors because:

Section 1631(b) of the Social Security Act provides that money due a
supplemental security income recipient who dies may be paid only to the
deceased individual's surviving husband or wife who was also a
supplemental security income recipient in the month the deceased
individual died. If there is no such surviving husband or wife, the
payments due the deceased recipient cannot be made to anyone.

[1] Upon appeal, an administrative law judge (ALJ) concluded that Mrs.
Guidet's benefits for January and February should be paid either to the
health facility or "to another appropriate representative payee." The ALJ
wrote:
recipient in the month the deceased
individual died. If there is no such surviving husband or wife, the
payments due the deceased recipient cannot be made to anyone.

[1] Upon appeal, an administrative law judge (ALJ) concluded that Mrs.
Guidet's benefits for January and February should be paid either to the
health facility or "to another appropriate representative payee." The ALJ
wrote:

The Appeals Council of HEW on its own motion reviewed the ALJ's decision.
Rejecting the ALJ's conclusion, the Appeals Council wrote:

Ms. Smith then sought review of the Appeals Council's decision in the
district court. [3] Noting that
the health facility had not yet received payment, Ms. Smith asked that the
district court reverse the Appeals Council's decision as legally
erroneous, invalidate those regulations that she asserted were
inconsistent with a proper reading of the Act, direct the Secretary to pay
Mrs. Guidet's benefits "to an appropriate representative payee," and award
costs and attorneys' fees. On cross motions for summary judgment the
district court granted the Secretary's motion and denied Ms. Smith's
motion. [4]

II. Interpretation of § 1631

[2] The parties agree that the payment involved in the present dispute
constitutes an underpayment under the Act. Section 1631(b) of the Act, 42
U.S.C. § 1383(b), provides in part:

Whenever the Secretary finds that more or less than the correct amount of
benefits has been paid with respect to any individual, proper adjustment
or recovery shall . . . be made by appropriate adjustments in future
payments to such individual or by recovery from or payment to such
individual or his eligible spouse (or by recovery from the estate of
either) . . . .
b), provides in part:

Whenever the Secretary finds that more or less than the correct amount of
benefits has been paid with respect to any individual, proper adjustment
or recovery shall . . . be made by appropriate adjustments in future
payments to such individual or by recovery from or payment to such
individual or his eligible spouse (or by recovery from the estate of
either) . . . .

(Emphasis added). The Secretary argues that this provision and the
regulations adopted
thereunder [5] prevent his making
posthumous underpayments to anyone except an eligible spouse. See 40 Fed. Reg. 47762 (1975); 39 Fed. Reg. 2012 (1974). Ms. Smith counters
that subsection (b) does not proscribe payment to appropriate
"representative payees." We believe that the Secretary's interpretation is
correct.

First, the language of § 1631(b) is clear on its face. It specifically
limits the Secretary to giving underpayments only to "such individual or
his eligible spouse." By contrast, where Congress intended to allow
payments to other individuals, it specified such allowance, as in
subsection (a)(2) of § 1631. [6] As we wrote in another context, "[t]he language of a statute is the best
and most reliable index of its meaning, and where the language is clear
and unequivocal it is determinative of its construction." Monte Vista
Lodge v. Guardian Life Insurance Co. , 384 F.2d 126, 128 (9th Cir.
1967), cert. denied, 390 U.S. 950, 88 S.Ct. 1041, 19 L.Ed.2d 1142
, as in
subsection (a)(2) of § 1631. [6] As we wrote in another context, "[t]he language of a statute is the best
and most reliable index of its meaning, and where the language is clear
and unequivocal it is determinative of its construction." Monte Vista
Lodge v. Guardian Life Insurance Co. , 384 F.2d 126, 128 (9th Cir.
1967), cert. denied, 390 U.S. 950, 88 S.Ct. 1041, 19 L.Ed.2d 1142
(1968).

Second, the legislative history indicates that Congress intended that
subsection (b) be interpreted in the Secretary's manner. The House Report
said of the provision which became § 1631(b):

H.Rep. No. 231, 92d Cong., 2d Sess., reprinted in [1972] U.S. Code
Cong. & Admin. News 4989, 5141. Later the House Report reiterated that
subsection (b)

Id . at 5326. These comments demonstrate that Congress intended
subsection (b) to operate as the Secretary here contends.

[3, 4] Third, though the courts remain the final interpreters of an act
of Congress, see FMC v. Seatrain Lines, Inc. 411 U.S. 726, 745-46,
93 S.Ct. 1773, 36 L.Ed.2d 620 (1973); Hart v. McLucas , 535 F.2d
516, 520 (9th Cir. 1976), the courts have also repeatedly recognized that
an administrative agency's reasonable interpretation of the statute which
is administers is deserving of considerable respect. See New York
Department of Social Services v. Dublino , 413 U.S. 405, 421, 93 S.Ct.
2507, 37 L.Ed.2d 688 (1973); Udall v. Tallman , 380 U.S. 1, 16-17,
85 S.Ct. 792, 13 L.Ed.2d 616 (1965); White v. United States Civil
Service Commission , 468 F.2d 1357, 1358 (9th Cir.
1972). [7] In the instant case
the Secretary's reasonable reading of the Act is consistent with both the
language of the statute and congressional pronouncements. We are thus most
reluctant to disregard the Secretary's interpretation.

We conclude, as did the Appeals Council, that subsection (b) does not
authorize the disbursement of Mrs. Guidet's aid to a "representative
payee."
Cir.
1972). [7] In the instant case
the Secretary's reasonable reading of the Act is consistent with both the
language of the statute and congressional pronouncements. We are thus most
reluctant to disregard the Secretary's interpretation.

We conclude, as did the Appeals Council, that subsection (b) does not
authorize the disbursement of Mrs. Guidet's aid to a "representative
payee."

[5] Though apparently acknowledging that on its face subsection (b) does
not authorize such payment, Ms. Smith argues that when that subsection is
read in conjunction with other parts of the Social Security Act a
statutory basis for such payment emerges. First, she notes that the ALJ
found that because Title II of the Social Security Act provides for making
underpayments to individuals other than the eligible person's surviving
spouse, "[t]he parts of the statute must be read reasonably together to
accomplish their purpose. The authorization in the one subsection [of
Title II] is meant to be understood in all the other sections [of the Act,
including Title XVI]."

Section 204(a)(2) and (d) of Title II, 42 U.S.C. § 404(a)(2) &(d),
includes very detailed provision for making underpayments to persons other
than a deceased individual's spouse, including to "the legal
representative of the estate of the deceased." § 204(d)(7). But when
Congress wished to incorporate parts of Title II into the newer Title XVI,
it did so explicitly. For example, subsection (d)(1) of § 1631, the very
section with which we are concerned, selectively incorporates into Title
XVI procedures specified in parts of Title II. Moreover, we cannot infer
such incorporation here because the Title II provision for paying "the
legal representative of the estate" conflicts directly with the language
of § 1631(b) and the House Report's statement that "[u]nderpayments . . .
would not be paid to the estate of a deceased since that would not further
the objective of meeting the current needs of individuals."
f Title II. Moreover, we cannot infer
such incorporation here because the Title II provision for paying "the
legal representative of the estate" conflicts directly with the language
of § 1631(b) and the House Report's statement that "[u]nderpayments . . .
would not be paid to the estate of a deceased since that would not further
the objective of meeting the current needs of individuals."

Ms. Smith responds next that § 1631(a)(2) indicates the propriety of
payment to a payee other than the eligible individual or his spouse. That
provision reads in part:

Regardless of the proper interpretation of this provision vis-a-vis regular SSI payments, Congress has provided that
underpayments should be distributed in accordance with subsection (b),
specifically dealing with underpayments. And "[f]undamental maxims of
statutory construction require that a specific section be found to qualify
a general section. A specific statutory provision will govern even though
general provisions, if standing alone, would include the same subject." Monte Vista Lodge , 384 F.2d at 129; see Clifford F. MacEvoy Co.
v. United States ex rel. Calvin Tompkins Co. , 332 U.S. 102, 107, 64
S.Ct. 890, 88 L.Ed. 1163 (1944).

Ms. Smith argues finally, and most powerfully, that her construction
better satisfies the general congressional policy underlying Title XVI of
helping the elderly and disabled. She notes that families will be less
willing to assist their aged and disabled relatives if they fear that they
will not obtain reimbursement should their relative pass away before
payment. She also notes that the Secretary's interpretation in essence
"rewards" the Secretary for failing to process claims quickly and
accurately because the Government may avoid paying monies otherwise due
should an eligible individual without an eligible spouse die before
payment (as in this case)
y fear that they
will not obtain reimbursement should their relative pass away before
payment. She also notes that the Secretary's interpretation in essence
"rewards" the Secretary for failing to process claims quickly and
accurately because the Government may avoid paying monies otherwise due
should an eligible individual without an eligible spouse die before
payment (as in this case). Finally, she contends that the Secretary's
interpretation creates an incongruous scheme wherein the Secretary can pay
regular SSI benefits under subsection (a)(2) but not underpayments under
subsection (b) to individuals other than an eligible spouse.

We have a good deal of sympathy for Ms. Smith's policy claims. We are
afraid, however, that in light of the legislative history and language of
§ 1631(b), we must reject her effort to redesign the statute. For as the
Supreme Court has recently written:

National Broiler Marketing Association v. United States , 436 U.S.
816, 827, 98 S.Ct. 2122, 2130, 56 L.Ed.2d 728
(1978). [8]

AFFIRMED.

MERRILL, Circuit Judge, dissenting

[1] In his findings of fact,
adopted by the Appeals Council, the administrative law judge wrote:

[2] The administrative law judge
noted: "Although at the time some questions were unsolved, the present
record does not reflect any reason to deny payment other than the
applicant's death." The Government acknowledges that for purposes of this
appeal, it should be assumed that there was no reason to deny benefits for
January and February other than Mrs. Guidet's death.

[3] The parties correctly assert
that the Appeals Councils decision represented a final administrative
decision appealable in district court under 42 U.S.C. §§ 405(g) and
1383(c). The district court's grant of summary judgment constitutes a
final judgment, appealable to this court under 28 U.S.C. § 1291.

[4] This court has recently
written:
and February other than Mrs. Guidet's death.

[3] The parties correctly assert
that the Appeals Councils decision represented a final administrative
decision appealable in district court under 42 U.S.C. §§ 405(g) and
1383(c). The district court's grant of summary judgment constitutes a
final judgment, appealable to this court under 28 U.S.C. § 1291.

[4] This court has recently
written:

Summary judgment may be granted "'only where there is no genuine issue of
any material fact or where viewing the evidence . . . in the light most
favorable to the adverse party, the movant is clearly entitled to prevail
as a matter of law.'" Caplan v. Roberts , 506 F.2d 1039, 1042 (9th
Cir. 1974). See Fed.R Civ. P.56.

Loya v. Immigration & Naturalization Serv. , 583 F.2d 1110,
1113 (9th Cir. 1978). The parties here have agreed on the material facts,
the dispute involving the proper interpretation of relevant statutes and
regulations. Because the case could thus be resolved as a matter of law,
summary judgment was the proper procedural device.

[5] See note 7 infra .

[6] See page 157 infra .

[7] The Secretary's regulations
are consistent with his interpretation of subsection (b). Section
416.542(b), 20 C.F.R., reads in part:

If the Secretary's regulations conflicted with the proper meaning of the
statute they were intended to implement, they would of course be invalid.
See Townsend v. Swank , 404 U.S. 282, 286, 92 S.Ct. 502, 30 L.Ed.2d
448 (1971); Hart v. McLucas , 535 F.2d 516, 520 (9th Cir. 1976). But
where the regulations are reasonable and reflect the language and policy
underlying the statute, the courts should carefully consider the
regulations in determining the proper interpretation of the statute. See Northern Indiana Pub. Serv. Co. v. Porter County Chapter of Izaak
Walton League of America, Inc. , 423 U.S. 12, 15, 96 S.Ct. 172, 46
L.Ed.2d 156 (1975); Ehlert v. United States , 402 U.S. 99, 105, 91
S.Ct. 1319, 28 L.Ed.2d 625 (1971); Bone v
and policy
underlying the statute, the courts should carefully consider the
regulations in determining the proper interpretation of the statute. See Northern Indiana Pub. Serv. Co. v. Porter County Chapter of Izaak
Walton League of America, Inc. , 423 U.S. 12, 15, 96 S.Ct. 172, 46
L.Ed.2d 156 (1975); Ehlert v. United States , 402 U.S. 99, 105, 91
S.Ct. 1319, 28 L.Ed.2d 625 (1971); Bone v. Hibernia Bank , 493 F.2d
135, 139 (9th Cir. 1974).

Ms. Smith refers to § 416.601, which reads in part:

Ms. Smith contends that § 416.601 applies to § 1631(b) and therefore
payment to either her or the health facility as a "representative payee"
would constitute payment to "such individual" within the meaning of §
1631(b). The Secretary responds that § 416.601 cannot be applied to §
1631(b).

We think the Secretary is correct. To invoke the § 416.601(b) equivalency
rule in the context of § 1631(b) would mean that the Secretary could pay
any "appropriate person." This would in effect abrogate the limits of §
1631(b) that Congress intended to apply to underpayments. Instead,
underpayments would essentially be subject to the same rule as are regular
payments under § 1631(a)(2). That is, payment could be made to such
individual or eligible spouse -- the scheme common to subsections (a)(2)
and (b) -- or to an appropriate other person -- a method statutorily
limited to subsection (a)(2). We cannot disregard congressional intent to
limit underpayments under subsection (b) more than regular payments under
subsection (a)(2).
are regular
payments under § 1631(a)(2). That is, payment could be made to such
individual or eligible spouse -- the scheme common to subsections (a)(2)
and (b) -- or to an appropriate other person -- a method statutorily
limited to subsection (a)(2). We cannot disregard congressional intent to
limit underpayments under subsection (b) more than regular payments under
subsection (a)(2).

This conclusion is reinforced by the language of § 416.601. That language
parallels the language Congress employed in § 1631(a)(2), suggesting that
the Secretary intended the regulation to apply in that context and not in
the different § 1631(b) payment scheme. Finally, we note that the
Secretary's reasonable interpretation of his own regulation should be
accorded great respect by a court interpreting the regulation. See Northern Indiana Pub. Serv. Co. , 423 U.S. at 15, 96 S.Ct. 172; Ehlert , 402 U.S. at 105, 91 S.Ct. 1319; Bone , 493 F.2d at
139. This is particularly so here because Congress gave to the Secretary
the task of implementing congressional intent. § 1631(a)(1), 42 U.S.C. §
1383(a)(1). In sum, we concluded that the Secretary's reading of his
regulations is consistent with and supports the proper reading of § 1631.

[8] In the interpretation of his
regulations the Secretary has recognized the same limitation. In January
of 1974 the Secretary first proposed regulations dealing with
underpayments, writing: "If there is no surviving eligible spouse, no one
can receive the underpayment." 39 Fed. Reg. 2012 (1974). After receiving
comments about the proposed regulations, the Secretary noted:

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_80_34c. Check the current official text before relying on it. Not legal advice.
