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SSA

RIN: 0960-AE92

Publication ID: Fall 2003

Title: Administrative Wage Garnishment (To Repay a Debt Owed to the Social Security Administration) (724F)
Abstract: This initiative will enable the Social Security Administration (SSA) to use administrative wage garnishment to collect administrative debts and to collect qualifying, delinquent titles II and XVI overpayment debts owed by individuals who are now employed in other than Federal employment. Administrative wage garnishment allows SSA to order an employer to deduct a percentage of the disposable pay earned by the worker/debtor and to send that amount to SSA as payment toward satisfying the delinquent debt. Administrative wage garnishment does not require a court judgment to impose the withholding order.
Agency: Social Security Administration(SSA)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 20 CFR 404.527 20 CFR 404.903 20 CFR 416.590 20 CFR 416.1403 20 CFR 422.401 to 422.403 20 CFR 422.405 20 CFR 422.410 20 CFR 422.415 20 CFR 422.420 20 CFR 422.425 20 CFR 422.430 20 CFR 422.435 20 CFR 422.440 20 CFR 422.445
Legal Authority: 31 USC 3720D 42 USC 405 42 USC 902 42 USC 1383

Legal Deadline: None

Statement of Need: This regulation is necessary in order for SSA to use administrative wage garnishment as a tool in its debt collection process.

Summary of the Legal Basis: SSA is authorized to use administrative wage garnishment by 31 U.S.C. 3720D.

Alternatives: None. Without regulatory authority SSA would be unable to proceed with administrative wage garnishment in a manner that addresses SSA's particular needs and processes. SSA must either adopt by reference the Treasury Department's regulations on wage garnishment hearings or prescribe SSA regulations regarding such hearings consistent with those Treasury Department regulations. See 31 CFR 285.11(f)(1).

Anticipated Costs and Benefits: The administrative costs for the first year of implementation, including systems start-up costs, will be about 25 work years (WY) and $2 million in fiscal year (FY) 2003. Ongoing costs, once the regulation is fully implemented, are estimated to be about 65 WYs and $5 million per year, with higher costs of 80 WYs and $6 million for FY 2005 as older cases are cleared. The estimated overpayment collections that we could receive for the title II program will be nothing in FY 2003, $25 million in FYs 2004 and 2005, and $15 million in FYs 2006 and 2007. The estimated collections for the title XVI program will be less than $2.5 million in FYs 2003 and 2004, and $10 million in FYs 2005, 2006, and 2007.

Risks: At this time we have not identified any risks associated with the proposal.

Timetable:

Action	Date	FR Cite
NPRM	11/15/2002	67 FR 69164
NPRM Comment Period End	01/14/2003
Final Action	02/00/2004

Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal, Local, State, Tribal
Small Entities Affected: Businesses, Organizations	Federalism: No
Included in the Regulatory Plan: Yes
Agency Contact: Edward Johns Financial Management Analyst Social Security Administration 6401 Security Boulevard, Baltimore, MD 21235-6401 Phone:410 965-0392 Robert J. Augustine Social Insurance Specialist Social Security Administration Office of Regulations, 6401 Security Boulevard, Baltimore, MD 21235-6401 Phone:410 965-0020