A. Justification
Introduction/Authoring Laws and Regulations
Section 205(a) of the Social Security Act (Act) and 20 CFR 404.452-404.455 of the Code of Federal Regulations authorize the Commissioner of the Social Security Administration (SSA) to request earnings information from a working beneficiary receiving monthly Social Security Benefits. Section 203(h) of the Act and 20 CFR 404.452-404.455 require individuals entitled to benefits on their own behalf (or receiving benefits on behalf of another) to provide an estimate of earnings for the current year. Section 203(h)(4) of the Act, as amended by the Deficit Reduction Act of 1984, authorizes the Commissioner of Social Security to implement procedures precluding SSA from paying incorrect benefits to working beneficiaries who fail to file a correct report or estimate of earnings. Section 203 of the Act, as amended by the Senior Citizens Freedom to Work Act of 2000, eliminated the earnings test at full retirement age.
Description of Collection
SSA developed the Annual Earnings Test Direct Mail Follow-up Program to improve beneficiary reporting on work and earnings during the year and earnings information at the end of the year. SSA may reduce benefits payable under the Act when an individual has wages or self-employment income exceeding the annual exempt amount. SSA identifies beneficiaries likely to receive more than the annual exempt amount, and requests more frequent estimates of earnings from them. When applicable, SSA also requests a future year estimate to reduce overpayments due to earnings. SSA sends letters (SSA-L9778, SSA-L9779, SSA-L9781, SSA-L9784, SSA-L9785, and
SSA-L9790) to beneficiaries requesting earnings information the month prior to their attainment of full retirement age. We send each beneficiary a tailored letter that includes relevant earnings data from SSA records. The Annual Earnings Test Direct Mail
Follow-up Program helps to ensure Social Security payments are correct; and enables us to prevent earnings-related overpayments, and avoid erroneous withholding. The respondents are working Social Security beneficiaries with earnings over the exempt amount.
Use of Information Technology to Collect the Information
SSA did not create an electronic version of these forms under the agency’s Government Paperwork Elimination Act plan because we currently do not have an electronic system to capture and process the requested information due to budgetary constraints. In addition, this is an agency-initiated collection, and we only send these letters on an
as needed basis.
Why We Cannot Use Duplicate Information
The nature of the information we collect and the manner in which we collect it preclude duplication. SSA does not use another collection instrument to obtain similar data.
Minimizing Burden on Small Respondents
This collection does not affect small businesses or other small entities.
Consequence of Not Collecting Information or Collecting it Less Frequently
If we did not collect this information, overpayments to beneficiaries could result. We can avoid many overpayments by contacting certain beneficiaries when much of the earnings year is past, but in time to improve the accuracy of their earnings estimate and to adjust current year benefits. Because we collect this information on an as needed basis, we cannot collect it les frequently. There are no technical or legal obstacles to burden reduction.
7. Special Circumstances
There are no special circumstances that would cause SSA to conduct this information collection in a manner inconsistent with 5 CFR 1320.5.
Solicitation of Public Comment and Other Consultations with the Public
The 60-day advance Federal Register Notice published on March 7, 2017, at
82 FR 12878, and we received no public comments. The 30-day FRN published on
May 12, 2017 at 82 FR 22173. If we receive any comments in response to this Notice, we will forward them to OMB. We did not consult with the public in the revision/maintenance of these forms.
Payment or Gifts to Respondents
SSA does not provide payments or gifts to the respondents.
Assurances of Confidentiality
SSA protects and holds confidential the information it collects in accordance with 42 U.S.C. 1306, 20 CFR 401 and 402, 5 U.S.C. 552 (Freedom of Information Act), 5 U.S.C. 552a (Privacy Act of 1974), and OMB Circular No. A-130.
Justification for Sensitive Questions
The information collection does not contain any questions of a sensitive nature.
Estimates of Public Reporting Burden
Modality of Completion |
Number of Respondents |
Frequency of Response |
Average Burden Per Response (minutes) |
Estimated Total Annual Burden (hours) |
SSA-L9778 |
42,630 |
1 |
10 |
7,105 |
SSA-L9779 |
158,865 |
1 |
10 |
26,478 |
SSA-L9781 |
472,437 |
1 |
10 |
78,740 |
SSA-L9784 |
1,270 |
1 |
10 |
212 |
SSA-L9785 |
15,870 |
1 |
10 |
2,645 |
SSA-L9790 |
45,000 |
1 |
10 |
7,500 |
Totals |
736,072 |
|
|
122,680 |
The total burden for this ICR is 122,680 hours. This figure represents burden hours and we did not calculate a separate cost burden.
Annual Cost to the Respondents (Other)
This collection does not impose a known cost burden to the respondents.
Annual Cost To Federal Government
The annual cost to the Federal Government is approximately $2,085,537. This estimate is a projection of the costs for printing and distributing the collection instrument and for collecting the information.
15. Program Changes or Adjustments to the Information Collection Request
There are no changes to the public reporting burden.
16. Plans for Publication Information Collection Results
SSA will not publish the results of the information collection.
17. Displaying the OMB Approval Expiration Date
OMB granted SSA an exemption from the requirement to print the OMB expiration date on its program forms. SSA produces millions of public-use forms with life cycles exceeding those of an OMB approval. Since SSA does not periodically revise and reprint its public-use forms (e.g., on an annual basis), OMB granted this exemption so SSA would not have to destroy stocks of otherwise useable forms with expired OMB approval dates, avoiding Government waste.
Exceptions to Certification Statement
SSA is not requesting an exception to the certification requirements at 5 CFR 1320.9 and related provisions at 5 CFR 1320.8(b)(3).
B. Collections of Information Employing Statistical Methods
SSA does not use statistical methods for this information collection.
| File Type | application/msword |
| File Title | Title of Information Collection and Form Number(s) |
| Author | Naomi |
| Last Modified By | Mandley, Tasha |
| File Modified | 2017-05-31 |
| File Created | 2017-01-11 |