Supporting_Statement--0395_(2007)[1][1]

Supporting Statement for Form SSA-150

Modified Benefit Formula Questionnaire

OMB # 0960-0395

A.Justification

1. Sections 215(a)(7) and 215(d)(3) of the Social Security Act contain the formulas that must be used to compute the Social Security benefits for retired and disabled workers receiving pensions from employment that are not covered by Social Security. The Technical and Miscellaneous Revenue Act of 1988 provides a change in the way the Social Security Administration (SSA) computes benefits for retired and disabled workers receiving pensions from employment not covered by Social Security. The purpose of the Windfall Elimination Provision (WEP) is to remove an unintended advantage that the Social Security benefit formula provided for persons who have substantial pensions from non-covered employment. Form SSA-150 is designed to collect the information necessary to determine the correct formula to be used in computing the benefits for these claimants.

2. The Social Security Administration uses the information collected by the SSA‑150 to determine the correct formula to be used in computing the Social Security benefit for someone who receives a pension from employment not covered by Social Security. WEP requires use of a benefit formula that replaces a smaller percentage of a worker's pre-retirement earnings. However, the difference in the benefit computed using the modified and regular formulas cannot be greater than one-half the amount of the pension received in the first month an individual is entitled to both the pension and the Social Security benefit. The SSA-150 collects the information needed to make all the necessary benefit computations. Respondents are applicants for old age and disability benefits.

3. The information requested on the SSA -150 is collected on the attached Modernized Claims System (MCS) screens. SSA estimates that about 80 percents of the claimants provide the information through a personal interview with a claims representative who completes the MCS screens. We also make the form available to the public as a printable PDF through SSA’s website.

4. The nature of the information being collected and the manner in which it is collected preclude duplication. There is no other collection instrument used by SSA that collects data similar to that collected here.

4. This collection does not have an impact on small businesses or other small entities.

4. SSA collects this information to prevent a windfall of Social Security benefits for retired and disabled workers. If it is not collected, claimants who are receiving benefits from employment not covered by Social Security would receive an incorrect benefit amount from Social Security which would not be compliant with WEP. Therefore, this information could not be collected less frequently. There are no technical or legal obstacles that prevent burden reduction.

4. There are no special circumstances that would cause this information collection to be conducted in a manner that is not consistent with 5 CFR 1320.5.

8. The 60-day advance Federal Register Notice was published on November 5, 2007, 72 FR 62510 and SSA has received no public comments. The second Notice was published on February 27, 2008, 73 FR 10505. There have been no outside consultations with members of the public.

9. SSA provides no payment or gifts to the respondents.

9. The information requested is protected and held confidential 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.

9. The information collection does not contain any questions of a sensitive nature.

12. Approximately 90,000 respondents will use form SSA-150. The estimated average response time is 8 minutes, for a total of 12,000 burden hours. The total burden is reflected as burden hours, and no separate cost burden has been calculated.

13. There is no known cost burden to the respondents.

14. The annual cost to the Federal Government is approximately $138,600. This estimate is a projection of the costs for printing and distributing the collection instrument and for collecting the information.

15. There are no changes in the public reporting burden.

15. The results of the information collection will not be published.

15. OMB has granted SSA an exemption from the requirement that the expiration date for OMB approval be printed on its program forms. SSA produces millions of public-use forms, many of which have a life cycle longer than that of an OMB approval. SSA does not periodically revise and reprint its public-use forms (e.g., on an annual basis). This exemption was granted so that otherwise useable editions of forms would not be taken out of circulation because the expiration date had been reached. In addition, Government waste has been avoided because stocks of forms will not have to be destroyed and reprinted.

15. 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

Statistical methods are not used for this information collection.

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