Cfr 725.506 - .510

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Federal Register / Vol. 65, No. 245 / Wednesday, December 20, 2000 / Rules and Regulations

payable for periods prior to the effective
date of the order, in addition to any
interest payable for such periods (see
§ 725.608), and shall so notify the
parties. Any computation made by the
district director under this paragraph
shall strictly observe the terms of the
order. Benefits and interest payable for
such periods shall be due on the
thirtieth day following issuance of the
district director’s computation. A copy
of the current table of applicable interest
rates shall be attached to the
computation.
(c) Benefits are payable for monthly
periods and shall be paid directly to an
eligible claimant or his or her
representative payee (see § 725.510)
beginning with the month during which
eligibility begins. Benefit payments
shall terminate with the month before
the month during which eligibility
terminates. If a claimant dies in the first
month during which all requirements
for eligibility are met, benefits shall be
paid for that month.
§ 725.503
payable.

Date from which benefits are

(a) In accordance with the provisions
of section 6(a) of the Longshore Act as
incorporated by section 422(a) of the
Act, and except as provided in
§ 725.504, the provisions of this section
shall be applicable in determining the
date from which benefits are payable to
an eligible claimant for any claim filed
after March 31, 1980. Except as
provided in paragraph (d) of this
section, the date from which benefits are
payable for any claim approved under
part 727 shall be determined in
accordance with § 727.302 (see
§ 725.4(d)).
(b) Miner’s claim. Benefits are payable
to a miner who is entitled beginning
with the month of onset of total
disability due to pneumoconiosis
arising out of coal mine employment.
Where the evidence does not establish
the month of onset, benefits shall be
payable to such miner beginning with
the month during which the claim was
filed. In the case of a miner who filed
a claim before January 1, 1982, benefits
shall be payable to the miner’s eligible
survivor (if any) beginning with the
month in which the miner died.
(c) Survivor’s claim. Benefits are
payable to a survivor who is entitled
beginning with the month of the miner’s
death, or January 1, 1974, whichever is
later.
(d) If a claim is awarded pursuant to
section 22 of the Longshore Act and
§ 725.310, then the date from which
benefits are payable shall be determined
as follows:

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(1) Mistake in fact. The provisions of
paragraphs (b) or (c) of this section, as
applicable, shall govern the
determination of the date from which
benefits are payable.
(2) Change in conditions. Benefits are
payable to a miner beginning with the
month of onset of total disability due to
pneumoconiosis arising out of coal mine
employment, provided that no benefits
shall be payable for any month prior to
the effective date of the most recent
denial of the claim by a district director
or administrative law judge. Where the
evidence does not establish the month
of onset, benefits shall be payable to
such miner from the month in which
the claimant requested modification.
(e) In the case of a claim filed between
July 1, 1973, and December 31, 1973,
benefits shall be payable as provided by
this section, except to the extent
prohibited by § 727.303 (see § 725.4(d)).
(f) No benefits shall be payable with
respect to a claim filed after December
31, 1973 (a part C claim), for any period
of eligibility occurring before January 1,
1974.
(g) Each decision and order awarding
benefits shall indicate the month from
which benefits are payable to the
eligible claimant.
§ 725.504 Payments to a claimant
employed as a miner.

(a) In the case of a claimant who is
employed as a miner (see § 725.202) at
the time of a final determination of such
miner’s eligibility for benefits, no
benefits shall be payable unless:
(1) The miner’s eligibility is
established under section 411(c)(3) of
the Act; or
(2) the miner terminates his or her
coal mine employment within 1 year
from the date of the final determination
of the claim.
(b) If the eligibility of a working miner
is established under section 411(c)(3) of
the Act, benefits shall be payable as is
otherwise provided in this part. If
eligibility cannot be established under
section 411(c)(3), and the miner
continues to be employed as a miner in
any capacity for a period of less than 1
year after a final determination of the
claim, benefits shall be payable
beginning with the month during which
the miner ends his or her coal mine
employment. If the miner’s employment
continues for more than 1 year after a
final determination of eligibility, such
determination shall be considered a
denial of benefits on the basis of the
miner’s continued employment, and the
miner may seek benefits only as
provided in § 725.310, if applicable, or
by filing a new claim under this part.
The provisions of Subparts E and F of

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this part shall be applicable to claims
considered under this section as is
appropriate.
(c) In any case where the miner
returns to coal mine or comparable and
gainful work, the payments to such
miner shall be suspended and no
benefits shall be payable (except as
provided in section 411(c)(3) of the Act)
for the period during which the miner
continues to work. If the miner again
terminates employment, the district
director may require the miner to
submit to further medical examination
before authorizing the payment of
benefits.
§ 725.505

Payees.

Benefits may be paid, as appropriate,
to a beneficiary, to a qualified
dependent, or to a representative
authorized under this subpart to receive
payments on behalf of such beneficiary
or dependent.
§ 725.506 Payment on behalf of another;
‘‘legal guardian’’ defined.

Benefits are paid only to the
beneficiary, his or her representative
payee (see § 725.510) or his or her legal
guardian. As used in this section, ‘‘legal
guardian’’ means an individual who has
been appointed by a court of competent
jurisdiction or otherwise appointed
pursuant to law to assume control of
and responsibility for the care of the
beneficiary, the management of his or
her estate, or both.
§ 725.507 Guardian for minor or
incompetent.

An adjudication officer may require
that a legal guardian or representative be
appointed to receive benefit payments
payable to any person who is mentally
incompetent or a minor and to exercise
the powers granted to, or to perform the
duties otherwise required of such
person under the Act.
§ 725.510

Representative payee.

(a) If the district director determines
that the best interests of a beneficiary
are served thereby, the district director
may certify the payment of such
beneficiary’s benefits to a representative
payee.
(b) Before any amount shall be
certified for payment to any
representative payee for or on behalf of
a beneficiary, such representative payee
shall submit to the district director such
evidence as may be required of his or
her relationship to, or his or her
responsibility for the care of, the
beneficiary on whose behalf payment is
to be made, or of his or her authority to
receive such a payment. The district
director may, at any time thereafter,
require evidence of the continued

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Federal Register / Vol. 65, No. 245 / Wednesday, December 20, 2000 / Rules and Regulations
existence of such relationship,
responsibility, or authority. If a person
requesting representative payee status
fails to submit the required evidence
within a reasonable period of time after
it is requested, no further payments
shall be certified to him or her on behalf
of the beneficiary unless the required
evidence is thereafter submitted.
(c) All benefit payments made to a
representative payee shall be available
only for the use and benefit of the
beneficiary, as defined in § 725.511.
§ 725.511

Use and benefit defined.

(a) Payments certified to a
representative payee shall be considered
as having been applied for the use and
benefit of the beneficiary when they are
used for the beneficiary’s current
maintenance—i.e., to replace current
income lost because of the disability of
the beneficiary. Where a beneficiary is
receiving care in an institution, current
maintenance shall include the
customary charges made by the
institution and charges made for the
current and foreseeable needs of the
beneficiary which are not met by the
institution.
(b) Payments certified to a
representative payee which are not
needed for the current maintenance of
the beneficiary, except as they may be
used under § 725.512, shall be
conserved or invested on the
beneficiary’s behalf. Preferred
investments are U.S. savings bonds
which shall be purchased in accordance
with applicable regulations of the U.S.
Treasury Department (31 CFR part 315).
Surplus funds may also be invested in
accordance with the rules applicable to
investment of trust estates by trustees.
For example, surplus funds may be
deposited in an interest or dividend
bearing account in a bank or trust
company or in a savings and loan
association if the account is either
federally insured or is otherwise insured
in accordance with State law
requirements. Surplus funds deposited
in an interest or dividend bearing
account in a bank or trust company or
in a savings and loan association must
be in a form of account which clearly
shows that the representative payee has
only a fiduciary, and not a personal,
interest in the funds. The preferred
forms of such accounts are as follows:
Name of beneficiary lllllllllll
by (Name of representative payee)
representative payee,
or (Name of beneficiary)
by (Name of representative payee) trustee,
U.S. savings bonds purchased with surplus
funds by a representative payee for an
incapacitated adult beneficiary should be
registered as follows: (Name of beneficiary)

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(Social Security No.), for whom (Name of
payee) is representative payee for black lung
benefits.
§ 725.512 Support of legally dependent
spouse, child, or parent.

If current maintenance needs of a
beneficiary are being reasonably met, a
relative or other person to whom
payments are certified as representative
payee on behalf of the beneficiary may
use part of the payments so certified for
the support of the legally dependent
spouse, a legally dependent child, or a
legally dependent parent of the
beneficiary.
§ 725.513

Accountability; transfer.

(a) The district director may require a
representative payee to submit periodic
reports including a full accounting of
the use of all benefit payments certified
to a representative payee. If a requested
report or accounting is not submitted
within the time allowed, the district
director shall terminate the certification
of the representative payee and
thereafter payments shall be made
directly to the beneficiary. A
certification which is terminated under
this section may be reinstated for good
cause, provided that all required reports
are supplied to the district director.
(b) A representative payee who has
conserved or invested funds from
payments under this part shall, upon
the direction of the district director,
transfer any such funds (including
interest) to a successor payee appointed
by the district director or, at the option
of the district director, shall transfer
such funds to the Office for
recertification to a successor payee or
the beneficiary.
§ 725.514 Certification to dependent of
augmentation portion of benefit.

(a) If the basic benefit of a miner or
of a surviving spouse is augmented
because of one or more dependents, and
it appears to the district director that the
best interests of such dependent would
be served thereby, or that the augmented
benefit is not being used for the use and
benefit (as defined in this subpart) of the
augmentee, the district director may
certify payment of the amount of such
augmentation (to the extent attributable
to such dependent) to such dependent
directly, or to a legal guardian or a
representative payee for the use and
benefit of such dependent.
(b) Any request to the district director
to certify separate payment of the
amount of an augmentation in
accordance with paragraph (a) of this
section shall be in writing on such form
and in accordance with such
instructions as are prescribed by the
Office.

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80087

(c) The district director shall specify
the terms and conditions of any
certification authorized under this
section and may terminate any such
certification where appropriate.
(d) Any payment made under this
section, if otherwise valid under the
Act, is a complete settlement and
satisfaction of all claims, rights, and
interests in and to such payment, except
that such payment shall not be
construed to abridge the rights of any
party to recoup any overpayment made.
§ 725.515 Assignment and exemption from
claims of creditors.

(a) Except as provided by the Act and
this part, no assignment, release, or
commutation of benefits due or payable
under this part by a responsible operator
shall be valid, and all benefits shall be
exempt from claims of creditors and
from levy, execution, and attachment or
other remedy or recovery or collection
of a debt, which exemption may not be
waived.
(b) Notwithstanding any other
provision of law, benefits due from, or
payable by, the Black Lung Disability
Trust Fund under the Act and this part
to a claimant shall be subject to legal
process brought for the enforcement
against the claimant of his or her legal
obligations to provide child support or
make alimony payments to the same
extent as if the fund was a private
person.
Benefit Rates
§ 725.520

Computation of benefits.

(a) Basic rate. The amount of benefits
payable to a beneficiary for a month is
determined, in the first instance, by
computing the ‘‘basic rate.’’ The basic
rate is equal to 371⁄2 percent of the
monthly pay rate for Federal employees
in GS–2, step 1. That rate for a month
is determined by:
(1) Ascertaining the lowest annual
rate of pay (step 1) for Grade GS–2 of the
General Schedule applicable to such
month (see 5 U.S.C. 5332);
(2) Ascertaining the monthly rate
thereof by dividing the amount
determined in paragraph (a)(1) of this
section by 12; and
(3) Ascertaining the basic rate under
the Act by multiplying the amount
determined in paragraph (a)(2) of this
section by 0.375 (that is, by 371⁄2
percent).
(b) Basic benefit. When a miner or
surviving spouse is entitled to benefits
for a month for which he or she has no
dependents who qualify under this part
and when a surviving child of a miner
or spouse, or a parent, brother, or sister
of a miner, is entitled to benefits for a
month for which he or she is the only

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