Regulations - 20 CFR 416.2010 and 416.2090
Social Security Act as amended by the Omnibus Budget Reconciliation Act of 1993, Part III, Section 13731 and the Balanced Budget Act of 1997, Section 5102
TN 7 (03-99)
SI 02901.500 State Payments
Each State that enters into an agreement with the Secretary for Federal administration of a State's mandatory and/or optional supplementary payments must pay the Social Security Administration (SSA) an amount sufficient to cover the State's liability for these expenditures. In addition, State liability will include a fee to cover the cost to the Federal government of administering the State's supplementary payments. The monthly administration fee is $1.67 for each supplementary payment in Federal fiscal year (FFY) 1994; $3.33 in FFY 1995; $5.00 in FFY 1996 and 1997; $6.20 in FFY 1998; $7.60 in FFY 1999; $7.80 in FFY 2000; $8.10 in FFY 2001; $8.50 in FFY 2002. Fees for subsequent years will be the applicable rate in the preceding fiscal year, increased by the percentage, if any, by which the Consumer Price Index for the month of June of the calendar year of the increase exceeds the Consumer Price Index for the month of June in the preceding calendar year, and rounded to the nearest whole cent; or such different rate as the Commissioner determines is appropriate for the State.
2. State Liability
State liability is determined monthly by SSA under the provisions of the State supplementation agreement.
3. State Funding
Each month the State is required to transfer funds to SSA to cover its estimated monthly liability. Electronic transfer of funds is the preferred method of funds transfer (see SI 02901.510 B).
Transfer of funds must be made in time to ensure that monies are on deposit with SSA on the fifth business day after payments are to be made to recipients. States subject to the provisions of the Cash Management Improvement Act of 1990, will be charged an interest penalty for late payments.