March 28, 2003

Social Security Administration’s Proposed Changes to Issuance of Social Security Numbers

On March 26, 2003, the Social Security Administration (SSA) released a proposed rule (copy below) that will change the regulations governing its criteria for issuance of Social Security Numbers (SSN). Generally, the proposed rules are in line with experiences of most foreign nationals who have attempted to obtain a social security number over the course of the last year. Specifically, the new regulations address requirements for in-person interviews of applicants for original numbers and cards, evidentiary requirements for verification of identity, and issuance of numbers to aliens for "valid nonwork reasons."

If your company employs foreign nationals on a regular basis, GT highly recommends submission of comments in response to the proposed rule in an effort to spotlight the issues that are bound to arise as a result of these new regulations. Comments can be submitted until May 27, 2003.

In response to previous SSA proposals to increase scrutiny and decrease the availability of SSNs, comments that have been submitted addressed the following issues:

• Proposed changes did not go far enough and that SSNs should only be assigned for SSA programmatic purposes.
• Concern that restrictions would limit access to public benefits.
• Impact on ability to obtain driver’s license. According to the federal register the SSA has worked with US DOT and states requiring SSNs for issuing driver’s licenses to develop alternative identifier systems to accommodate individuals not authorized to work in U.S. However, the agency has also acknowledged that while some states have now completed arrangements for an alternative identifier system, not all have done so.

The specific proposed changes include the following:

• All applicants for original SSNs aged 12 and older must be present for in person interviews. These individuals are likely to be asked if they have ever had an SSN issued to them and if not they should be able to explain why they waited so long to obtain one. Current regulations only require in-person interviews of applicants aged 18 or older.
• Evidence acceptable for verification of identity will be restricted to an identity document that includes sufficient biographical or physical information to identify the applicant. The document should include the applicant’s name, age or date of birth, parentss names, photograph or physical description.

In light of this new requirement, birth certificates will no longer be sufficient. The SSA recommends medical or school records for those who do not have driver’s licenses.

Current regulations allow for the use of any of the following to verify identity:

1. Driver’s license
2. Identity card
3. School record
4. Medical record
5. Marriage record
6. Passport
7. INS document
8. Or other similar documents (Birth Certificate)

• The regulations also provide details on eligibility for SSNs. Specifically, "valid nonwork reason" for those that do not have evidence of work authorization will be restricted to instances where the applicant needs the SSN to:

1. Satisfy federal statute or regulation requiring the alien to have a SSN to receive federally funded benefit such as TANF, SSI Benefits to which the alien has established entitlement.
2. Satisfy state or local law requiring SSN to receive general public assistance benefits to which the alien has established entitlement.

Prior to March 1, 2002 SSA operational instructions allowed issuance of a SSN if a local statute or regulation required the SSN. This often included state statutes requiring an SSN to issue driver’s licenses, or for motor vehicle registration.

In addition, prior to 1998, the SSA accepted IRS tax reporting purposes as a valid reason for requesting a SSN. However, on October 22, 1998, the IRS issued a final rule eliminating references to IRS tax reporting purposes as valid nonwork reasons for assignment of a SSN. This was a result of a IRS’ determination in July 1996 IRS to assign ITINs for tax purposes for people who were ineligible for a SSN, but who needed to report income for tax purposes.

Concerns over restrictions to obtaining a SSN are fundamental. Many of our record keeping systems have been developed with the assumption that a SSN will be available as the primary identifier. As the SSA continues to revise its regulations in an effort to reduce fraud and misuse of social security cards and numbers, it is becoming more and more difficult for foreign nationals temporarily residing in the U.S. to function and lead "normal" lives. What once was a simple task of obtaining a driver’s license or adding a spouse to life insurance or health insurance plans is slowly becoming more difficult than obtaining authorization to enter the U.S. with dependents. Hopefully, our record keeping systems in industries affecting the day to day lives of individuals living and working in the U.S. will be able to adjust quickly enough to allow for efficient and smooth transitions to the implementation of a new "identifier" that is not linked to the now infamous SSN.

  20 CFR Part 422 (PDF/60 kb, 5 pages)