Why is this issue important? In recent years, SSA’s representative payment program has received attention from: Congress the Federal Courts the media advocacy groups

Social Security Program: Reference Materials Social Security Program: Understanding the Benefits Pub No. 05-10024 Retirement Benefits Pub No. 05-10035 Disability Benefits Pub No. 05-10029 Survivors Benefits Pub No. 05-10084 Working While Disabled…How We Can Help Pub No. 05-10095 Basic Facts Pub No. 5-10080

Reference Materials Supplemental Security Income Program: A Guide to SSI for Groups and Organizations Pub No. 05-11015 What You Need to Know When You Get SSI Pub No. 05-11011 Understanding Supplemental Security Income Pub No. 17-008 Representative Payment Program: A Guide for Representative Payees Pub No. 05-10076 What You Should Know When A Payee Manages Your Money Pub No. 05-10097 Guide for Organizational Payees Pub No. 17-013

Unit 1

Two major benefit programs 1.Retirement, Survivors & Disability Insurance (RSDI) Social insurance program Protects workers & their families from loss of earnings due to: retirement, death, or disability Unit 1

Two major benefit programs: 2.Supplemental Security Income Federal income maintenance program Provides cash assistance for: aged, blind, or disabled people with little or no income or resources Unit 1

Unit 2

The representative payment program Assists most vulnerable members of society who are: young, or elderly, or disabled, and/or not capable of managing or directing someone else to manage their finances. Unit 2

What is a representative payee? Person, Agency, Organization, or Institution selected to receive and manage benefits on behalf of an incapable or legally incompetent beneficiary. Unit 2

Who needs a representative payee? Children under age 18 Beneficiaries determined legally incompetent Beneficiaries determined by SSA to be incapable of handling their money Unit 2

Power-of-Attorney For Social Security, having power-of-attorney or a joint bank accounting with the beneficiary is NOT the same thing as being a representative payee. Being a Social Security representative payee does not entitle an individual to manage any funds that aren’t Social Security or SSI payments. “Power of Attorney” is a common arrangement that enables families to take care of a person’s bills and other legal matters. But Social Security doesn’t recognize power of attorney procedures because they don’t include provisions for the responsibility and accountability that Social Security requires of its representative payees. Having power of attorney or a joint bank account with the beneficiary is not the same thing as being a representative payee. Unit 2

Unit 3

Applying to be a representative payee Contact your local Social Security office Face-to-face interview Documented proof of identity Current mailing & location address Bank account information (for direct deposit) Unit 3

How SSA selects a payee Conduct a face-to-face interview to: Determine relationship to the beneficiary, Discuss qualifications, Discuss ability to carry out responsibilities of a rep payee, Explain rep payee duties, Explain reporting responsibilities, and Explain liability for not reporting changes. Unit 3

Requests for a change of payee Social Security will: Contact the current payee for his or her views Investigate allegations raised about the current payee’s suitability to serve Send a notice to the current payee explaining the change Unit 3

Unit 4

Duties of an organizational representative payee Use the payments for the beneficiary’s current needs & save the remainder. File accounting report. Notify Social Security when the beneficiary is no longer your responsibility Unit 4

Duties of an organizational representative payee Report all required events File an annual report of earnings Notify SSA when you can no longer serve as payee Return any conserved funds if you stop being payee Unit 4

Other ways to help the beneficiary Meet regularly with him/her Establish a budget & discuss it with him/her Involve him/her in financial decisions Explain Social Security and SSI payments Explain expenses Make him/her aware of large retroactive payments Unit 4

Other ways to help the beneficiary Help him/her find needed services Help him/her fill out applications for needed services Help him/her get medical treatment, as needed Negotiate with landlords & others for best deals Help him/her file income tax returns Recommend new payee if you cannot continue to serve Unit 4

Unit 5

Any changes in the life of a beneficiary that could change his or her benefit. For example: Death Marriage, divorce or annulment Change in school attendance Change of address/moves No longer has a child in care Convicted of a crime Medical condition improves Starts working Unit 5

Receives worker’s compensation Discharged from the hospital Household changes Leaves the United States Admitted to a hospital Income changes Resources change Example for bullet 4 (change in beneficiary’s income/resources); i.e., a child’s SSI benefit check may change if there are any changes in the family income or resources. Unit 6 of the lesson plan and Pages 5 and 7 of Form SSA-11 provide a comprehensive list of reporting responsibilities. Unit 5

For children receiving SSI... You may be required to obtain treatment for the child’s disabling condition when medically necessary. Unit 5

The death of a beneficiary Social Security Benefits: No check is payable for the month of death, even if death occurs on the last day of the month Checks received for month of death or later must be returned Supplemental Security Income: Check is payable for month of death Checks that arrive after month of death must be returned Unit 5

An overpayment is any amount of money received for any period that exceeds the total amount of money that should have been paid. Unit 5

Unit 6

How to spend a beneficiary’s money As a representative payee, you have the responsibility to use benefits received only for the use & benefit of the beneficiary. Current maintenance needs include: Food Clothing Medical Care Housing Personal comfort items Reasonably foreseeable needs Unit 6

Beneficiaries in nursing homes or institutions Set aside at least $30 a month for the beneficiary’s personal needs or for savings on his or her behalf. Institutions For Social Security (not SSI), part of the funds can be used for the support of the beneficiary’s dependent spouse, child, and/or parent. Unit 6

Outstanding debts If current & foreseeable needs are met, you may use the beneficiary’s funds to satisfy past debts. You are not required to pay past debts unless it involves: Repayment of Social Security or SSI overpayment An IRS levy for income tax purposes Garnishment (child support & alimony) Unit 6

Spending large sums of money Large sums of money must be used in the best interest of the beneficiary. Your first priority is to meet the beneficiary’s current needs for: Food Housing Medical Care Other items for personal comfort Unit 6

Handling large sums of money If there’s money left over after basic needs are met, money may be spent on: Things that improve the beneficiary’s living conditions Providing better medical care Training to help beneficiary become more self-sufficient Major health-related expenses Recreational activities Unit 6

Large purchases A representative payee can make some of these special purchases for comfort of the beneficiary: Home Home improvements Furniture Car Uncertain about an expenditure? Contact your local Social Security Office. Unit 6

$2,000 resource limit for SSI Example of “resources”are: property, stocks, bonds, or bank accounts For an individual receiving SSI, savings and other resources are limited to $2,000 For a couple receiving SSI, the limit is $3,000 Note: Not all resources count toward these limits; check with your local Social Security Office for additional information. Unit 6

Unit 7

Improper use of benefits An unwise expenditure of benefits in a manner that isn’t in the best interest of the beneficiary. Example: A payee takes the beneficiary to the circus instead of buying him/her needed clothes. Unit 7

Misuse of benefits Occurs when money is not spent on the beneficiary or saved for future needs SSA decides if misuse has occurred, and makes a misuse determination. Unit 7

SSA will then initiate action to recover misused funds. Misuse of benefits If misuse is found, SSA may: Appoint a new payee, or Make direct payment to the beneficiary, and Obtain restitution from the misuser, and Refer the case to the OIG for possible criminal prosecution SSA will then initiate action to recover misused funds. Unit 7

Unit 8

Titling for checking and savings accounts Checking and savings account titles must show the beneficiary as the owner and that the payee has only a fiduciary (and not personal) interest in the funds. Two examples of bank account titles: “(Beneficiary’s name) by (your name), representative payee,” or “(Your name), representative payee for (beneficiary’s name).” The beneficiary retains ownership but not direct access to the funds. Unit 8

Unit 9

Special rules for collective accounts Account separate from organization’s operating account. If a fee-for-service payee, deduct your fees & move to your operating account Keep clear records showing amount of each beneficiary’s share If beneficiary has more than $500, funds should be placed in interest bearing account. Unit 9

Special rules for collective accounts (cont’d) Credit each beneficiary with his/her share of interest Set aside $30 per person for personal needs Funds belonging to a beneficiary can only be used for his or her needs Have account records available if requested by SSA Unit 9

Titles for collective accounts Examples of recommended titles for a collective account: “Sunnydale Nursing Home, representative payee for Social Security beneficiaries” or “Sunnydale Patient’s Fund for Social Security beneficiaries” Unit 9

Unit 10

Dedicated accounts The law requires representative payees to maintain a dedicated account at a financial institution for deposit of past due SSI benefits. Dedicated accounts affect children under 18 who: Receive SSI due to disability or blindness Have a representative payee Are due past monthly SSI payments Unit 10

Unit 11

These documents should be kept for a minimum of 2 years. What records should an organization keep? Bank statements, Invoices, Receipts, Leases These documents should be kept for a minimum of 2 years. Unit 11

Developing an accounting system Must show for each beneficiary: how much money was received, and how much money was spent, and the balance saved for each beneficiary. Unit 11

Unit 12

Monitoring organizational payees Meet to discuss your practices Review financial records Speak with beneficiaries Unit 12

Unit 13

Fee-for-Service Organizations authorized to collect a fee from a beneficiary’s Social Security or SSI payment. Fee is intended to cover expenses for providing payee services. Unit 13

Current fee amounts Effective December 2000, the authorized fee is the lesser of: 10% of the monthly benefit amount or $29 For disabled individuals who have been determined by SSA as having a drug addiction or alcoholism problem, the fee is the lesser of: 10% of the monthly benefit amount or $56 Unit 13

Monitoring fee-for-service payees Site visits Accounting reports Annual certification Verification of beneficiaries Unit 13

Monitoring fee-for-service payees Review triennially via: Face-to-face meeting Examination of a sample of beneficiary records Review organization’s record keeping Unit 13

Monitoring fee-for-service payees Verify expenses with the beneficiary’s service providers Speak with the beneficiaries Unit 13

Unit 14

Direct deposit Safe Reliable Economical Convenient Unit 14

Thank you for working with us! Need more information? 1-800-772-1213 http://www.ssa.gov http://www.ssa/gov/payee Thank you for working with us!