2. 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

3. Social Security Program:
Reference Materials
Social Security Program:
Understanding the Benefits Pub No
Retirement Benefits Pub No
Disability Benefits Pub No
Survivors Benefits Pub No
Working While Disabled…How We Can Help
Pub No
Basic Facts
Pub No

4. Reference Materials Supplemental Security Income Program:
A Guide to SSI for Groups and Organizations Pub No
What You Need to Know When You Get SSI Pub No
Understanding Supplemental Security Income Pub No
Representative Payment Program:
A Guide for Representative Payees Pub No
What You Should Know When A Payee Manages Your Money Pub No
Guide for Organizational Payees Pub No

5. Unit 1

6. 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

7. 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

8. Unit 2

9. 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

10. 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

11. 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

12. 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

13. Unit 3

14. 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

15. 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

16. 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

17. Unit 4

18. 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

19. 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

20. 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

21. 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

22. Unit 5

23. 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

24. 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

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

26. 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

27. 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

28. Unit 6

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. $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

36. Unit 7

37. 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

38. 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

39. 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

40. Unit 8

41. 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

42. Unit 9

43. 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

44. 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

45. 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

46. Unit 10

47. 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

48. Unit 11

49. 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

50. 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

51. Unit 12

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

53. Unit 13

54. 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

55. 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

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

57. 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

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

59. Unit 14

60. Direct deposit
Safe
Reliable
Economical
Convenient
Unit 14

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