Social Security: LPPT-0701

8/14/2019 Social Security: LPPT-0701

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Why is this issue

important?• In recent years,SSA’s representativepayment program

has receivedattention from:

– Congress

– the Federal Courts – the media

– advocacy groups



Reference Materials

Social SecurityProgram:

• Understanding theBenefits Pub No. 05-

10024

• Retirement BenefitsPub No. 05-10035

• Disability BenefitsPub No. 05-10029

• Survivors BenefitsPub No. 05-10084

• Working WhileDisabled…How WeCan Help

Pub No. 05-10095• Basic Facts

Pub No. 5-10080



Reference Materials

RepresentativePayment Program:. A Guide for

Representative Payees

Pub No. 05-10076. What You Should Know

When A PayeeManages Your Money

Pub No. 05-10097

. Guide for OrganizationalPayees

Pub No. 17-013

Supplemental SecurityIncome Program:•A Guide to SSI for Groupsand Organizations

Pub No. 05-11015•What You Need to KnowWhen You Get SSIPub No. 05-11011•Understanding

Supplemental SecurityIncome

Pub No. 17-008



Unit 1



Unit 1

Two major benefit programs

1.Retirement, Survivors &Disability Insurance

(RSDI)

• Social insurance program

• Protects workers & their familiesfrom loss of earnings due to:retirement, death, or disability



Unit 1

Two major benefit

programs:2.Supplemental SecurityIncome

• Federal income maintenance

program

• Provides cash assistance for:

aged, blind, or disabled

people with little or noincome or resources



Unit 2



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 legallyincompetent beneficiary.



Unit 2

Who needs a representative

payee?• Children under age 18

• Beneficiaries determinedlegally incompetent

•Beneficiaries determinedby SSA to be incapableof handling their money



Unit 2

• For Social Security, having power-of-

attorney or a joint bank accounting

with the beneficiary is NOT the samething as being a representative payee.

• Being a Social Security representative

payee does not entitle an individual tomanage any funds that aren’t Social

Security or SSI payments.

Power-of-Attorney



Unit 3



Unit 3

Applying to be a

representative payee• Contact your local Social

Security office

• Face-to-face interview

– Documented proof of identity

– Current mailing & locationaddress

– 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

payeeSocial 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 4



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 5



Unit 5

Any changes in the life of a beneficiary that couldchange 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’scompensation

•Discharged from the hospital

•Household changes

•Leaves the United States

•Admitted to a hospital•Income changes

•Resources change



Unit 5

For children receiving SSI...

• You may be required to

obtain treatment for the

child’s disabling

condition when medicallynecessary.



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 bereturned

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 6



Unit 6

How to spend a beneficiary’s

money• As a representative payee, you have theresponsibility 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• Nursing Homes

Set aside at least $30 a month

for the beneficiary’s personal

needs or for savings on

his or her behalf .

• InstitutionsFor 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 debtsunless 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

• Your first priority is to

meet the beneficiary’scurrent needs for:

– Food

– Housing

– Medical Care

– Other items for personal

comfort

•Large sums of money

must be used in the

best interest of the

beneficiary.



Unit 6

Handling large sums of

moneyIf there’s money left over after basic needsare 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 $3,000Note: Not all resources count toward these limits; check with your

local Social Security Office for additional information.



Unit 7



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, andmakes a misuse determination.



Unit 7

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 8



Unit 8

Titling for checking and

savings accounts• Checking and savings account titlesmust show the beneficiary as theowner and that the payee has only a

fiduciary (and not personal) interestin 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 9



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 collectiveaccount:

“Sunnydale Nursing Home, representative payee for Social Security beneficiaries”

or “Sunnydale Patient’s Fund for Social Security beneficiaries”



Unit 10



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 18who:

– Receive SSI due to disability or blindness – Have a representative payee

– Are due past monthly SSI payments



Unit 11



Unit 11

These documents should be kept for a minimum of 2 years.

•What records shouldan organizationkeep?

– Bank statements,

– Invoices,

– Receipts,

– Leases



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 eachbeneficiary.



Unit 12

Monitoring organizational

payees• Meet to discuss your practices

• Review financial records

• Speak with beneficiaries



Unit 13



Unit 13

Fee-for-Service

• Organizations authorized to collect a fee froma beneficiary’s Social Security or SSIpayment.

• 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 isthe 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


payees

• Review triennially via:

– Face-to-face meeting

– Examination of a sample of beneficiary records

• Review organization’s record keeping



Unit 13


payees

• Verify expenses with the beneficiary’s service

providers

• Speak with the beneficiaries



Unit 14



Unit 14

Direct deposit

• Safe

• Reliable• Economical

• Convenient



Need more information?

• 1-800-772-1213

• http://www.ssa.gov

• http://www.ssa/gov/payee

Thank you for working with us!

Social Security: LPPT-0701

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Transcript of Social Security: LPPT-0701