By: Shannon Basile, Director of Compliance
The Social Security Administration (SSA) created the Representative Payment Program to provide benefit payment management for beneficiaries who are not capable of managing their own Supplemental Security Income (SSI) payments. Typically, the SSA will look for family or friends to serve as the beneficiary’s payee. If no family or friends are able to serve as a payee, the SSA will seek a qualified organization. In addition, the SSA allows beneficiaries to designate up to three individuals who could serve as a payee if the need arises. The SSA also encourages anyone who believes a beneficiary may not be able to manage their SSI payments to contact them at 1-800-772-1213.
The named payee is responsible for making sure the beneficiary’s SSI payment is used to meet the beneficiary’s basic needs, and to ensure any remaining funds are saved. The U.S. Treasury Department requires all federal benefit payments to be made using a form of electronic payment. It is recommended that the payee establish a checking or savings account to hold the benefit payments and the funds should not be mixed with the representative payee’s funds or any other funds.
Credit unions often become involved in the SSA Representative Payment Program when a member asks to establish an account for the purpose of receiving and managing a beneficiary’s SSI payments. Before establishing a representative payee account, the credit union should request a copy of the SSA representative payee appointment letter. The deposit account should reflect the beneficiary’s ownership of the funds and also name the designated representative payee as the financial agent. The beneficiary should never have access to the account. The SSA’s Guide for Representative Payees recommends the following account titles:
- (Beneficiary’s name) by (payee’s name), representative payee.
- (Payee’s name), representative payee for (beneficiary’s name).
The representative payee is obligated to contact the SSA regarding any changes that will affect the beneficiary’s benefit eligibility, amount of benefits, or the payee’s ability to serve as payee. It is important to note, an appointment by the SSA naming an individual or organization as a representative payee only allows that individual to manage SSI benefit payments. It does not grant the representative payee the authority to manage the beneficiary’s other funds or other federal benefit payments.
Credit unions play an essential role in the SSA’s Representative Payment Program by allowing payees to establish fiduciary accounts. As a result, SSI beneficiaries unable to manage their own payments, are able to safely receive the funds they depend on to support their daily needs and quality of life.
Click here for more details about the SSA Representative Payment Program, including guides and FAQs.
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