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1 Introduction: The Representative Payee Program
Pages 15-27

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From page 15...
... Currently, there are about 5.3 million representative payees serving more than 7 million beneficiaries. SSA tries to select as a representative payee someone who wishes to help the beneficiary, and someone who can see the beneficiary often and who knows his or her needs.
From page 16...
... . Section 107 of the law requires the commissioner of Social Security to conduct a one-time survey to determine how payments to individual and organizational representative payees are being managed and used on behalf of the beneficiaries.
From page 17...
... for fiscal year 2004, up to $8,500,000 is authorized and appropriated and shall be used by the Commissioner of Social Security under this subsection for purposes of conducting a statistically valid survey to determine how payments made to individuals, orga nizations, and State or local government agencies that are representative payees for benefits paid under title II or XVI are being managed and used on behalf of the beneficiaries for whom such benefits are paid.
From page 18...
... . To specifically study the issue of misuse, the committee worked with a forensic auditor and Westat to develop a reinterview process of a small number of select respondents from the original survey of representative payees.
From page 19...
... As with any study of a program of this magnitude, the committee's conclusions and recommendations should be understood in the context of some deficits in practical information, such as accurate and timely names and addresses of payees, the inherent missing or errant data in huge administrative files, and the qualitative nature of interviewing SSA staff. PROGRAM OvERvIEW The Social Security Act Amendments of 1939 (ch.
From page 20...
... Type of Representative Payee Number Percent Spouse 256,902 3.6 Parent 4,528,668 63.7 Adult child 300,737 4.2 Other relative 944,100 13.3 Institution 562,210 7.9 Agency/financial organization 250,694 3.5 Other 264,876 3.7 Total 7,108,187 100.0 SOURCE: Data from Social Security Administration Representative Payee Program staff.
From page 21...
... Of those, about 75 percent receive OASDI ben TABLE 1-3 Number and Percent of Beneficiaries by Representative Payee Type Receiving OASDI, SSI, or Both (December 2005) Payee Type Type of Benefit Number Percent Spouse OASDI only 197,500 76.9 SSI only 44,212 17.2 Both OASDI/SSI 15,190 5.9 Parent OASDI only 3,063,310 67.7 SSI only 1,228,745 27.1 Both OASDI/SSI 236,613 5.2 Adult child OASDI only 204,390 68.0 SSI only 63,451 21.1 Both OASDI/SSI 32,896 10.9 Other relative OASDI only 492,940 52.2 SSI only 335,780 35.6 Both OASDI/SSI 115,380 12.2 Institution OASDI only 358,620 63.8 SSI only 135,305 24.1 Both OASDI/SSI 68,285 12.1 Agency/financial organization OASDI only 105,680 42.2 SSI only 91,973 36.7 Both OASDI/SSI 53,041 21.2 Other OASDI only 114,410 43.2 SSI only 107,532 40.6 Both OASDI/SSI 42,934 16.2 Total OASDI only 4,536,850 63.8 SSI only 2,006,998 28.2 Both OASDI/SSI 564,339 7.9 SOURCE: Data from Social Security Administration Representative Payee Program staff.
From page 22...
... The payee selection process is initiated by written application generated by family members, Disability Determination Services,2 the courts, or other concerned individuals who perceive the need for a payee or directly by SSA field staff (typically claims representatives) when the agency has 2Most disability claims are initially processed through a network of local SSA field offices and state agencies (usually called Disability Determination Services or DDSs)
From page 23...
... Organizational payees may be various types of community-based organizations, institutions, government agencies, and financial organizations. Examples of organizational payees include Department of Veterans Affairs hospitals, state psychiatric institutions, foster homes, and community social service groups.
From page 24...
... The required duties of representative payees are to • determine the beneficiary's needs and use his or her payments to meet those needs; • save any money left after meeting the beneficiary's current needs in an interest bearing account or savings bonds for the beneficiary's future needs; • report to SSA any changes or events which could affect the bene ficiary's eligibility for benefits or payment amount (such as time in prison, earning of significant wages, etc.) ; • keep records of all payments received and how they are spent and/ or saved; • provide benefit information to social service agencies or medical facilities that serve the beneficiary; • help the beneficiary obtain medical treatment when necessary; • notify SSA of any changes in the payee's circumstances that would affect his or her performance or continuing as payee; • complete and submit required written reports accounting for the use of funds; and • return to SSA any payments to which the beneficiary is not entitled (such as payments made while beneficiary was in prison, death of the beneficiary, etc.)
From page 25...
... According to the survey and site visits, after a payee starts managing the Social Security funds of a beneficiary, there is little in the way of continuing, proactive support by SSA for the payee. Most payees have very little, if any, subsequent contact with SSA about their duties and responsibilities.
From page 26...
... Approximately one-twelfth of the representative payees are mailed an accounting form each month from SSA's Wilkes-Barre, PA, Data Operations Center. There are three main questions regarding how funds were saved or spent on food, housing, education, clothing, etc.
From page 27...
... Representative payee policies and practices are oriented towards careful selection and monitoring of representative payees as effective ways to assure that the best interests of the beneficiaries are being served. In a program that involves over 5.3 million representative payees, more than 7 million beneficiaries, and almost $4 billion in monthly benefit payments, the selection and monitoring of the representative payees is a daunting task.


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