The payee preference list, provided in GN 00502.105A, is a developmental guide designed to help you identify the best potential payee. An agency that has been appointed legal guardian for the child by the court has a much higher standing on the payee preference list than an agency that has not been appointed legal guardian because the relationship between a court appointed legal guardian and child is stronger than merely a custodial relationship. These preferences are flexible. Each payee selection is an individualized decision, and there may be instances when selecting a payee lower on the preference list might be preferable to selecting a foster care agency, even when the foster care agency is the legal guardian.

In the case of a parent who is barred from having contact with the child or has had parental rights terminated, do not consider the parent higher than the foster care agency on the preference list. The court decision barring the parent’s contact with the child or terminating parental rights indicates that the parent would NOT better serve the interest of the child and the parent should not be considered a potential payee.

When a child is removed from custody of their parents or other caretaker and the court places the child in the custody of a foster care agency, that agency has legal custody of the child. If the foster care agency places the child into a foster care or group living household, the foster care agency retains legal custody of the child, even though the foster care agency does not have actual physical custody of the child.

While a child might be placed in foster care under a court order, the order does not necessarily make the foster care agency the legal guardian of a child in foster care. The court must specifically name the foster care agency as the legal guardian. You must carefully review the court documents to determine the legal relationship between the child and the foster care agency.

Remember, even when the foster care agency is the legal guardian, you are not required to appoint the legal guardian as the payee (GN 00502.139). Appoint the applicant who will best serve the beneficiary.

Reminder: Faxed, mailed, or dropped-off Form SSA-11-BKs (Request to be Selected as Payee) require field office (FO) action. You must follow up with a face-to-face interview unless the payee applicant meets one of the exceptions listed in GN 00502.113B.

It is a legal requirement that we provide advance notice about the payee appointment to the proper person(s). The parent(s) (or legal guardian) of a child in foster care must be provided advance notice of the appointment unless their parental rights were terminated by a court. In certain situations, eRPS cannot detect that advance notice is needed; therefore, you must prepare a manual notice using the Document Processing System (DPS) (see GN 00503.100E.2.).

When you develop a payee application for a child in foster care, exercise caution and follow proper procedures to ensure we appoint the best payee available and provide required due process. Do not automatically appoint the foster care agency as payee for a child in foster care. Gather all pertinent information and make a thoughtful and careful choice and decide each case on its own merit. Use the Rep Payee/Bene Relationship "Note Type" on the Make Note screen to document (MS 07415.002) in eRPS the following information:

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  Why was the child placed in foster care?

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  Has the court given the foster care agency legal custody?

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  Has a court appointed the foster care agency legal guardian?

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  Does the child have a living parent? If so, have parental rights been terminated?

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  Are there other family members who provide support and show concern for the child?

If there is a person higher than the foster care agency on the payee preference list, contact that person and document the reason they are or are not interested in filing as payee before appointing the foster care agency. However, do NOT contact a parent who the court has barred from having contact with the child or who has had parental rights terminated. Review the court document to determine whether the parent is barred from having contact with the child or has had parental rights terminated.

Consider whether, in the absence of a parent, other concerned relatives are a possibility.

Document eRPS per GN 00502.185 why you selected a payee who is not the highest on the payee preference list of possible choices.

Follow the instructions in GN 00504.100B.6. when the child has been placed in foster care. Contact the current payee if appropriate. Develop and document all the facts of the case before you select a new payee or retain the current payee.

SSA is required by law to maintain the current residence address of our beneficiaries even when the foster care agency has legal custody of the child. When completing the Custodian screen (MS 07409.006), answer the “Do you have physical custody?” question “NO” and record the actual residence address of the child on the Claimant/Beneficiary address screen (MS 07409.015) . Remind the payee applicant they must notify SSA and provide us the new resident address each time the child moves. Enter the residence address in eRPS and if a Supplemental Security Income case, update the living arrangement and residence address on the Supplemental Security Income Record (SSR). (See GN 00501.010B.9. for custody definitions.)

If the payee applicant is unable or unwilling to provide the current residential address of the child in foster care, evaluate suitability of the applicant.

If there is an allegation of guardianship, obtain a certified copy of the court order/appointment. Use the Rep Payee/Bene Relationship “Note Type” on the Make Note screen (MS 07415.002) to document pertinent information contained in the court documents as shown in the example below:

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  On January 3, 2023, I reviewed the court order giving the Department of Social Services legal guardianship of John Brown. It was issued by the (name of court) on MMDDYY. It stated John was removed from their parents due to continued abuse and that parental rights have been terminated.

After documenting eRPS with the guardianship information, scan and retain the court order through NDRED using the EP or through eDIB using eView per GN 00502.300.

CAUTION: Only record information on the payee applicant "Note Type" on the Make Note screen that is specific to the representative payee applicant. Otherwise, the information may not be retrievable if there is a payee change.

During the payee interview, ensure that the foster care agency answers all pertinent questions during the payee application process via eRPS. You must ask the payee applicant whether the child has a living parent or other interested family member. If they answer “no” (or they do not know) to the parent question, review all court documents obtained, the Master Beneficiary Record (MBR)/SSR, case file. and the Other People screen (MS 07409.019) in eRPS, if available, to determine if we have any record of a parent or other family member. Any of these sources may provide potential payee leads. Pursue payee leads as appropriate to identify the most suitable payee. The foster care agency should not be automatically selected.

When interviewing the representative of the foster care agency, take the time to fully discuss their payee responsibilities (GN 00502.114) including:

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  meeting with the beneficiary on a regular basis to ascertain their current and foreseeable needs;

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  using and saving the money for the child’s benefit;

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  filing annual accounting reports;

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  reporting changes (including adoptions and custody changes) which affect the beneficiary's eligibility and benefit amount;

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  record keeping; and

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  returning conserved funds.

Do not assume the parent is “not qualified” just because the child has been placed in foster care. Consider the parent’s continued interest in the child and the probability the child will return to the parent’s custody.

When a child is placed voluntarily under the supervision of a foster care agency, it may be in the child’s best interest to appoint the parent as payee. Consider the importance of maintaining the family ties between the parent and child if the parent expects to regain custody of the child soon. Corroborate the parent’s concern with the foster care agency. If you select the parent as payee, follow-up on the appointment after three months as instructed in GN 00504.185 to ensure that the parent is using benefits properly.

When the foster parent of a child who has been placed in the custody of a foster care agency files to be payee, check with the foster care agency to determine if the foster care agency intends to file as payee.

For all payee applications, you must document your payee selection or non-selection determination per GN 00502.185. This includes, when applicable, an explanation of why an applicant lower on the preference list is the most suitable payee.

The parent must be provided with advance notice of the payee appointment unless parental rights have been terminated. Per GN 00503.100, use good judgment in determining whether a parent(s) should receive an advance notice. Do not assume that the parent(s) has no rights because the child is in foster care. Review the court orders and, if needed, contact the court that issued the order to determine if the parent(s) have had their parental rights terminated. If parental rights have been terminated, document the file on the Rep Payee/Bene Relationship "Note Type" and do not send the parent(s) advance notice of the payee appointment. (See GN 00503.100E.2.)

Advise the foster care agency to notify SSA if the child is adopted and have them provide the name and address of the adoptive parent so SSA can secure a payee application. If the foster care agency refuses to provide the information due to privacy concerns, request that the foster care agency notify the adoptive parent that SSA benefits are available to the child and to contact SSA. Refer to GN 00504.220 for other adoption considerations.

A minor child is temporarily removed from their parent's home due to the child's repeated delinquent behavior and is placed with the local social agency. The social agency files an application to become payee and states the following: they have temporary custody, they have not been appointed legal guardian, the parent remains in contact with the child and continues to show strong support and interest. When you contact the parent (as required in GN 00504.100B.1.), they indicate that they want to remain payee and plan to use the benefits for the child's current needs and save a portion of the money for the child's eventual release back to them. The technician decides that the parent should remain payee because they observe that the parent shows strong concern and will serve the best interests of the child. The decision to deny the social agency's request to be payee is further supported by the payee preference list, which indicates that under normal circumstances a parent without custody who shows strong concern is higher on the list than a social agency that is not a legal guardian. The technician denies the payee application of the social agency and documents the payee non-selection determination per GN 00502.185.

A minor child is removed from their parents' home because the parents have been declared unfit. The child is placed with the local social agency that files an application to become payee. The social agency states they are not the legal guardian and that there are no other interested parties. Subsequently, the child's maternal grandparent visits the FO and files a request to be the child's payee. They state that while they do not have custody, they would use the money for the child's current needs and save the balance for the child's education. In addition, the grandparent states that they visit the child on a regular basis. The FO re-contacts the social agency and confirms that the grandparent does visit and that they show strong concern for the child. After carefully considering all the facts in the case, the technician believes the grandparent would better serve the interests of the child and appoints them as payee. The technician documents the payee selection (for the grandparent) and non-selection (for the foster care agency) determinations per GN 00502.185.

A minor child is removed from their parents' home and placed with a social agency. The social agency files to be payee and states they are not legal guardian but have custody of the child and that there are no other interested individuals. When the FO contacts the current payee, who is the parent, they state they want to remain payee and will save the money for the child. When the FO re-contacts the social agency, they indicate the parent has rarely seen the child since their placement with them and that they are anticipating a long-term placement with a foster care parent. The technician is convinced that the social agency's appointment would be in the best interests of the child and decides to make the payee change and documents the payee selection determination per GN 00502.185. Since the parents maintain parental rights, they must be provided with advance notice. (Since the social agency is not the legal guardian, eRPS releases the advance notice.)

A social agency is serving as payee for a minor child who was removed from their parents’ home. The social agency contacts the FO to explain that it has established a reunification plan to facilitate the child’s return to their parents, and there is an expected reunification date. In addition to the child’s other needs, the social agency may determine that it is in the child’s best interests to use a portion of the benefits to maintain the parents’ home in anticipation of the child’s return. Once reunification occurs and the child is back in the parents’ home, consider whether the child’s parent should become the payee.