When a former payee returns any conserved funds, we will reissue them to the individual or organization serving as payee at the time of payment or directly to the beneficiary if they no longer needs a payee. The amount of conserved funds will determine whether we release them in a lump sum or installments. For instructions on administering a large amount of conserved funds, see "Payment of Large Retroactive Benefits or Conserved Funds GN 00502.186, Payment of Large Amounts of Accumulated or Conserved Benefits-Title II Only," GN 00603.070, and "Installment Payments of Accumulated or Conserved Funds- Title II Only" GN 00603.085.

On a case-by-case basis, you may approve a former payees request to transfer conserved funds directly to the new payee or to the beneficiary provided:

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  The direct transfer serves the best interest of the beneficiary,

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  We have not replaced the former payee because of misuse of benefits or other evidence of unsuitability, and

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  The former payee agrees to transfer funds within 30 days.

Document your determination in the Representative Payee System (eRPS) using the Make Note screen, MS INTRANETERPS 015.002 and MS INTRANETERPS 015.003D.

Notify the beneficiary or the beneficiary’s new payee of the existence of any conserved funds and that the former payee will send those funds within 30 days.

If the former payee does not know the new payees address, use form SSA-3288, Consent for Release of Information, to obtain the new payees written consent before disclosing their address to the former payee. For additional information, see "Disclosure with Consent-General" GN 03305.001.

If the former payee transferred conserved funds to the beneficiary or to a new payee without consulting SSA, contact the new payee or beneficiary to confirm the amount transferred and document the Make Note screen in eRPS.

Query the eRPS to determine if the former payee is a payee for other beneficiaries. If so, advise the former payee that they must obtain SSA approval prior to transferring conserved funds directly to a new payee or to the beneficiary.

When all reasonable efforts by SSA fail to collect conserved funds held by a former payee, document your efforts on the Make Note screen in eRPS. The former payees failure to return conserved funds to us or to transfer them at our direction to the beneficiary or a successor payee deprives the beneficiary of the use of those funds and warrants an investigation into misuse of benefits. For additional information on misuse of benefits, see "Overview- Misuse of Benefits" GN 00604.001.

If conserved funds are not returned due to death of payee, see "Handling Conserved Funds When Payee's Whereabouts are Unknown or Upon the Death of the Payee" GN 00603.110.

Upon the death of a beneficiary, any returned conserved funds become the property of the beneficiary’s estate, and State law governs the disposition of the beneficiary’s property. Do not return the conserved funds to the former payee.

Contact the former payee to determine the existence of a legal representative. If there is no legal representative, contact the State probate court for instruction on the disposition of the conserved funds.

While conserved funds are not underpayments, follow the legal representative documentation procedures outlined in Legal Representative- Underpaid Person Deceased GN 02301.035. For additional information, see "Entitlement Terminated-Notice to be Given About Conserved Benefits" GN 00603.100.

A parent with custody serves as payee for their child. They reports that the child is capable of managing their money and will be living alone. They visit the field office and the beneficiary applies to be their own payee. The parent wants to give the conserved funds directly to the beneficiary to pay for the deposit on the apartment and for utilities. The beneficiary needs the direct transfer as soon as possible so that he does not lose the apartment to another renter. Direct transfer to the beneficiary may serve the beneficiary’s best interest.

An aged beneficiary has two children. One has served as the payee for two years, but needs to relocate due to a job offer. We selected the other sibling to serve as the new payee. Since the former payee used most of the beneficiary’s monthly benefits to pay for the beneficiary’s stay in assisted living, the new payee believes that it is important that they have access to the conserved funds to help pay for any additional expenses that may arise. Direct transfer to the new payee may serve the beneficiary’s best interest.

Board and Care Home closes. It served as payee for ten beneficiary residents. The beneficiaries relocated to another facility that has just opened. We selected the new facility as payee. The cost of care in the new facility will take most of the beneficiaries monthly benefits, but all of the beneficiaries have accrued some conserved funds in a collective account. The beneficiaries and their new payee state that they will need funds to buy new bed linens, pillows, and blankets for their new rooms. They report that they have been in direct contact with the former payee, who has agreed to turn over the funds directly to the new payee. Direct transfer to the new payee may serve the best interests of these beneficiaries.

A foster care agency serving as payee provides documentation that when a child in foster care attains age 18 and ages out of the foster care system, State law requires the agency to disburse any conserved funds and assets of the child directly to the child to facilitate transition into adult life. Direct transfer may serve the beneficiary’s best interest.

A former payee no longer has custody of a beneficiary and asks to transfer conserved funds directly to the new payee. The FO contacted the new payee for consent to give its address to the former payee. The new payee indicated beneficiary dissatisfaction with the former payees facility and prefers that the former payee not know their whereabouts. The new payee declined to give consent in deference to the beneficiary. Direct transfer would NOT be in the beneficiary’s best interest.

David lives in Idaho and receives Social Security benefits. His sister Sarah serves as his payee, managing his expenses and saving surplus funds in an ABLE account, which has earned some interest. When Sarah needs to move out of state and can no longer serve as payee, David’s cousin Pedro, who lives nearby, applies and is approved by SSA to become the new payee.

Instead of returning the conserved funds to SSA, Sarah asks the field office for permission to transfer the funds directly to Pedro. She explains that, upon SSA’s approval, she would work with the bank to remove her name and add Pedro as the authorized individual with signature authority for the ABLE account. SSA confirms that Pedro agrees with this approach.

SSA reviews the case and approves the direct transfer, determining it is in David’s best interest because:

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  The funds remain in the ABLE account;

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  It avoides re-depositing the funds into the account, which would count against the annual ABLE contribution limit; and

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  Both Sarah and Pedro prefer this method.