TN 14 (08-23)

GN 00603.130 When Former Payee May Administer Conserved Benefits

A. Policy

A former payee may be permitted to continue administering conserved benefits in exceptional circumstances where the arrangement serves the best interests of the beneficiary. The former payee will have the same responsibilities as the current representative payee for complying with regulations governing use of benefits. If the benefits being held by the former payee are not needed for the current maintenance of the beneficiary, they are to be conserved or invested in accordance with the instructions in this subchapter.

B. Procedure

1. Conditions

The FO may approve the former payee to continue administering the conserved benefits under the following conditions:

  • there is evidence that retention of benefits by the former payee will further the beneficiary's interests, and

  • the former payee has not been replaced because of misuse of benefits or other evidence of unsuitability, and

  • an internal control is established in the FO to annually monitor the conserved funds held by the former payee.

Document the decision to allow the former payee to continue to administer the conserved funds in the Make Note screen in eRPS for both the current and former payees. Include the date of the approval and the amount of the conserved funds.

2. Example

A legal guardian for a disabled beneficiary has conserved funds for the beneficiary in a savings account. Recently, the beneficiary's medical condition required that they receive treatment in a rehabilitation hospital for an indefinite period of time. Shortly after the beneficiary is admitted for treatment, the hospital is temporarily selected as payee. In this case, the legal guardian may be approved to continue administering the conserved funds during the time the beneficiary is hospitalized.

3. Terminating Arrangements

Where evidence shows that the best interests of the beneficiary are no longer served by allowing a former payee to administer conserved benefits, the FO will terminate the arrangement and request that the former payee return the conserved benefits to SSA for recertification to the current payee.

4. Notice To Successor Payee

Notify the successor payee of the existence of the conserved benefits. Advise the former payee to give prompt attention to requests by the successor payee for funds if the beneficiary's current needs cannot be met from available monthly benefits.

5. Former Payee Dies

If the former payee dies, follow procedures in GN 00603.110 -- Handling Conserved Funds When Payee's Whereabouts are Unknown or Upon the Death of the Payee.

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GN 00603.130 - When Former Payee May Administer Conserved Benefits - 08/11/2023
Batch run: 08/11/2023