Representative payees are required to account annually for the use of benefits and report on the activity of funds in the dedicated account. To avoid payee confusion and the burden of completing two reports, we exclude Supplemental Security Income (SSI) records that contain representative payees with dedicated accounts from the monthly vendor produced annual accounting process. They will not receive a SSA-623-OCR-SM (Representative Payee Report) to complete. Instead, payees receive the monitoring report entitled, Representative Payee Report of Benefits and Dedicated Account, SSA-6233-BK, which contains questions pertaining to annual accounting and dedicated accounts. This section explains the field office (FO) monitoring process.

The law requires that representative payees establish and maintain a separate account in a financial institution (we refer to it as a dedicated account) for certain past-due SSI monthly payments made on or after August 23, 1996 for blind or disabled SSI recipients under age 18. No other funds may be deposited in the account; however, the representative can choose to deposit certain subsequent past-due benefits described in GN 00605.223B.3.

We exclude dedicated accounts from resources. In addition, we exclude any interest or other earnings on the dedicated account from income and resources. The use of funds from the account is restricted to specific purchases. These restrictions continue to apply when the child attains age 18, remains eligible for benefits, and goes into direct payment. Any unauthorized expenditures made knowingly by the payee constitutes “misapplication” of funds and are recoverable by SSA from the representative payee. Unauthorized expenditures made knowingly by an individual who is their own payee will be deducted from future SSI payments. To determine permitted expenditures, follow the guidelines in GN 00602.140, Permitted Expenditures from Dedicated Accounts.

Representative payees and age 18 (or older) recipients with dedicated accounts must report annually on the activity of funds in the account to ensure deposits and expenditures comply with the law. This reporting requirement remains in effect until after the payee, or recipient, if they are their own payee, depletes the account or eligibility for benefits terminates.

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  GN 00602.140, Permitted Expenditures From Dedicated Account

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  GN 00603.025, Dedicated Accounts for Disabled/Blind SSI Recipients Under Age 18

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  GN 00605.070, Reviewing the SSA-623-OCR-SM (08/2007)

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  GN 00605.215, Complete, Mail, and Retain SSA-6233-BK

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  SI 01130.601, Dedicated Accounts for Past-Due Benefits Due to Individuals Under 18 Who Have a Representative Payee

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  SI 02101.010, Past-Due Benefits Payable – Individual Alive Under Age 18 with Representative Payee – Dedicated Account Required

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  GN 00602.150, Misapplication of Funds in a Dedicated Account