Effective Dates: 8/08/2024 - Present

Identification Number:
GN 00502 TN 93
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Determining the Need for, Developing and Selecting a Representative Payee
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 005 – Selection of Representative Payee

Subchapter 02 – Determining the Need for, Developing and Selecting a Representative Payee

Transmittal No. 93, 08/08/2024

Audience

PSC: CA, CCRE, CS, ICDS, IES, ISRA, NPR, RECONR, SCPS, TSA, TST;
OCO-OEIO: BTE, CCRE, CR, CTE, FCR, PETL, RECONR;
OCO-ODO: BTE, CCE, CR, CST, CTE, CTE TE, DSE, LCC, PETE, PETL, RECONE;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

This transmittal is updating instructions to add specificity to assist field office staff with considering suitability criteria when evaluating payee applicants. We are making these updates in accordance with the Government Accountability Office recommendation from its report, SSA Needs to Improve Oversight of Organizations that Manage Money for Vulnerable Beneficiaries.

Summary of Changes

GN 00502.130 Factors to Consider in Evaluating Payee Applicants

This section is updating policy to:

  • •

    ·revise language in subsection A to further align with the language in GN 00502.001C;

  • •

    provide additional factors to consider when evaluating payee applicants in subsection B.1;

  • •

    provide additional factors to consider in subsection B.2. if applicants seem equally qualified; and

  • •

    clarify subsection B.3. when a payee applicant is an organization.

GN 00502.130 Factors to Consider in Evaluating Payee Applicants

A. Policy

When you determine a beneficiary is incapable or direct payment is prohibited (GN 00502.001C), you must identify and appoint a suitable representative payee that will best serve the interests of the beneficiary. (See GN 03980.070 when the payee applicant is an SSA employee.)

B. Procedure

1. What Factors Should I Consider When Evaluating Payee Applicants?

There are many factors to consider when you evaluate payee applicants including, but not limited to, the following:

  • •

    Does the payee applicant show concern for the beneficiary's well-being?

  • •

    Does the payee applicant appear able to handle their own affairs?

    NOTE: 

    NEVER APPOINT SOMEONE AS PAYEE IF THEY HAVE A PAYEE.

  • •

    Does the payee applicant have their own income? If not, how are they paying their own expenses?

  • •

    Is the payee applicant knowledgeable about the beneficiary's current and foreseeable needs?

  • •

    Does the payee applicant appear to have the beneficiary's best interests at heart and seem able to exercise good judgment?

  • •

    Does the payee applicant currently serve other beneficiaries? If yes, are there any concerns with their performance?

  • •

    Does the payee applicant have custody of or live near the beneficiary?

  • •

    Is there a family relationship between the payee applicant and the beneficiary?

  • •

    Is there a creditor relationship between the payee applicant and the beneficiary? (GN 00502.135)

  • •

    Is there a legal relationship between the payee applicant and the beneficiary? A beneficiary's legal guardian must receive notice of any action affecting the beneficiary. However, the guardian may not always be the best payee candidate. A legal guardian's suitability to act as payee should be evaluated just as any other candidate's suitability is evaluated. (GN 00502.139)

  • •

    Do questionable or disqualifying factors exist? (Has this payee applicant been convicted of a felony or barred crime (GN 00502.132A and GN 00502.133), or has misuse been proven and the applicant was not retained as payee (GN 00604.045)?). Review the electronic Representative Payee System (eRPS) to determine if there is an existing misuse allegation and/or OIG fraud indicator (GN 00504.102).

  • •

    Does the payee applicant understand and agree to receive benefits on behalf of the beneficiary and use or conserve the benefits in the beneficiary's best interest?

  • •

    Does the payee applicant understand payee duties and is willing to carry out the responsibilities of a payee? (GN 00502.114)

  • •

    Does the payee applicant understand the liability for not reporting changes promptly to SSA (i.e. overpayments)?

NOTE: 

When information is available which shows that the payee applicant (who is a parent with custody) suffers from a substance abuse condition but is not receiving disability benefits, develop to determine whether the child will remain in the parent's custody or be placed in foster care. Investigate the custody issue fully with the Department of Social Services to ensure that the child's rights are protected before making a determination on whether to appoint the parent.

REMINDER: Be alert to situations that may indicate any type of fraudulent activity.

2. What if Two Applicants Seem Equally Qualified?

If, after considering all the above factors, two payee applicants seem equally qualified, consider the following in making your final decision on the representative payee appointment:

  • •

    Does the payee applicant have a history of providing good service?

  • •

    Is the payee applicant currently serving other beneficiaries?

  • •

    Is this payee applicant eager to serve?

  • •

    Does the beneficiary prefer one payee applicant over the other?

REMEMBER: Before appointing a successor payee, contact the current payee for their views, unless the current payee is no longer qualified (see GN 00504.100B.1.).

3. What if the Applicant is an Organization?

Organizational payees usually have access to greater resources and community contacts. In addition to all the factors listed above in evaluating a payee applicant, the following are some additional factors to weigh if considering an organization. When considering an organization as payee or evaluating the continued suitability of an organizational payee, pay attention to information that may indicate that:

a. The organization demonstrates effective internal communication

Different staff within some organizations may provide various services to the beneficiary, such as financial management services, case management, or medical care. Payees are responsible for knowing the beneficiary's needs and managing the Social Security and Supplemental Security Income funds to meet their needs (see GN 00502.114). However, other services, such as case management or medical care interactions, may also provide valuable information about the beneficiary's needs. It is important for organizations to have good communication between various staff that service the beneficiary.

b. The organization has a stable presence in the community

There should be no indications that the organization will likely go out of business or cease providing services to the beneficiary's community in the foreseeable future.

If the organization is a fee-for-service, review community-based requirements in GN 00506.100.

c. The organization demonstrates sound financial management policies

The beneficiary's funds should be secure with the organization. The organization should have adequate record keeping systems to ensure that the beneficiary's needs are met, and benefits are properly administered. There should be adequate controls for safeguarding the beneficiary's funds and information, including properly titled accounts (see GN 00603.010 and GN 00603.020). Federal law mandates that most Federal benefit payments, including Social Security and Supplemental Security Income benefits, must be made electronically.

If the organization is currently serving as a payee, you may assume that it demonstrates sound financial management policies, unless there are indications to the contrary, such as a media report that the organization has filed for bankruptcy or open deficiencies from a Protection and Advocacy review.

d. The organization has adequate staff and resources

The organization must have adequate staff and resources to perform the payee duties and responsibilities for all the beneficiaries it serves. Consider whether the organization has the knowledge and experience to be an effective payee for additional beneficiaries. The organization should have capacity to adapt if key staff become unable to perform their responsibilities.


GN 00502 TN 93 - Determining the Need for, Developing and Selecting a Representative Payee - 8/08/2024