TN 70 (05-23)

GN 00605.066 How To Evaluate Payee Responses

A. Introduction

It is important that SSA monitor representative payment situations to ensure that the appointed payee continues to be the preferred payee.

The factors that are considered when evaluating payee applicants for selection are equally important for the duration of the representative payment relationship. (See GN 00502.130 for a list of factors to consider in evaluating payee applicants.)

B. Definitions

These definitions apply for payee accounting purposes.

1. Custody

Custody means “living with.” Custody does not mean guardianship or legal custody awarded by a court.

EXCEPTION: A social agency payee with legal custody retains custody even if the beneficiary is placed in a foster home.

2. Conduit Payee

A conduit payee is one who turns over the full amount of benefits to the beneficiary or to another person without giving any direction or instruction about how to use the funds.

C. Exhibits

1. SSA-623-OCR-SM Questions 1-2

Questions 1-2, SSA-623-OCR-SM (09/2001)

Questions 1-2, SSA-623-OCR-SM (09/2001)

2. SSA-6230-OCR-SM Questions 1-2

Questions 1-2, SSA-6230-OCR-SM (09/2001)

Questions 1-2, SSA-6230-OCR-SM (09/2001)

D. Procedure

NOTE: Unacceptable payee responses may indicate that a change of payee or direct payment is in order.

Use the following instructions and decision factors to determine whether the FO should conduct face-to-face interviews and complete a Representative Payee Evaluation Report, SSA-624-F5 (see GN 00605.100).

1. Question 1 - Payee Felony Conviction

Decision Factor: Felony conviction strongly indicates that an individual is not suitable to act as payee.

Develop according to GN 00502.133 if the payee states that they have been convicted of a felony. Annotate the RPS with information regarding the felony conviction (see MS 07420.001 and MS 07410.002).

2. Question 2 - Custody of the Beneficiary

Decision Factors: A change of custody may indicate that the payee is no longer in the best position to know the beneficiary's needs and/or manage the benefits.

  1. a. 

    Consider changing the payee if custody changed to another individual or institution.

  2. b. 

    Consider making direct payment if the beneficiary is living alone or being discharged from an institution.

  3. c. 

    Update the SSR and RPS with the latest beneficiary residence address and review and update payee coding on the MBR/SSR/RPS as appropriate.

    NOTE: The beneficiary's SSN (see GN 00605.061C) is computer printed in the top portion on the SSA-623-OCR-SM and SSA-6230-OCR-SM to assist the PCs in querying the RPS. PC technicians review the RPS (and SSR) beneficiary residence address to determine if the custody change was reported (i.e., the FO considered the need for a payee change when the custody change was input), or FO development is required. Payee coding on the MBR/SSR/RPS is also reviewed and corrected as appropriate.

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GN 00605.066 - How To Evaluate Payee Responses - 05/26/2023
Batch run: 05/26/2023