A beneficiary's conserved funds (savings/checking accounts, bonds, etc.) cannot be
used to collect fees.
Benefits left over from the prior month will be considered conserved funds if they
are deposited or left in the bank account. Conserved funds transferred to SSA from
a prior payee and reissued to the beneficiary cannot be used to collect fees for service.
The payee can collect the fee anytime during the current month, before the next month’s
check arrives. From the moment the next recurring benefit check is received, the payee
cannot collect fees from the prior month’s check. If the recurring benefits are direct
deposited, the date the new electronic fund transfer is posted to the account will
be the cut off date for collection of the past month’s fee.
It is important that the beneficiary and the FFS payee discuss a monthly budget in
advance to ensure a better administration and fee collection schedule.