An organizational payee is not allowed to collect past due fees from conserved funds. The FFS payee should collect the monthly fee from the beneficiary’s current check in the month the fee is due. The FFS payee can decide when to collect the fees within that month (for example, the same day the check is received, by mid-month, or afterwards.)

If the payee decides to collect the fee at the end of the current month, the fee must come from the leftover benefits for that month. If there’s not enough the payee may have to forfeit the fee for that month. The payee cannot use the benefits from the following month to make up for uncollected fees.

If the beneficiary is left with very little money after their expenses are paid, the FFS payee has the option (upon request from the beneficiary or on their own initiative) of waiving the fee, partially or totally, for that particular month.

In the event that the beneficiary has an initial award or post-entitlement event where retroactive benefits are due, the payee can collect the fees from the retroactive benefits (See GN 00506.210A.1 ) ONLY if ALL the requirements outlined in GN 00506.130 B.1 are met, AND

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  The FFS organization was the payee of record for each of the retroactive months in question, AND

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  Was authorized to collect fees for the retroactive period as part of the initial FFS determination (In other words, did not apply to become a FFS payee after the retroactive check was issued)

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  Payee services were performed for each retroactive month, AND

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  Benefits were due and payable for each retroactive month.

A beneficiary has had a social service agency, Local Help Inc. as their representative payee since 1995. On January 1, 2002, the payee applies for status as a fee for service organization. SSA approves the request on January 15, 2002. The beneficiary receives their March check on February 28. SSA will consider the payment received in March for the purpose of charging the permitted fees.

A beneficiary moved to a different town and did not notify their payee right away; the payee notified SSA, who suspended payment; when the beneficiary finally told the payee of their move, (due to miscommunication) the payee failed to report the move to SSA.

The agency (SSA) suspended benefits for two months while developing whereabouts unknown. The payee continued to act in that capacity and handle all the affairs of the beneficiary, including paying their rent, utilities, groceries, keeping up with medical appointments, etc. When the payee finally reported the move and the beneficiary’s checks were reinstated, the payee was entitled to collect a fee for the two months in question.