Representative Payee Program

The representative payee program team works to ensure that organizational and individual representative payees are not subjecting individuals with disabilities to fiscal mismanagement. Disability Rights Iowa has a grant from the Social Security Administration (SSA) to conduct reviews and educational visits of representative payees to verify that payees are using benefits properly on behalf of beneficiaries and carrying out payee responsibilities and duties correctly. Through this program, DRI has the unique opportunity to identify payees with histories of abuse or neglect of persons in their care through its services, programs and direct contacts with beneficiaries.

A representative payee is a person or an organization. SSA will appoint a payee to receive the Social Security or SSI benefits for anyone who can’t manage or direct the management of his or her benefits. A payee’s main duties are to use the benefits to pay for the current and future needs of the beneficiary, and properly save any benefits not needed to meet current needs. A payee must also keep records of expenses. When SSA requests a report, a payee must provide an accounting to SSA of how he or she used or saved the benefits.

It’s important to know that being an authorized representative, having power of attorney, or a joint bank account with the beneficiary is not the same as being a payee. These arrangements do not give legal authority to negotiate and manage a beneficiary’s Social Security and/or SSI benefits. In order to be a payee, you must apply for and be appointed by Social Security.

Contact the Social Security office nearest you to apply to be a payee. You must complete form SSA-11 (Request to be selected as payee) and show us documents to prove your identity. You will need to provide your social security number, or if you represent an organization, the organization’s employer identification number. Usually, you must complete the payee application with us face-to-face.

There can be many reasons why Social Security decides someone needs a payee. However, it is usually because they have information that indicated you need help in managing your money and meeting your current needs.

Your payee receives your payments on your behalf and must use the money to pay for your current needs, which include

• housing and utilities;
• food;
• medical, rehabilitation and dental expenses;
• personal care items;
• clothing

After those expenses are paid, your payee can use the rest of the money to pay any past-due bills you may have, support your dependents or provide entertainment for you. If there is money left over, your payee should save it for you.

The payee must keep accurate records of your payments and how they are spent and regularly report that information to Social Security. Your payee also should share that information with you.

A payee cannot:

• Sign legal documents, other than Social Security documents, for a beneficiary.
• Have legal authority over earned income, pensions, or any income from sources other than Social Security or SSI.
• Use a beneficiary’s money for the payee’s personal expenses, or spend funds in a way that would leave the beneficiary without necessary items or services (housing, food, medical care).
• Put a beneficiary’s Social Security or SSI funds in the payee’s or another person’s account.
• Use a child’s “dedicated account” funds for basic living expenses. (This only applies to disabled and blind SSI beneficiaries under age 18.)
• Keep conserved funds once you are no longer the payee.
• Charge the beneficiary for services unless authorized by SSA to do so.

SSA tries to select someone who knows you and wants to help you. Their main concern is that your payee is someone who can see you often and knows what you need. For that reason, if you live with someone who helps you, we usually select that person to be your payee. In most cases, someone who knows you asks us if he/she can be your payee. It may be a family member, a friend, a legal guardian or a lawyer. In some cases social service agencies, nursing homes or other organizations offer to serve as payees. If you know someone you would like to have as your payee, tell a Social Security representative and they will consider your wish.

SSA will send you a letter telling you that they have decided to pay your benefits to a payee. If you do not agree that you need a payee, or if you want a different payee, you have 60 days to appeal that decision by sending them a letter.

You should talk with your payee about how he or she spends your money. Your payee should show you how much money you get from Social Security or SSI and how much he or she spends on your needs. Then you should talk with your payee about how you want to use any remaining money.

Tell SSA right away. They will investigate all allegations of misuse, gather facts and evidence, and make a decision on whether misuse has occurred. You will receive a letter from SSA telling you what they found out. If they find misuse, SSA may find a new representative payee for you or pay you directly. They will then take action to recover the misused money.

If you are already receiving Social Security benefits and have a payee, you can ask someone else to be your payee. You should tell your present payee that you plan to ask someone else to help you. The person you want to become your new payee must file an application.

You have the right to receive your own Social Security check unless SSA believes you are not capable of managing or directing the management of your money.

If you have a representative payee because of a physical or a mental disability, in order to become your own payee, you must show SSA that you are now mentally and physically able to handle your money yourself. You could provide:

• A doctor’s statement that there has been a change in your condition and that the doctor believes you are able to care for yourself; or
• An official copy of a court order saying that the court believes that you can take care of yourself; or
• Other evidence that shows your ability to take care yourself.

It is important to know that if SSA believes your condition has improved to the point that you no longer need a payee, they may reevaluate your eligibility for disability payments.