Upload
social-security
View
224
Download
0
Embed Size (px)
Citation preview
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 1/61
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 2/61
Why is this issue
important?• In recent years,SSA’s representativepayment program
has receivedattention from:
– Congress
– the Federal Courts – the media
– advocacy groups
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 3/61
Reference Materials
Social SecurityProgram:
• Understanding theBenefits Pub No. 05-
10024
• Retirement BenefitsPub No. 05-10035
• Disability BenefitsPub No. 05-10029
• Survivors BenefitsPub No. 05-10084
• Working WhileDisabled…How WeCan Help
Pub No. 05-10095• Basic Facts
Pub No. 5-10080
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 4/61
Reference Materials
RepresentativePayment Program:. A Guide for
Representative Payees
Pub No. 05-10076. What You Should Know
When A PayeeManages Your Money
Pub No. 05-10097
. Guide for OrganizationalPayees
Pub No. 17-013
Supplemental SecurityIncome Program:•A Guide to SSI for Groupsand Organizations
Pub No. 05-11015•What You Need to KnowWhen You Get SSIPub No. 05-11011•Understanding
Supplemental SecurityIncome
Pub No. 17-008
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 5/61
Unit 1
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 6/61
Unit 1
Two major benefit programs
1.Retirement, Survivors &Disability Insurance
(RSDI)
• Social insurance program
• Protects workers & their familiesfrom loss of earnings due to:retirement, death, or disability
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 7/61
Unit 1
Two major benefit
programs:2.Supplemental SecurityIncome
• Federal income maintenance
program
• Provides cash assistance for:
aged, blind, or disabled
people with little or noincome or resources
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 8/61
Unit 2
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 9/61
Unit 2
The representative payment
program
Assists most vulnerable members of
society who are: – young, or
– elderly, or
– disabled, and/or
– not capable of managing or directing someone else to
manage their finances.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 10/61
Unit 2
What is a representative
payee?• Person,
• Agency,
• Organization, or
• Institution selected to receive and manage
benefits on behalf of an incapable or legallyincompetent beneficiary.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 11/61
Unit 2
Who needs a representative
payee?• Children under age 18
• Beneficiaries determinedlegally incompetent
•Beneficiaries determinedby SSA to be incapableof handling their money
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 12/61
Unit 2
• For Social Security, having power-of-
attorney or a joint bank accounting
with the beneficiary is NOT the samething as being a representative payee.
• Being a Social Security representative
payee does not entitle an individual tomanage any funds that aren’t Social
Security or SSI payments.
Power-of-Attorney
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 13/61
Unit 3
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 14/61
Unit 3
Applying to be a
representative payee• Contact your local Social
Security office
• Face-to-face interview
– Documented proof of identity
– Current mailing & locationaddress
– Bank account information (for
direct deposit)
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 15/61
Unit 3
How SSA selects a payee
Conduct a face-to-face interview to:
• Determine relationship to the beneficiary,
• Discuss qualifications,• Discuss ability to carry out responsibilities of a rep
payee,
• Explain rep payee duties,• Explain reporting responsibilities, and
• Explain liability for not reporting changes.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 16/61
Unit 3
Requests for a change of
payeeSocial Security will:
• Contact the current payee
for his or her views• Investigate allegations
raised about the current
payee’s suitability to serve
• Send a notice to the
current payee explaining
the change
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 17/61
Unit 4
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 18/61
Unit 4
Duties of an organizational
representative payee
• Use the payments for the beneficiary’s
current needs & save the remainder.
• File accounting report.
• Notify Social Security when the
beneficiary is no longer your responsibility
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 19/61
Unit 4
Duties of an organizational
representative payee• Report all required events
• File an annual report of earnings
• Notify SSA when you can no longer serve as
payee
• Return any conserved funds if you stop being
payee
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 20/61
Unit 4
Other ways to help the
beneficiary• Meet regularly with him/her
• Establish a budget & discuss it with him/her
• Involve him/her in financial decisions
• Explain Social Security and SSI payments
• Explain expenses
• Make him/her aware of large retroactive
payments
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 21/61
Unit 4
Other ways to help the
beneficiary• Help him/her find needed services
• Help him/her fill out applications for needed services• Help him/her get medical treatment, as needed
• Negotiate with landlords & others for best deals
• Help him/her file income tax returns
• Recommend new payee if you cannot continue to
serve
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 22/61
Unit 5
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 23/61
Unit 5
Any changes in the life of a beneficiary that couldchange his or her benefit. For example:
•Death
•Marriage, divorce or annulment
•Change in school attendance
•Change of address/moves
•No longer has a child in care
•Convicted of a crime
•Medical condition improves
•Starts working
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 24/61
Unit 5
•Receives worker’scompensation
•Discharged from the hospital
•Household changes
•Leaves the United States
•Admitted to a hospital•Income changes
•Resources change
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 25/61
Unit 5
For children receiving SSI...
• You may be required to
obtain treatment for the
child’s disabling
condition when medicallynecessary.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 26/61
Unit 5
The death of a beneficiary
Social Security Benefits:• No check is payable for the month of death, even if
death occurs on the last day of the month
• Checks received for month of death or later must bereturned
Supplemental Security Income:
• Check is payable for month of death
• Checks that arrive after month of death must be
returned
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 27/61
Unit 5
An overpayment is any amount of money
received for any period that exceeds the total amount of money that should have been paid.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 28/61
Unit 6
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 29/61
Unit 6
How to spend a beneficiary’s
money• As a representative payee, you have theresponsibility to use benefits received only for
the use & benefit of the beneficiary.
• Current maintenance needs include: – Food
– Clothing
– Medical Care – Housing
– Personal comfort items
– Reasonably foreseeable needs
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 30/61
Unit 6
Beneficiaries in nursing
homes or institutions• Nursing Homes
Set aside at least $30 a month
for the beneficiary’s personal
needs or for savings on
his or her behalf .
• InstitutionsFor Social Security (not SSI), part of the funds can
be used for the support of the beneficiary’s
dependent spouse, child, and/or parent.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 31/61
Unit 6
Outstanding debts
• If current & foreseeable needs are met,
you may use the beneficiary’s funds to
satisfy past debts.
• You are not required to pay past debtsunless it involves:
– Repayment of Social Security or SSI overpayment
– An IRS levy for income tax purposes
– Garnishment (child support & alimony)
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 32/61
Unit 6
Spending large sums of money
• Your first priority is to
meet the beneficiary’scurrent needs for:
– Food
– Housing
– Medical Care
– Other items for personal
comfort
•Large sums of money
must be used in the
best interest of the
beneficiary.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 33/61
Unit 6
Handling large sums of
moneyIf there’s money left over after basic needsare met, money may be spent on:
– Things that improve the beneficiary’s living conditions – Providing better medical care
– Training to help beneficiary become
more self-sufficient
– Major health-related expenses
– Recreational activities
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 34/61
Unit 6
Large purchases
• A representative payee can make some of these
special purchases for comfort of the beneficiary:
– Home
– Home improvements
– Furniture
– Car
Uncertain about an expenditure? Contact your local Social Security Office.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 35/61
Unit 6
$2,000 resource limit for
SSI• Example of “resources”are: – property,
– stocks,
– bonds, or – bank accounts
• For an individual receiving SSI, savings and other resources are limited to $2,000
• For a couple receiving SSI, the limit is $3,000Note: Not all resources count toward these limits; check with your
local Social Security Office for additional information.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 36/61
Unit 7
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 37/61
Unit 7
Improper use of benefits
An unwise expenditure of benefits in a
manner that isn’t in the best interest of
the beneficiary.
• Example: A payee takes the beneficiary to
the circus instead of buying him/her needed
clothes.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 38/61
Unit 7
Misuse of benefits
Occurs when money is not spent on the
beneficiary or saved for future needs
• SSA decides if misuse has occurred, andmakes a misuse determination.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 39/61
Unit 7
Misuse of benefits
If misuse is found, SSA may:
• Appoint a new payee, or
• Make direct payment to the beneficiary, and
• Obtain restitution from the misuser, and
• Refer the case to the OIG for possible criminal
prosecution
SSA will then initiate action to recover misused funds.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 40/61
Unit 8
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 41/61
Unit 8
Titling for checking and
savings accounts• Checking and savings account titlesmust show the beneficiary as theowner and that the payee has only a
fiduciary (and not personal) interestin the funds.
•Two examples of bank account titles:“(Beneficiary’s name) by (your name), representative payee,”
or
“(Your name), representative payee for (beneficiary’s name).”
•The beneficiary retains ownership but not direct access to
the funds.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 42/61
Unit 9
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 43/61
Unit 9
Special rules for collective
accounts• Account separate from organization’s operating account.
• If a fee-for-service payee, deduct your fees & move to
your operating account
• Keep clear records showing amount
of each beneficiary’s share
• If beneficiary has more than $500,
funds should be placed in interest
bearing account.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 44/61
Unit 9
Special rules for collective
accounts (cont’d)• Credit each beneficiary with his/her share of
interest• Set aside $30 per person for personal needs
• Funds belonging to a beneficiary can only be
used for his or her needs
• Have account records available if requested by
SSA
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 45/61
Unit 9
Titles for collective accounts
Examples of recommended titles for a collectiveaccount:
“Sunnydale Nursing Home, representative payee for Social Security beneficiaries”
or “Sunnydale Patient’s Fund for Social Security beneficiaries”
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 46/61
Unit 10
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 47/61
Unit 10
Dedicated accounts
• The law requires representative payees to
maintain a dedicated account at a financial
institution for deposit of past due SSI benefits.
• Dedicated accounts affect children under 18who:
– Receive SSI due to disability or blindness – Have a representative payee
– Are due past monthly SSI payments
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 48/61
Unit 11
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 49/61
Unit 11
These documents should be kept for a minimum of 2 years.
•What records shouldan organizationkeep?
– Bank statements,
– Invoices,
– Receipts,
– Leases
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 50/61
Unit 11
Developing an accounting
system• Must show for each beneficiary:
– how much money was received,and
– how much money was spent, and
– the balance saved for eachbeneficiary.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 51/61
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 52/61
Unit 12
Monitoring organizational
payees• Meet to discuss your practices
• Review financial records
• Speak with beneficiaries
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 53/61
Unit 13
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 54/61
Unit 13
Fee-for-Service
• Organizations authorized to collect a fee froma beneficiary’s Social Security or SSIpayment.
• Fee is intended to cover expenses for providing payee services.
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 55/61
Unit 13
Current fee amounts
• Effective December 2000, the authorized fee
is the lesser of:
– 10% of the monthly benefit amount or $29
• For disabled individuals who have been
determined by SSA as having a drug
addiction or alcoholism problem, the fee isthe lesser of:
– 10% of the monthly benefit amount or $56
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 56/61
Unit 13
Monitoring fee-for-service
payees
• Site visits
• Accounting reports
• Annual certification
• Verification of beneficiaries
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 57/61
Unit 13
Monitoring fee-for-service
payees
• Review triennially via:
– Face-to-face meeting
– Examination of a sample of beneficiary records
• Review organization’s record keeping
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 58/61
Unit 13
Monitoring fee-for-service
payees
• Verify expenses with the beneficiary’s service
providers
• Speak with the beneficiaries
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 59/61
Unit 14
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 60/61
Unit 14
Direct deposit
• Safe
• Reliable• Economical
• Convenient
8/14/2019 Social Security: LPPT-0701
http://slidepdf.com/reader/full/social-security-lppt-0701 61/61
Need more information?
• 1-800-772-1213
• http://www.ssa.gov
• http://www.ssa/gov/payee
Thank you for working with us!