Guide for Organizational Representative Payees

Who Needs a Representative Payee?

SSA assumes adult beneficiaries are capable of managing their money unless there is evidence to the contrary. SSA appoints a payee when a beneficiary is determined incapable of managing or directing someone else to manage their Social Security and/or SSI payments. Having a payee is not an option or a choice.

Beneficiaries who are unable to manage or direct the management of their money need a payee. These beneficiaries fall into three basic categories:

• minor children (children under age 15 are required to have a payee; children ages 15-17 generally have a payee);

• legally incompetent adults (if your organization is the legal guardian for a beneficiary, you will need to submit a copy of the court appointment to SSA); and

• beneficiaries determined by SSA to be incapable of handling their money.

If you have a beneficiary in your care who is receiving Social Security, and/or SSI payments who loses the ability to manage money, you should promptly report this to SSA. When this occurs, SSA will obtain evidence to determine if the beneficiary is capable of managing his or her payments. SSA will also interview the beneficiary. If SSA determines that the beneficiary is incapable, a payee will be needed and your organization may apply to be the payee.

Likewise, if you are a payee for someone who is showing signs of improvement, and you think they may be able to manage their own money, report this to SSA. We will schedule an interview with the beneficiary to determine whether he or she is now capable of handling his or her own money.

Special Needs of Beneficiaries with a Drug Addiction or Alcohol Condition (DAA)

Disabled adults who SSA determines to be incapable and to have a DAA condition must have a payee. Organizations and agencies are preferred payees for these beneficiaries because they may already serve the mentally ill the substance abusing and the homeless populations. These organizations and agencies are usually aware of the special needs of these individuals and SSA’s policies and how financial resources can help to meet these needs. SSA and many local organizations and agencies have established mutually beneficial working relationships to help these beneficiaries.

NOTE: If a disabled adult has a DAA condition, but SSA determines that they are capable of handling their own funds, then direct payment will be made and a payee will not be appointed.