The Social Security administration (after a careful investigation) will appoint a relative, friend or other interested party to serve as the “Representative Payee (Rep Payee)”, for the payment and management of benefit payments. In agreeing to serve, the Representative Payee, takes on the full responsibility for the account.

• We do need to pull Credit & ChexSystems on the Rep Payee

Each year, Social Security will ask the Rep Payee to complete a form to account for the benefits received. Our bill pay program and the reports available through it are a great way to categorize various expenses. The Representative Payee is also required to tell Social Security about changes that may affect the beneficiary’s eligibility. Remember, the law requires representative payees to use the benefits properly however it is not our job as credit union staff to police these accounts.

A payee is appointed to manage Social Security funds only. A payee has no legal authority to manage non-Social Security income or ­medical matters. In addition, the beneficiary can not access funds in the account. If the representative payee wishes to provide access to funds it must be done by transferring to a separate account with appropriate ownership.

• The member may never have direct access to the account i.e. balance information, withdrawals, deposits, history printouts
• The account is for Social Security Benefits only. No deposits other than those for Social Security
• If the Member and Rep Payee are both present the Rep Payee is still the only person who may sign for transactions

Family members often use a “power of attorney” as another way to handle a family member’s finances. For Social Security purposes, a “power of attorney” is not an acceptable way to manage a ­person’s monthly benefits. Social Security recognizes only a representative payee for handling the beneficiary’s funds. 

According to the SSA any money left after meeting the beneficiary’s day-to-day and personal needs, must be saved. It is not our responsibility as credit union staff to police these accounts. Thus we should never get invovled in any conversations about what the funds are to be used for.

• We never ask what the funds are being used for

To protect the beneficiary’s funds, the checking or savings accounts title must reflect the beneficiary’s ownership of the funds and the representative payee relationship as a fiduciary (financial agent). Neither the representative payee nor any other third party can have ownership interest in the account. The beneficiary must never have direct access to the account.

• Accounts should have the Rep Payee as Custodian (see example)

• Account should have Flags stating The member is not allowed to withdrawal funds. Only the Rep Payee “____________” is allowed account access

Example:

MBR MAY NOT WD FUNDS! ONLY REP PAYEE STEPHANIE BLANCHARD IS ALLWD ACCT ACCSS

• Accounts should not have the Rep Payee as Joint (please change any existing Rep Payee from Joint to Custodian.)

• Since accounts are setup with the Rep Payee as Custodian there should not be Flags stating that “_________________” is not Joint but a Rep Payee

Example:

In Summary

• The Member has no access to the account
• The Rep Payee is the Custodian of the account
• Only Social Security Monies may be deposited
• Flags need to state the Member has no access to the account
• Flags need to state Only the Rep Payee may access the account
• Credit and ChexSystems needs to be pulled on the Custodian