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Tuesday October 26, 2021

Savvy Living

Savvy Senior

Social Security Program to Help Manage Payments

Does Social Security offer any special help to beneficiaries who struggle managing their benefits? My aunt, who has no children, has dementia and struggles keeping up with her bills and other financial duties.

Social Security has a little-known program, known as the Representative Payee Program, that helps beneficiaries manage their Social Security benefit payments. Here is what you should know.

Representative Payee Program


Authorized by Congress in 1939, the Social Security Representative Payee Program provides money management assistance to beneficiaries who are in need of help managing their Social Security income. Beneficiaries in need of this help are often seniors suffering from dementia or minor children who are collecting Social Security survivors' benefits.

Currently more than 5 million Social Security beneficiaries have representative payees.

Representative payees also handle benefits for nearly 3 million recipients of Supplemental Security Income (SSI), a Social Security administered benefit program for low-income people who are over age 65, blind or disabled.

Who Are Payees?


A representative payee is typically a relative or close friend of the beneficiary needing assistance, but Social Security can also name an organization or institution for the role, such as a nursing home or social-service agency.

Some of the duties of a representative payee include:
  • Using the beneficiary's Social Security or SSI payments to meet their essential needs, such as food, shelter, household bills and medical care. The money can also be used for personal needs like clothing and recreation.
  • Keeping any remaining money from benefit payments in an interest-bearing bank account or savings bonds for the beneficiary's future needs.
  • Keeping records of benefit payments received and how the money was spent or saved.
  • Reporting to Social Security any changes or events that could affect the beneficiary's payments (for example, a move, marriage, divorce or death).
  • Reporting any circumstances that affect the payee's ability to serve in the role.
As a representative payee, you cannot combine the beneficiary's Social Security payments with your own money or use the payments for your own needs. The bank account into which benefits are deposited should be fully owned by the beneficiary, with the payee listed as the financial agent.

Some payees, generally those who do not live with the beneficiary, are required to submit annual reports to Social Security accounting for how benefits are used. For more information on the responsibilities and restrictions that come with the role, see the Social Security publication "A Guide for Representative Payees" at SSA.gov/pubs/EN-05-10076.pdf.

How to Get Help


If you believe a beneficiary may need a representative payee, call Social Security at 800-772-1213 and make an appointment to discuss the matter at a local office. Applying to serve as a payee usually requires a face-to-face interview.

Social Security may consider other evidence in deciding if a beneficiary needs a payee and selecting the person to fill the role, including doctors' assessments and statements from relatives, friends and others in a position to give an informed opinion about the beneficiary's situation.

You should also know that if you become a representative payee you cannot collect a fee for doing it. However, some organizations that serve in the role do receive fees, paid out of the beneficiary's Social Security or SSI payments.

For more information on the program visit SSA.gov/payee.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Published September 10, 2021
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