With so many people in the United States collecting Social Security or Supplemental Security Income (SSI) benefits, some may need assistance with managing their money. Individuals looking for assistance can appoint a “representative payee”. The payee can be a relative, friend or interested party/organization appointed by Social Security. Their duty is to handle the funds coming into the beneficiary and manage them accordingly. Additional details on the responsibilities of the payee can be found in the Social Security Guide. As a Payee, only Social Security or SSI funds will be managed. Annual Representative Payee Reports are due for most representatives. Due to a recent change in law, Social Security Administration no longer requires the following payees to complete the annual report:
- Natural or adoptive parents of a minor child beneficiary who primarily reside in the same household as the child
- Legal guardians of a minor child beneficiary who primarily reside in the same household as the child
- Natural or adoptive parents of a disabled adult beneficiary who primarily reside in the same household with the beneficiary
- Spouse of a beneficiary
In some cases, a surety bond may be required if the payee is acting as a Fee For Service organization (FFS). This will offer protection to the beneficiary from financial loss that may be caused by the action or inaction of the FFS. The bond amount will vary depending on the total funds on hand. FFS applicants can apply to Social Security via Form SSA-445.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.