Rep Payee Problems

     From a recent report by Social Security’s Office of Inspector General:

SSA did not ensure employees made complete and accurate capability determinations for disabled beneficiaries who previously had payees.  We estimate, for approximately 19,000 disabled beneficiaries who previously had payees, there was no evidence SSA determined the beneficiaries were capable of managing, or directing the management of, their benefits.  In addition, there was no evidence SSA performed proper follow-up development.  SSA paid approximately $887 million in benefits directly to these beneficiaries without evidence to show they were capable of, or were, using the benefits to meet their basic needs.  Finally, we estimate SSA did not properly document capability determinations for approximately 6,700 beneficiaries. 

This occurred because SSA did not have effective system controls to ensure employees properly documented their capability determinations.  Additionally, SSA did not have controls to ensure employees authorized direct payments to incapable beneficiaries in accordance with SSA’s policy and properly performed the follow-up reviews after they made interim direct payment to those