Should State Agencies Serving As Rep Payees For Children Be Allowed To Seize The Children's Social Security Benefits To Pay For Their Care?

     From WUNC, an NPR station

To Teresa Casados, who runs the department in charge of child welfare in New Mexico, it seemed like an odd question. At a legislative hearing in July, a lawmaker asked her if the state was taking the Social Security checks of kids in foster care — the checks intended for orphans and disabled children.

"My reaction really was: That can't be right," said Casados, who in the spring took over as acting secretary of New Mexico's Children, Youth & Families Department. "That can't be a practice that we're doing." ...

Casados and her chief legal counsel drove back to the office. "When we got back, we looked into it and found out it was a practice that the agency had for using those benefits — and had been going on for quite some time." ...

[L]ast month, the U.S. Department of Health and Human Services and the Social Security Administration sent a letter to state and local child welfare agencies to encourage these changes.

The NPR/Marshall Project investigation found that in at least 49 states and the District of Columbia, when young people go into foster care child, welfare agencies routinely look for which ones come with Social Security checks. Or, if the children are eligible, agencies sign them up for benefits. Then state agencies cash those checks — usually without telling the child or their family, the investigation found. ...

Just days after that legislative hearing in New Mexico, Casados says her department "sent out a directive to cease using those funds for care and support." It pledged to start putting aside the Social Security benefits checks for foster children to have when they go back to their families or age out of foster care. ...

Another Report On Rep Payees

     The Social Security Advisory Board (SSAB) has released a study it commissioned on representative payees at Social Security. Rep payees handle money for beneficiaries who are unable to handle it for themselves. Most often a rep payee is a grown child or other close relative who handles the money responsibly but improper or illegal conduct by rep payees isn't as rare as anyone would like. The study is fine although its first recommendation, more studies, is part of the tradition of scholars making such self-serving recommendations when they do research for the federal government.

     Unfortunately, there are three underlying problems with rep payees that no one seems to be able to do anything about:

• There are some claimants who don't have anyone close to them who is willing to be rep payee. If some stranger is going to have to do it and do it right, it's going to cost real money but taking more than a nominal sum out of the benefits will leave some claimants without enough money to live on.
  
• There are temptations for rep payees. Some will give in to the temptation and steal from the person whose money they're supposed to be handling. There's no way to completely prevent this. There's not even a clear path to reducing it. Detecting it after it happens is difficult.
  
• Overseeing rep payees is a difficult job. Even with adequate staffing at Social Security there will always be problems but Social Security lacks the manpower to do a lot of things, including effectively overseeing rep payees. That's because agency appropriations are too low, like, maybe, two billion dollars a year too low. One political party tries hard to keep the Social Security Administration underfunded for reasons that go well beyond rep payees.
  

Rep Payees And Stimulus Payments

     When a person is receiving Social Security benefits through a representative payee their economic stimulus payment is being sent to the bank account of their representative payee because that’s the only bank account information Social Security has to give the Department of the Treasury. Social Security has now announced that it isn’t responsible for making sure the money is spent in the interests of the person it is intended for. Apparently, no agency is.

CDRs And Overpayment Collection Suspended Among Other Things

     From a new Social Security Covid-19 website:

What workloads is SSA not doing during the COVID-19 pandemic?

Created: March 18, 2020

We have suspended the following workloads until further notice:

• We will not start or complete any current medical continuing disability reviews. If you have a medical continuing disability review pending, please do not request medical information from your doctors at this time. We will follow up with you for any medical evidence once the COVID-19 public health emergency subsides.
• Where possible, we are suspending our processing and collection of overpayments.
• We are not conducting organization or individual representative payee accountings.
• We will not be able to process a third party requests for information, except from appointed representatives and representative payees
• We will not process any Freedom of Information Act (FOIA) requests.

     What if Social Security is already withholding part of a claimant's benefits because of an overpayment? Are they suspending that?

Final Regs On Advance Designation Of Rep Payee

     From today's Federal Register:

We [Social Security] are finalizing our proposed regulations specifying the information Social Security beneficiaries and applicants must provide to designate individuals as their possible representative payee in advance of our determination that the beneficiary needs a representative payee. These regulations additionally set forth how we will consider an individual's advance designation when we select a representative payee, and fulfill our obligation under 201 of the Strengthening Protections for Social Security Beneficiaries Act of 2018.

Rep Payee Fraud In Washington State

     From a press release:

A Kitsap County [WA] man who ran a business serving as a financial guardian for elderly or disabled clients pleaded guilty today in U.S. District Court in Tacoma to Social Security Fraud – Representative Payee Fraud. WAYNE JEROME HOUSTON, 61, of Port Ludlow, Washington owned and operated Cross Point Services LLC, a guardianship organization for disabled and vulnerable adults.  ...

According to the plea agreement, HOUSTON and his company were responsible for managing the financial affairs of 15-20 clients a month.  HOUSTON had access to the clients’ bank accounts so he could pay rent, utilities and other bills for them.  Social Security benefits were paid into some of the accounts, for at least 13 clients who required a representative payee to manage their benefits.  HOUSTON was the representative payee for at least 13 disabled clients.  Beginning in 2010, HOUSTON used his position as guardian to write checks from the victim accounts to himself, to Cross Point Services, or to cash, and used ATMs to withdraw money from client accounts and used it for his own expenses.  HOUSTON targeted clients who had significant income or resources so that the theft was less likely to be detected.

The amount stolen is still under investigation but is between $150,000 and $280,941.   Of that, approximately $83,000 was Social Security Administration benefit funds. ...

Proposed Regs On Advance Designation Of Rep Payee

     From a notice from the Social Security Administration that will appear in tomorrow's Federal Register:

The Strengthening Protections for Social Security Beneficiaries Act of 2018(Strengthening Protections Act)requires us to promulgate regulations specifying the information Social Security beneficiaries and applicants must provide to designate a representative payee in advance of our determination that the beneficiary needs a representative payee.We propose to revise our rules to satisfy this requirement,and to specify that we will allow individuals to designate in advance one or more potential representative payees. We also explain how we propose to consider an individual’s advance designation when we select a representative payee.

Support For GAO Report On Organizational Rep Payees

     From the Ripon Advance:

U.S. Rep. Tom Reed (R-NY) welcomed federal recommendations and urged their adoption to strengthen the U.S. Social Security Administration’s (SSA) monitoring of and reliance on organizations like non-profits or nursing homes that help beneficiaries manage their benefits.

“SSA should adopt these recommendations promptly,” said Rep. Reed and U.S. Rep. John Larson (D-CT), ranking member and chairman, respectively, of the U.S. House Ways and Means Social Security Subcommittee, in a joint Oct. 4 statement.

The new Government Accountability Office (GAO) report, Social Security Benefits: SSA Needs to Improve Oversight of Organizations that Manage Money for Vulnerable Beneficiaries, makes nine recommendations for SSA, including that the agency assess requiring background checks for organizational payees; and establish timeframes for, and conduct revisions of the accounting form required annually for most organizational payees, according to the lawmakers’ statement. ...

Rep Payee Steals From Ten In Oregon

     From KPTV:

A Madras [OR] woman pleaded guilty Tuesday to stealing tens of thousands of dollars in Social Security payments from disabled adults, the U.S. Attorney’s Office in Oregon says. ...

Court documents state Tucker beginning in March 2014 worked for a social services organization in Madras where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. As part of her work, Tucker assumed representative payee duties for some of her clients’ Title II and Title XVI Social Security benefits, the attorney’s office says. ...

An investigation revealed Tucker had stolen $39,277 from 10 victims, the attorney’s office says. ...

     I don't know how you keep it from happening but there have been too many reports like this.

New Rep Payee Rules

     Social Security has adopted final rules that prohibit persons convicted of certain crimes from serving as representative payees. This is being due to effectuate a law passed by Congress.

Rep Payee Rips Off 250 In Alabama

     From a television station in Alabama:

A Tuscaloosa Easterseals worker is facing federal prison time for wire fraud. Court records show Tamara Jean Conwell will plead guilty in the case.  

Conwell worked as a representative payee with Easterseals of West Alabama, where she managed the benefits of nearly 250 social security recipients.  

 Federal prosecutors say she schemed to use more than $105,000 intended for those beneficiaries for her own personal expenses. She has agreed to pay that amount in restitution. ...

SSA Seeking Comments On Rep Payees

     From a request for comments posted by Social Security in today's Federal Register:

We are requesting information on the appropriateness of our order of preference lists for selecting representative payees (payees) and the effectiveness of our policy and operational procedures in determining when to change a payee. We are seeking this information to determine whether and how we should make any changes to our representative payee program to help  ensure that we select suitable payees for our beneficiaries.

Proposed Regs On Rep Payees

     The Social Security Administration has published proposed regulations to implement legislation passed in August that prohibits persons convicted of certain criminal offenses from serving as a representative payee in certain circumstances. I hope there's enough discretion remaining in this proposal. Certainly, there are rep payees who rip off Social Security beneficiaries but the biggest problem I've seen has been a lack of anyone willing or able to be a rep payee. Blanket disqualifications may exclude trustworthy people. It's possible to commit a crime, be convicted, serve your time and then get out and live an honorable life.

Annual Accounting Relief

     From a press release:

Yesterday, the United States District Court for the Western District of Oklahoma announced its decision to grant the Social Security Administration (SSA) partial relief from the 1984 Jordan v. Schweiker decision requiring all representative payees to submit an annual accounting form. This decision allows the SSA to move forward implementing a key provision of the Strengthening Protections for Social Security Beneficiaries Act.

Commenting on this decision, Rep. Sam Johnson (R-TX), the Chairman of the House Ways and Means Social Security Subcommittee, said:

“Last month, President Trump signed into law Ranking Member Larson’s and my bill that improves Social Security’s representative payee program in order to better protect beneficiaries who are unable to manage their own benefits.  The District Court’s decision yesterday frees Social Security to implement our commonsense bill that would relieve families from burdensome reporting requirements.  I thank Social Security and the Department of Justice for moving quickly to request this relief.” 

Subcommittee Ranking Member John Larson (D-CT) added:

“I am pleased that the Court has affirmed the intent of our bipartisan legislation, which strengthened Social Security’s Representative Payee program for vulnerable beneficiaries who are unable to manage their own funds. The ruling allows SSA to fully implement the new law, which lifted a burden on families caring for their children and refocused SSA’s resources on those beneficiaries most at risk for exploitation, including by supporting protection & advocacy groups like Disability Rights Connecticut that exist in every state. I’d like to thank Chairman Johnson for his tireless efforts on behalf of the country’s vulnerable beneficiaries.”

Social Security Bill Signed Into Law

     From a press release issued last Friday:

Today, President Trump signed into law the Strengthening Protections for Social Security Beneficiaries Act of 2018 (H.R. 4547). Introduced by Ways and Means Social Security Subcommittee Chairman Sam Johnson (R-TX) and Ranking Member John Larson (D-CT), this bipartisan legislation will modernize the representative payee program so that it will better protect Social Security beneficiaries who are unable to manage their own benefits. ...

Specifically, the Strengthening Protections for Social Security Beneficiaries Act of 2018 will:

• Strengthen oversight of representative payees by increasing the number of performance reviews of payees, requiring additional types of reviews, and improving the effectiveness of reviews;
• Reduce the burden on families by eliminating the requirement to file the annual accounting form for representative payees who are parents living with their children or who are spouses;
• Protect the most vulnerable beneficiaries through improved information-sharing by requiring the Social Security Administration (SSA) to identify whether a beneficiary is in foster care and reassess whether the payee is appropriate, and by directing the SSA to study how better to coordinate with Adult Protective Services and with state guardianship courts;
• Enhance personal control by allowing beneficiaries to make a designation of their preferred payee in advance, and improve payee selection by requiring the SSA to assess the appropriateness of the order-of-preference list it uses to select payees;
• Limit overpayment liability for children in the child welfare system; and
• Ensure that no beneficiary has a barred payee by codifying the policy that bans individuals with certain criminal convictions from serving as payees (including individuals currently serving as payees) and prohibiting individuals who have payees from serving as a payee for others.

H.R. 4547 To Become Law

     The Strengthening Protections for Social Security Beneficiaries Act of 2018, H.R. 4547, having to do with representative payees has passed both houses of Congress unanimously and should be signed into law by the President soon.

SSAB Report On Rep Payees

     The Social Security Advisory Board (SSAB)has issued a 46 page report on Improving Social Security's Representative Payee Program. Here are their recommendations:

Recommendations to SSA [Social Security Administration]: Š 

• Standardize the capability determination process by using empirically-based assessment and decision-making methods. Š 
• Establish a centralized process to certify new FFS [Fee For Service] organizational rep payees instead of having each FO do its own certification. Š 
• Research and evaluate the order of preference for rep payee selection. Š 
• Implement a plan to achieve full compliance with SSA’s criminal bar policy within five years. Š 
• Examine the effectiveness of the criminal bar policy and continue to strengthen it as an appropriate monitoring device. Š 
• Create specialized rep payee expertise at the FO [Field Office] and/or regional level to administer the rep payee program more uniformly, to answer questions and train new rep payees and to manage organizational rep payee workloads. Š 
• Develop strategies to inform the public of resources related to the SSA rep payee program and how to report suspected abuse. 

Recommendation to Congress: Š 

• No longer require all custodial parents and legal guardians of minor children and spouses residing with adult beneficiaries/recipients to submit an accounting report annually. Instead, these rep payees would be required to submit accounting reports upon SSA’s request. SSA will request accounting reports from at least five percent of the total exempted group each year, with selection done on a partly randomized and partly targeted basis. SSA would develop data and procedures for targeted selection of cases for accounting-report submissions and reviews. SSA will also develop a process to notify regularly all rep payees in the exempted group of their reporting responsibilities, their being subject to audit, if selected, and their need to maintain an ongoing account of how Social Security benefits are spent. Š 
• Increase oversight of contracted monitoring through the inclusion of measurable performance standards to assess the monitoring process, including the development of quality, timeliness and quantity standards and a method of assessing compliance with those standards. 

Recommendation to Congress and SSA: Š 

• The performance of analytical models that are used in the monitoring processes should be periodically examined and judged by experts outside of SSA. Experts conducting this work should provide findings to Congress. Š 
• Improve the design of the annual accounting form and monitoring of all rep payee and organizational rep payees with annual reporting requirements.

Recommendations to OMB [Office of Management and Budget]: Š 

• Study how best to coordinate the management of federal benefits for people who have been determined to be financially incapable with the recognition that alternative approaches such as supportive decision making have been embraced by key stakeholders. Š 
• Consider the creation of a shared database for federal benefit-paying agencies and state and local courts that make guardianship decisions. The database will assist in improving financial capability determinations, rep payee selection and oversight of the program.

Bill Introduced On Rep Payees

     From a press release issued on December 5:

Today, Ways and Means Social Security Subcommittee Chairman Sam Johnson (R-TX) and Ranking Member John Larson (D-CT) introduced the Strengthening Protections for Social Security Beneficiaries Act of 2017 (H.R. 4547), bipartisan legislation to improve and strengthen the Social Security Administration’s (SSA) representative payee program. ...

The Strengthening Protections for Social Security Beneficiaries Act of 2017:

• Strengthens oversight by increasing the number of performance reviews of payees, requiring additional types of reviews, and improving the effectiveness of the reviews by the requiring the Protection and Advocacy system of each state to conduct the reviews, on behalf of the Social Security Administration (SSA).
• Reduces the burden on families by eliminating the requirement to file an annual payee accounting form for parents who live with their children and for spouses.
• Enhances personal control by allowing beneficiaries to designate their preferred payee in advance of actually needing one; and ensures improved selection of payees by requiring the SSA to assess the appropriateness of the preference list used to select payees.
• Improves beneficiary protections by increasing information sharing between the SSA and child welfare agencies, and by directing the SSA to study how better to coordinate with Adult Protective Services agencies and with state guardianship courts.
• Limits overpayment liability for children in the child welfare system.
• Ensures that no beneficiary has a barred payee by codifying the ban on individuals with certain criminal convictions from serving as payees and prohibiting individuals who have payees from serving as payees for others.

     I don't like the idea of greater involvement of Protection and Advocacy systems. I think that's asking for trouble. Social Security isn't good at that sort of interface. Unfortunately, there will always be some representative payees who rip off the people they're trying to help. I strongly doubt that this sort of thing would help.

Most Retirees With Dementia Lack A Representative Payee

     Three researchers associated with the Center for Retirement Research at Boston College have taken a look at representative payees and retirees with dementia. Representative payees help those who can no longer manage their money. Usually, representative payees are family members or friends.

     It turns out that while over 10% of retirees have dementia, only 1.5% have a representative payee. The report notes that many of those without a representative payee receive help anyway. For those with mild cognitive impairment 85% have some help and 95% of those with dementia receive help. As a personal aside, I'm familiar with how this happens. I've ended up handling the financial affairs of two relatives with dementia who have since passed away. In neither case was I appointed representative payee.

Rep Payee Problem In Iowa

      From the Des Moines Register:

Not long after he moved back to Des Moines in 2015, Dustin Driskell began using a nonprofit downtown called Social Equality to handle his disability money. 

Driskell, 36, was adopted as an infant out of foster care. His mother committed suicide when he was 5; his father died suddenly when he was 11. For several years, he was bumped around between foster homes and shelters. He’s got a laundry list of mental health diagnoses requiring a cocktail of medications. 

Driskell needs help handling money because he’s been preyed upon by those who would take what little he has. 

Yet he struggled to get Phong Heu, the owner of Social Equality, to pay his bills on time or give him money when he needed it to buy groceries and other necessities. 

“Dustin slept on his apartment bedroom floor for several months because the payee wouldn’t give him the money to buy a bed,” his sister Deanna Hepworth wrote Watchdog. ... 

With the help of a staff member from Optimae Lifeservices in the East Village, Driskell filed a complaint last fall with Social Security against Social Equality. 

And then, in October, the payee service at 699 Walnut St. abruptly closed its doors. Driskell’s payments were suspended for a spell, and he was told Social Equality was under investigation. For a time, he got emergency payments, and then those, too, faltered. ... 

Driskell and Hepworth learned about the Social Equality investigation after his payments didn’t arrive last November. 

But in that case, Social Security workers set up emergency funds for Dustin and others after regular payments were suspended. 

Payments arrived in January, February and March. But last month, payments were suspended again. They were delayed again this month until, after three calls and two visits by Hepworth to the Social Security office, they were restarted. 

The delays have meant that Driskell has had no money at times, or he borrows it from his grandmother, Optimae and Iowa’s Department of Human Services to pay for rent and groceries. ...

     By the way, this otherwise fine article includes a weird detour into the Conn case. I didn't include it above. Mentioning the Conn case makes no sense in the article. I can't imagine why the reporter included it or the editor allowed it in.