Operations

Representative Payee Accounts: Know the Rules

Verify that the beneficiary is in the credit union’s field of membership.

October 19, 2010
/ PRINT / ShareShare / Text Size +

The Social Security Administration issues 10% of its benefits payments to representative payees.

When a member asks you to open an account for another person who receives Social Security benefits, be clear on the rules.

The Social Security Administration (SSA) issues approximately 10% of its benefits payments (about five million per month) to representative payees.

A representative payee is an individual or organization appointed by SSA to receive Social Security benefits for someone who can’t manage or direct someone else to manage his or her money (a “beneficiary”).

The main responsibilities of a payee are to use the benefits to pay for the current and foreseeable needs of the beneficiary and to properly save any benefits not needed to meet current needs.

FrontLine NewsletterA payee must also keep records of expenses to show the SSA how benefits were used or saved. These expenses might include costs incurred in obtaining food, housing, clothing, medical care, and personal comfort items for the beneficiary.

Next: Establishing the account

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive