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OIG finds benefits for many child beneficiaries were never paid

From a recent report by Social Security's Office of Inspector General (OIG):

Some individuals cannot manage or direct the management of their finances because of their youth or mental and/or physical impairments. SSA appoints representative payees to receive and manage these beneficiaries’ payments. When circumstances change or suggest a representative payee may no longer be suitable, SSA may suspend benefits and initiate a search for a new representative payee. SSA may also pay beneficiaries directly while it is searching for a new representative payee, unless it would cause the beneficiary substantial harm. In addition, under certain circumstances, child beneficiaries age 15 to 17 can be paid directly.

However, SSA cannot make direct payments to child beneficiaries under age 15 unless they have been legally emancipated. Finally, upon attaining age 18, unless direct payment is prohibited for other reasons, beneficiaries are presumed to be legally competent adults and no longer require representative payees solely based on their age.

To ensure SSA appoints representative payees timely, systems alerts are generated to SSA field offices for beneficiaries who have been suspended pending the selection of a representative payee. When these alerts are generated and a representative payee cannot be found, field office staff should initiate direct payment to beneficiaries unless the beneficiary is legally incompetent, is under age 15 and not legally emancipated, or has a drug addiction or alcoholism condition and direct payment is determined to be inappropriate. Alerts are generated to field offices each month until benefits are reinstated.

We identified 13,739 previously entitled child beneficiaries over age 18 who had past due benefits that were withheld pending the selection of a representative payee. When these child beneficiaries attained age 18 and therefore were presumed capable of managing their own benefits, SSA should have paid the withheld benefits directly unless it had information that the beneficiaries had impairments that prevented them from managing their benefits.

Read the full report here.

The Social Security attorneys at Sullivan & Hepler understand that you have questions regarding your Jacksonville Social Security disability claim. We have your answers. Before you hire an attorney or file your claim, order this free consumer guide Cutting Through the Red Tape: Top Ten Things Florida Social Security Disability Applicants Should Know for more information about how to build a strong claim. Contact us today at 904-384-8808 or 1-800-295-4193

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