Representative payment began with the Social Security amendments of 1939, which authorized the Social Security Board to certify payment “to a relative or some other person” for the “use and benefit” of an applicant when it would serve the interest of an applicant for benefits. Beneficiaries who had representative payees have always been the most vulnerable groups of beneficiaries; children and individuals who were unable to manage their own funds. Dealing with representative payees in the SSI program is a substantial workload for SSA. About 2.8 million SSI beneficiaries, or about 37%, have payees.
The Board concludes with recommendations for the representative payee system. The Board recommends that the SSA continue examining the characteristics of payees and beneficiaries to identify cases with the greatest risk of misuse, target its selection, and monitor activities in the most efficient way. It should carry out its annual accounting in a way that is tailored to different risk groups. It should increase its efforts to avoid conflicts of interest when selecting people or organizations to serve as payees for vulnerable beneficiaries. SSA should implement an annual quality review sample of its payee activities. SSA’s Inspector General should annually review a sample of site visits to organizational payees and examine a sample of beneficiaries with fee-for-service payees.
The Statement is included in SSA’s 2010 Annual Report on the SSI Program. The Personal Responsibility and Work Opportunity Act of 1996 gives Board members the opportunity, individually or jointly, to include their views on SSI in SSA’s annual report to the President and Congress on the Supplemental Security Income (SSI) program. The Board or one of its members has submitted a statement every year since 1998, except for 2024 due to the lack of a quorum.