The Social Security Administration (SSA) proposes a new policy that could impact up to 170,000 beneficiaries. Under this proposal, individuals who manage benefits for eligible recipients, known as “representative payees,” would be required to have a Social Security number. This change addresses concerns that some current representative payees might not possess a Social Security number, complicating their role.
For example, a child of immigrants who is a U.S. citizen and disabled might need a representative payee, typically a parent, to manage their Social Security benefits. However, under the new proposal, if the parent lacks a Social Security number, they could no longer serve in this role. The policy could also affect other representative payees who cater to the needs of various beneficiaries, including disabled adults, retired individuals, and widows living overseas.
The potential shift might leave many beneficiaries at risk of experiencing delayed or missed payments.
New rule impacts representative payees
One reason for the proposal might be the spread of misinformation suggesting that undocumented immigrants receive benefits.
Former Commissioner Martin O’Malley clarified that the SSA does not provide benefits to illegal immigrants, but the proposal could be a response to appease those concerned by the misinformation. If implemented, the SSA must contact 170,000 representative payees to ensure compliance. Kathleen Romig, the Director of Social Security and Disability Policy at the Center on Budget and Policy Priorities, highlighted that the SSA might face difficulties identifying appropriate new representatives.
Transferring this responsibility to friends or organizations instead of parents or spouses could increase the risk of fraud or misuse of funds. The proposal has not yet been finalized, and the SSA must confirm its legal authority to enact this policy change. If it proceeds, it could have significant, unsettling implications for all parties involved.
