So You Want to Change Your Representative Payee

SO YOU WANT TO CHANGE YOUR REPRESENTATIVE PAYEE, AND YOU DON'T KNOW HOW!

It is not uncommon for a person to call the office and say that he or she is a recipient of social security disability benefits and has had a representative payee (rep payee) appointed in the case. They want to change or remove the rep payee and ask how.

What is a rep payee? When a recipient of social security disability benefits has been determined to be unable or incapable to manage his or her own funds, social security requires that a rep payee be appointed to receive the benefits on behalf of the disability claimant. The rep payee has the obligation to use the money for the benefit and on behalf of the disabled individual.

In most cases, the person, who is appointed as a rep pay, is not forced upon the disability claimant, he or she is given the option of selecting someone they know to serve as their rep payee. As long as the person chosen, as the rep payee, has no history of of abusing the system on a prior occasion, not a felon, the person chosen most likely will be appointed.

Being a rep payee does come with obligations, the ones noted above to act in the disabled person's best interest and also may have to file an accounting explaining how the claimant's benefits have been spent.

If you want to make a change, either change the rep payee to another person, or claim you are competent and able to manage your own funds, you will need to do one of the following:

If you decide to change a rep payee – you can go to a local social security office and they will provide a form and will assist you in its completion. Although the process is simple, remember that you will need a good reason for the change and it cannot be associated with your involvement in illegal or harmful activities. You can't change a rep payee because he/she will not buy you more alcohol then is prudent. You can't change a rep payee because he/she pays your rent and that leave you little to spend on other items you want, etc.

If you want to take over your accounts without a rep payee – social security will require that you establish, with sufficient evidence, that your condition (whatever it was that adversely affected your ability to manage your funds) has improved enough that you now have regained the ability to manage your money.

WHOA, BE CAREFUL, if the reason for the appointment of the rep payee was the same reason that was the basis for the award of your benefits in the first place, have you now proven you are no longer disabled? A classic 'catch 22'.

This is to be considered general information and it is not intended as legal advise that can be used in every or any situation. If this is an issue, you need to talk to an attorney or a social security representative.

What is Disability

Here  is a common situation I experience in my office:  A fifty year old or older man or woman comes into the office.  I am told,  " I suffered an illness, injury, or disability and I cannot return to my job.  I want social security disability benefits that I have earned". 

Before any discussion can be had as to the procedure, the client needs to understand what disability means in the social security disability arena.  It is not simply unemployment insurance!

Social Security defines disability as: the inability to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less then 12 months not only unable to do his previous work but cannot considering his/her age, education and work experience, engage in any other kind of substantial gainful work which exists in significant numbers in the region or nation.

To understand the definition, it is helpful to break it down into its subparts:  First, you must have a "medically determinable physical or mental impairment".  Second, if you have such an impairment,  it must prevent you from performing substantial gainful activity.    Third, the impairment must lead to death or disrupt ability to work for at least 12 months or longer.  

This is the point that outlines the common situation that I described at the beginning of this blog.  What is missing is the Fourth element.  Fourth; it is not enough that you have a condition that fulfills the top three elements.  The fact that you cannot return to your old job, in itself is not a reason to obtain an award of disability.   To obtain an award, the impairment must also be so severe as to impose a severe functional limitation sufficient to prevent the ability to perform work activity.  In short, given the functional limitations imposed upon you by your impairment, is there a job in the national or regional economy that you could still do.

Jobs that no one seems to have heard of come to the forefront, for example, bench assembly, feather cutter etc.

In the majority of cases that go before an administrative law judge, this is the main issue in contention, and yes, it is in many instances a subjective determination by the judge.  I say that because in many cases the evidence turns on the judge's decision on credibility of you, or your doctor, or your witnesses.

If there is a stage of the proceedings that need the assistance of an attorney it would be before the administrative law judge.

Student Loan Discharge and Social Security

So you received a favorable ruling in your social security disability action. You are totally disabled from employment, you will receive a benefit check, going forward. There is another benefit that may within your grasp. That benefit, a forgiveness of your student loan!

You may be eligible to have your student loan canceled through a “total and permanent disability” discharge. With some exceptions, noted below, a discharge means you will not have to repay the student loan.

The Eligibility requirements are more restrictive then social security, and more difficult to meet. To be eligible you must be unable to do any ‘substantial gainful activity’ (work involving significant physical and or mental activities) because of a medically determinable physical or mental impairment that has lasted 60 months, can be expected to last for 60 months, is expected to result in death, or is due to a 100% military service connected disability.

Federal student loans eligible for discharge include William D. Ford Federal Direct Loan Program loans, Federal Family Education Loan (FFEL) program loans, Federal Perkins Loans or Education Assistance for College and Higher Education (TEACH) grant service grant obligations. Other loan programs and private loans have their own discharge rules.

To attempt to gain the benefit of the program you must apply for a discharge http://disabilitydischarge.com/Pages?Users.aspx?id=35 and meet their qualifications. You submit the application to your loan servicer, you must submit an application for each loan holder.

If you are not in default and being contacted by the loan servicing agency handling your loan, it may be difficult to discovery who holds your loan. In an attempt to locate the holder of your loan you can contact:

1. National Student Loan Data System (www.nsids.ed.gov)
2. FAS Collections Office 800-621-3115 (current 6/13)
3. Federal Student Aid Information Center 800-433-3243

Notwithstanding the foregoing the Department of Education will still do a three year discharge review to insure that the beneficiary is still disabled, or if the medical improvement not expected category has changed.