Audience:

DO/BO/TSC:

CR, CR TII, CR TXVI, FR, OA, OS, RR, SR

OCO-ODO-IND:

CA, CATA, CCE, LCC, LSC, RCOVTA, RECOVR

OCO-ODO-SHARE:

RC, RECONR

OCO-OIO-SHARE:

CA, CATA, CDT, FCR, RECONR

PSC:

CA, CCRE, CRTA, CS, ICDS, IES, ISRA, RECONR

TN 6 (09-02)

Citations:

20 CFR 404.2045 and 416.645

A. INTRODUCTION

Title II and title XVI benefits must be used for the immediate or reasonably foreseeable needs of the beneficiary. Any remaining benefits must be conserved or invested for the beneficiary.

The term “beneficiary” is used generically in this subchapter to refer to both title II beneficiaries and title XVI recipients. Title II and title XVI (or SSI) are specified when an instruction applies to only one type of benefit.

B. POLICY

1. Title II

All investments must be in a form which shows that the payee holds the property for the use of the beneficiary. Preferred investments are U.S. Savings Bonds or other investments with minimal risk. Benefits may also be invested in accordance with State law governing the investment of trust estates by trustees.

NOTE: For information on laws in a specific State, see PR 07240.000 — State Laws on Investment of Conserved Funds.

2. Title XVI

The purpose of the title XVI benefit is to meet the daily living expenses of the beneficiary. Remaining benefits must be conserved or invested for the beneficiary. However, the ability of a representative payee to save a substantial part of the title XVI benefit may be an indication that the beneficiary's needs are not being met or that the beneficiary may have income or resources that would affect his/her eligibility for SSI benefits.

C. PROCEDURE

1. Title II

Encourage payees to place accumulated funds in excess of $500 in interest-yielding investments. The beneficiary's right to use conserved benefits may not be made contingent upon his or her special use of it. For example, a payee may not conserve funds for a beneficiary specifically earmarked to pay for a college education and withhold the funds if the beneficiary later decides not to attend college.

2. Title XVI

If the payee has conserved SSI benefits that equal or exceed three times the individual Federal Benefit Rate (FBR), try to determine the reason for this accumulation; e.g., recent release of retroactive benefits which accrued prior to an award or while payment was suspended for selection of a new payee. If you are unable to find a reason, contact the payee to determine the reason for the accumulation of funds. Additional actions such as change of payee, misuse determination, etc., will depend on the information received from the payee.

If you need to change the payee or make direct payment, follow the procedures in GN 00603.055 – Transfer of Conserved Funds.