Santa Clara County Social Services Agency (SCCSSA) is the Payee for SSI and/or RSDI Benefits

Natural or adoptive parents or guardians who have custody of the child are the preferred payees for RSDI/SSI; authorized custodial agencies are the last resort. When a child is court dependent under the supervision of DFCS or JPD, SCCSSA can petition SSA to become the ARP for the SSI/RSDI benefits.

ARPs are responsible for using the benefits in the best interest of the child or youth. They must notify SSA of changes in income or anything that might effect the status of the benefits.

When SCCSSA is the payee on behalf of child or youth receiving SSI or RSDI the county must establish a no-cost, interest bearing maintenance account for each recipient. Interest earned shall be credited to the account. The county must keep an itemized current account of all income and expense items for each child’s maintenance account. The funds used in the account(s) must be only for the beneficiaries expenditures and cannot be loaned or used for anything other than the child’s needs.

ARP are responsible for submitting annual reports to SSA indicating how the benefits were spent or saved, how the benefits where used, and who made the decisions about spending or saving benefits.

ARP must submit a SCD 2432 FC when instructing Account Payable to issue benefits. A copy of the SCD must be maintained in the RSDI/SSI file.

Conserved Funds

Conserved funds are held funds not yet disbursed. When the ARP stops serving as the payee generally benefits and earned interest must be returned to SSA when not eligible to be abated to a FC or ARC account. SSA will reissue returned conserved funds to a successor payee or to the beneficiary directly if he or she no longer needs a payee.

SSA may permit an ARP to issue conserved funds directly to a successor payee to pay for food, clothing and shelter cost rather than returning all of funds to SSA, if it serves the best interest of the beneficiary. SSA will allow such transfers on a case-by-case basis.

The following procedures should be used for conserved fund:

  • If Court Dependency is dismissed and child returned home,  
    • Apply any benefits that can be abated,
    • Return excess to SSA.
  • If Court Dependency is dismissed and child is a LG (including Kin-GAP),
    • Apply any benefits that can be abated,
    • Assist the LG in becoming the ARP,
    • Return excess funds to SSA.
  • If Child is adopted,
    • Apply any benefits that can be abated,
    • Assist the adoptive parent in b

When the youth is 18 but under 21 and is exiting the FC program, the case must be reviewed with the assigned SW/PO. If the youth is entering an adult treatment facility, the SWC may seek approval from SSA to transfer any conserved funds to the facility. The SWC must also contact the agency’s public guardian program to determine if the youth has an assigned SW. If the youth has an assigned SW the SWC must advise the assigned SW regarding the status of the benefits before returning them to SSA. Benefits are to be disbursed based on the young adult’s need with the joint approval of SSA, the assigned SW and the SWC.

Maintenance of Benefits

Benefits are maintain in various accounts. The type of account will depend on the type of benefits (RSDI or SSI), if the amount is retroactive or if the amount sent is a lump sum payment.

SCCSSA must open one or more of the following accounts to receive the SSI/RSDI benefits:

  • Dedicated Account is opened by the SWC to maintain certain large retroactive payments covering more than six month of the current SSI benefits for an eligible child under 18. When retroactive benefits are approved SSA will generate a letter to the ARP. When the letter is received the SWC must be open a dedicated account before SSA will disburse the funds. The funds in this account must be maintained separately from the account that receives monthly benefits and is used for holding funds. When the account is opened the SWC must forward the letter to Accounts Receivable to deposit the money is the child’s account. The account is monitored by SSA. Funds in this type of account cannot be used for basic maintenance cost including foster care placement, the monthly funds are to be used for those cost. The funds can be used for the following:
  • Medical treatment,
  • Education or job skills training,
  • Personal needs assistance,
  • Special equipment,
  • Housing modification,
  • Therapy or rehabilitation, and
  • Items or services approved by SSA.
    • SWCs must keep records of deposits and expenditures from the dedicated accounts, and submit them to SSA if requested. Any expenditures that is not for one of the needs listed above must be approved by SSA, this includes repayment of SSI overpayments. The assigned SW/PO may request funds to be used for any of the above needs without providing a pre-authorized purchase order, however, after the purchase is made, the receipts must be forwarded to the SWC and a copy of the receipts retained in the SW/PO file.
  • CSP Account is a monthly maintenance account opened by the SWC when an SSI/RSDI application is filed. The status of the account will remain in a pending status until notified by the fiscal department SSI/RSDI money is received. The CSP account is also used where there is no open FC account. This account is normally opened when the FC payment is pending authorization, the FC program is discontinued, or the child is receiving ARC. This type of account is used manage monthly benefits.
  • Foster Care (FC) Account is a monthly maintenance account established by the SWC and is used to abate SSI/RSDI money against an open FC case. As long as the FC program is open, the SSI/RSDI income is abated each month. When the FC program is discontinued and funds can no longer be abated, the money is maintained in a CSP until it is either returned to SSA or disbursed to an approved payee authorized by SSA.

    • Note: Abatements are only to be applied to FC cases, including “county only” funded FC cases.

  • BT Account is an account with a financial institution in which money or securities are placed. No person may withdraw funds from a blocked account without the court’s permission. BT accounts are established for SSA beneficiaries receiving retroactive RSDI benefits when the benefits exceed the FC resource limit of $10,000. The funds can be maintained in a CPS account but must be transferred to a BT account when the benefits exceed the resource limit. Monies in BT accounts can only be released by court order.
  • When requesting money to be deposited into a BT account the SWC must provide MC 355 and the MC 356 to Account Receivable.
  • The SWC and the assigned SW/PO must work together when requesting withdrawals of monies in BT accounts. When requesting disbursement a copy of the signed MC 358 must be provided with the request to Accounts Payable.
    • If a BT is needed the SWC will prepare the following forms for deposits and withdrawals:
      • “Order to Deposit Money Into Blocked Account” (MC 355),
      • “Receipt and Acknowledgement of Order for the Deposit of Money Into Blocked Account” (MC 356),
      • “Petition for Withdrawal of Funds From Blocked Account” (MC 357), and
      • “Order For Withdrawal of Funds From Blocked Account” (MC 358).

        • Note: The account is not necessary if the conserved funds does not exceed the resource limit. BT account documents are located at http://www.courts.ca.gov.

 

SCCSSA uses the SSI/RSDI benefits to directly pay for the child’s or youth’s monthly placement costs and any excess in the account is used to pay costs in connection with their placements and passed on to the caregiver.

All transactions associated with any of the above accounts must be maintained on a ledger documenting receipts and expenditures of the funds.

When resources exceeds $2,000 for SSI recipients, the SWC with the joint efforts of the assigned SW/PO must disperse the excess to the provider for the needs of the child or return the funds to SSA.

When SCCSSA is no longer the ARP for SSA/SSI benefits, all held benefits are returned to SSA for distribution. This includes children that were in FC and have transferred to Kin-GAP or adopted.

Related Topics

Social Security Administration Benefits