IM-88 07/23/98 Dedicated Accounts For SSI Recipients under Age 18
|Dedicated Accounts For SSI Recipients under Age 18|
|The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA) established a new requirement for handling
some payments of past due amounts to SSI recipients under age 18 who have
Section 213 of PRWORA requires that if a past due payment is a payment of monthly benefits greater than six times the current SSI maximum for one person, then the representative payee must deposit the payment into a dedicated account. The requirement applies to all such payments made after August 22, 1996. The Social Security Administration (SSA) will not pay past due monthly benefits until a dedicated account has been established. SSA will direct deposit these payments into the dedicated account.
A dedicated account may be a saving's account,
a checking account, or a money market account established in a financial
institution. It may not be a certificate of deposit, a mutual fund,
stocks, or bonds. The title of the account must show that the child
owns the funds (including interest), but only the payee can access the
funds on the child's behalf. The account must have the sole purpose
of receiving and maintaining SSI past due benefits. Other payments
(regular SSI payments, OASDI payments, and other
Once a dedicated account is established, other past due amounts that exceed six times the SSI maximum for one person must be deposited into it. Past due amounts which are at least equal to the SSI maximum for one person and are less than or equal to six times the SSI maximum for one person may be deposited into the account, but is not a requirement.
The dedicated account is to be used only for the benefit of the child and only for certain expenses:
EFFECT ON ELIGIBILITY
Resources -- Any funds in an SSI dedicated account are exempt as available resources for Food Stamps, Temporary Assistance, and all Medicaid programs. The exclusion of a dedicated account continues until the account is depleted or eligibility for SSI terminates, whichever comes first. If SSI eligibility ends, any balance remaining in the dedicated account must be considered an available resource to the former SSI recipient.
The exclusion continues to apply in any of the following situations:
For Food Stamps exempt any funds deposited
in the account from countable income. Exclude as income any disbursements
of these funds from the account. The payments are considered non-