A proposal floating around the Social Security Administration (SSA) would bar anyone without a Social Security number from collecting benefits on behalf of retired, disabled, widowed, and low-income individuals. Whether the beneficiary currently collects benefits after a lifetime of working or SSDI for a disability, the new proposal would require their representative payee to provide proof that they have a Social Security number.

Representative payees

Let’s say a child of immigrants is a U.S. citizen and disabled. If that child is eligible for Social Security, they would need a representative payee to accept their monthly benefit check and determine the best way to spend it based on their needs. Given that a parent is usually in the best position to know what their child requires, they typically act as the representative payee.

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If a parent can’t produce a Social Security number, no matter where they are in the immigration process, the new proposal would make it impossible for them to act as a representative payee. The same is true for those representative payees looking out for the best interest of disabled adults, retired Social Security recipients, those receiving low-income benefits, and foreign payees who’ve worked legally long enough to become entitled to benefits.

Widows and other beneficiaries (of Americans who have died) living overseas could also be affected by losing access to a trusted representative payee. This brings the total number of beneficiaries at risk of missed or postponed payments to 170,000.

It’s easy to understand how disabled children, as well as elderly or disabled adults, benefit from a payee who ensures checks are received and their immediate needs are met. It is less clear who would take over representative payee duties.

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Why make a change?

It’s impossible to know precisely why the proposal was floated, but Martin O’Malley, former commissioner of the SSA, told the website Government Executive that it may be rooted in misinformation.

Some claim that undocumented immigrants receive benefits, and this misinformation spread during the last election cycle. According to O’Malley, the SSA received so many calls asking why it was giving money to illegal immigrants that the SSA had to post a disclaimer message on the top of its website, explaining that the story is false.

By cutting payments to 170,000 representative payees, those who’ve spread the misinformation will be able to say they “stopped paying illegal immigrants.”

The change may be jarring for American citizens who currently count on their representative payee to collect checks and pay expenses. According to the SSA, if the proposal becomes policy, the SSA will need to contact 170,000 representative payees. The task is sure to be challenging. Knowing where individual payees are at all times has always been difficult, so much so that the SSA has counted on institutional payees like child welfare agencies for help in the past.

If a switch takes place

Currently, the person who acts as a representative payee tends to be the best person for the job. For example, the parent of a child with a disability or the spouse of an Alzheimer’s patient may be the ideal representative due to their commitment to doing the right thing on behalf of the beneficiary.

Kathleen Romig, the director of Social Security and disability policy at the Center on Budget and Policy Priorities, told Government Executive that it will likely be more difficult for SSA to identify suitable representatives for certain beneficiaries. There may be a higher risk of fraud or misuse of funds if SSA chooses a friend or organization as payee rather than a parent or spouse.

As of today, nothing is set in stone. The SSA still needs to ensure it has the authority to change the policy. If the proposal moves forward, it’s safe to assume it will be unsettling for all parties involved.

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