This is an organizational payee who is authorized by SSA to collect a fee for the services they provide to beneficiaries.
To qualify as fee-for-service, your organization must:
- Be a community based, nonprofit social service agency or organization which is bonded and licensed (Providing licensing is available) in the state in which you serve as a payee; or
- Be a state or local government agency with responsibility for income maintenance, social services, health care, or fiduciary duties.
In addition, a fee-for-service organization must:
- Regularly serve as a payee for at least five beneficiaries; and
- Not be a creditor of the beneficiary; and
- Formally apply and be authorized by SSA to collect a fee.
Effective December 2013 (the increase may be collected from the January benefit check), the monthly fee for payee services is the lesser of:
- 10% of the beneficiary monthly benefit amount or
For individuals with a Drug and Alcohol Abuse (DAA) condition, the monthly fee for payee services is the lesser of:
- 10% of the monthly benefit amount or
- $77.00 (SSA must authorize the higher fee).
A fee may not be collected if any of the following apply:
- The beneficiary does not receive a payment in the month;
- Your organization receives compensation, including guardianship fees, for performing representative payee services from another source;
- Your organization did not provide payee services for the month;
- SSA has determined that you have misused a beneficiary’s funds; or
- You serve less than five beneficiaries.
Current payments may not be used to collect fees for past months. Nor can a beneficiary’s conserved funds or personal needs funds be used to pay fees for payee services.
NOTE: One exception allows an organization to collect a fee from payment of retroactive amounts. The exception applies when a retroactive payment is made for a prior period of nonpayment or incorrect payment and the organization:
- Is approved to collect a fee for the months for which the payment is made;
- Did not collect a fee or collected a reduced fee;
- Provided representative payee services for the month for which payment is made; and
- Is the representative payee of record when the retroactive payment is received.