Objective

To quantify the benefits received by representative payees who were probation or parole violators

Background

While the Social Security Protection Act of 2004 contains a provision that disqualifies probation or parole violators from serving as representative payees for Title XVI recipients, there is no similar provision for Title II beneficiaries.

Also, the computer matching agreement the Social Security Administration (SSA) has with law enforcement agencies only covers the identification of fugitive felons who are representative payees and not probation or parole violators who are representative payees. 

Our Findings

Based on our sample, we estimate that between April 2005 and January 2009, about $26.9 million in Social Security funds was paid to about 1,800 probation or parole violators who were serving as representative payees  These payees received benefits for about 2,439 beneficiaries.  Of the $26.9 million, probation/parole violators serving as payees received approximately

• $18.9 million in Title XVI payments, and
• $8.0 million in Title II benefits.

Therefore, SSA was not complying with the Social Security Act requirement to prohibit probation or parole violators from serving as representative payees for Title XVI recipients.

Our Recommendation

We recommended SSA:

1. Work with Congress to update the Social Security Act so there is consistency in the law between probation or parole violators serving as representative payees for Title II and XVI beneficiaries.
   
   
2. Update its computer-matching agreement to allow SSA to identify probation or parole violators who are serving as representative payees and to use this information in determining whether a payee is suitable.