The following is excerpted from the RB-5 pamphlet.
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Events Which Must Be Reported to the RRB
A representative payee is responsible for knowing what events will affect the beneficiary’s continuing right to monthly benefits. The payee is also responsible for promptly reporting the occurrence of such events to the RRB. The events are as follows:Payments will be made to you for the beneficiary because it has
been decided that this will best serve the interest of the beneficiary.
When payments are made in this way through a representative payee, it is
generally because they are for a child, or an adult who is incapable of using
the benefits in his own interest.
The following discusses your responsibility in handling the other person’s
railroad retirement check. The nearest Railroad Retirement Board
office will be glad to answer any questions you have.
Most Railroad Retirement Board offices are open to the public from 9:00 a.m. to
3:30 p.m., Monday through Friday.
Note: If you live outside the United States, you will want to keep in touch with your nearest U.S. Foreign Service post or other office which distributes the check you receive.
1. What are my duties as a representative
payee?
Your job is to use the railroad retirement benefits you receive for the
beneficiary in his best interest. To do this you must keep yourself informed of
what the beneficiary needs. This is particularly important when the beneficiary
does not live in your home.
You must also report (for the beneficiary) certain events which can affect the payment of his railroad retirement benefits, and, upon request, you must be able to account for what you did with the benefits paid to you on behalf of the beneficiary.
2. What should I do with the Railroad
retirement benefits?
Since railroad retirement benefits are intended to replace part of the income on
which most families are dependent and which is lost because of the disability,
retirement, or death of the worker, the benefits will ordinarily be used to
provide for the beneficiary’s basic needs. First consideration must always be
given to using the benefits for the person’s day-to-day maintenance. This
includes paying the expenses of food, shelter, clothing, and meeting personal
needs, such as pocket money if the person is able to use it. Beyond this,
benefits may be used to take care of special needs the person may have, such as
school expenses, rehabilitation or medical expenses, and other purposes that are
in the beneficiary’s best interest.
Railroad retirement benefits which are not required for the beneficiary’s current support and needs, because you use your own or other money to support him, must either be saved or otherwise invested. However, the money may sometimes be used for the support of a legally-dependent spouse, child, or parent. (See question 6).
If you decide to use your own or other money instead of the railroad retirement benefits for the current support of the beneficiary and save or invest the benefits for him, you cannot ordinarily use the conserved benefits to repay others or yourself later.
3. What should I do if the beneficiary is
receiving health care under the Medicare health insurance program?
When a person having health insurance protection receives medical treatment or
care, you should:
You can get health insurance information at Railroad Retirement Board (RRB) offices.
4. How must I account for the railroad
retirement benefits?
Your relationship to the beneficiary has become like that of a trustee now that
you have been chosen as a representative payee. One of your key fiduciary
responsibilities in this relationship is to maintain appropriate records and
documentation pertaining to your use of benefit payments on the beneficiary’s
behalf. At the RRB’s request, you will be expected to provide the necessary
information to account for your use of the funds. Periodically, you will be
asked to complete a representative payee report which will include the following
questions:
In order to complete the questionnaire correctly, it is a good idea to keep current records of railroad retirement payments you receive and of what you do for the beneficiary with the proceeds of the payments. This booklet contains a representative payee’s record designed to help you keep accurate records. Additional records may be obtained from any RRB field office. You should retain these records for four years.
5. How should I use the railroad retirement
benefits of a person who is in a nursing home or other institution?
Priority should be given to using benefits for "current maintenance needs" of a
beneficiary who is a patient in a Federal, State, or private institution because
of his physical or mental incapacity. "Current maintenance" includes the
usual charges the institution makes for providing care and maintenance.
You should communicate with an official of the institution or the designated State officer and arrange, if required, to pay part of the benefits to meet the charges for the beneficiary’s care and support. You may not be required to use the benefits to pay maintenance charges when:
You are not required to use the railroad retirement benefits to pay maintenance charges when:
When arranging to pay a certain amount regularly for the beneficiary’s care and maintenance, you should make sure you will still have enough money left to pay for some of the things the beneficiary needs that are not customarily provided by the institution. You can find out about these things by talking or writing to the hospital superintendent, the doctor in charge, or the social worker. The following are most often needed by patients in public hospitals and may be paid from railroad retirement benefits to help them keep up their morale, self-respect, and confidence.
6. When may railroad
retirement benefits be used to support the
beneficiary’s legally dependent spouse, legally dependent child, or legally
dependent parent?
If the current maintenance needs of a beneficiary are being met, you may use
part of the railroad retirement benefit payments you are receiving for him to
support his legally dependent spouse, child, or parent. If you are not sure of
an expenditure, consult your railroad retirement office before using the
railroad retirement benefits to support the beneficiary’s legally dependent
spouse, legally dependent child, or legally dependent parent.
7. May I pay old bills of the person for whom
I am receiving railroad retirement benefits?
Under the Railroad Retirement Act benefits you are receiving on behalf of
another person generally may not be taken away from you by someone who is trying
to collect old bills. This provision makes sure that the beneficiary will have
his benefits available to pay his day-to-day expenses. Therefore, the benefits
you are receiving on behalf of another person should not ordinarily be used to
pay bills owed by that person before the first month for which railroad
retirement benefits were payable to a representative payee. Railroad retirement
benefits may, however, be used to make payments on the beneficiary’s house and
to pay his taxes and insurance premiums. If you feel that the beneficiary’s
daily needs are being fully met and payment of an old bill would be in his best
interest, discuss the situation with representatives at the nearest RRB office
before paying the bill.
8. How should I invest the
railroad retirement benefits I am receiving on behalf of another person?
You should invest the amount of the railroad retirement benefits that will not
be needed by the beneficiary in the near future as a trustee would invest money
from an estate. Preferred investments are U.S. savings Bonds, but you may also,
for example, deposit money in an insured account in a bank, trust company, or
savings and loan association where it can draw interest. You should not keep
money in your home where it may be lost or stolen. Neither should you mingle it
with your own or other funds. U.S. Savings Bonds bought for a minor beneficiary
should be registered as follows:
"(Name of Beneficiary—His Social Security Number) a minor beneficiary for whom (Your Name) has been designated representative payee by the Railroad Retirement Board."
U.S. Savings Bonds bought for an incapacitated adult beneficiary should be registered as follows:
"(Name of Beneficiary—His Social Security Number) an incapacitated adult beneficiary for whom (Your Name) has been designated representative payee by the Railroad Retirement Board."
Because the money you receive as a representative payee belongs to another person, bank accounts and other accounts should be registered in a way that shows the money in trust for the true owner. For example:
"(Name of Beneficiary) by (Your Name), representative payee," and "Name of Beneficiary) by (Your Name), trustee."
9. What should I do with the railroad
retirement benefits I have saved if I cease to be the representative payee for
the beneficiary or if the beneficiary dies?
If you are no longer going to serve as representative payee, you will generally
be required by the RRB to turn over all the railroad retirement benefits you
have saved to a new representative payee. However, you may instead be
required to turn over all the railroad retirement benefits you have saved to the
beneficiary himself. If the beneficiary dies, any of his benefits which you have
saved or invested belong to his estate, and must be turned over to the legal
representative of the estate for distribution in accordance with State law or
must otherwise be handled in accordance with State law. You should be able to
get information about State law on this matter from your probate court or
attorney.
10. What must I report about changes in the
care and guardianship of the beneficiary?
Payments to a representative payee are made on the basis of his current
responsibility for the beneficiary or his relationship to the beneficiary. The
following events which may affect the basis of the initial selection of a
representative payee must be reported to the Railroad Retirement Board:
11. Where can I get additional information?
If you are uncertain that a proposed use of benefit is proper, write, phone, or
visit the nearest Railroad Retirement Board office. Most Railroad Retirement
Board offices are open to the public from 9:00 A.M. to 3:30 P.M., Monday through Friday.
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Page last updated June 14, 2004 |