Policy and Systems

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:

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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.

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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:

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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.

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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.

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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.

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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:

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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:

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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.

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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.

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