Informing Social Security's Process for Financial Capability Determination (2016) / Chapter Skim
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1 Introduction
1 Introduction
Pages 17-30
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From page 17... ...
. The Social Security Act Amendments of 1939 gave the Commissioner of Social Security the authority to make benefit payments to an individual 1 Disabled beneficiaries who are now adults but became disabled prior to age 22, which SSA refers to as disabled adult child beneficiaries, receive benefits based on their parents' Social Security earnings record.
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. SSA designates three categories of evidence in the capability determination process: legal, medical, and lay.3 Legal evidence comprises findings regarding competence by the courts.
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. In carrying out this task, the committee was asked to address several specific topics, including capability determination processes used in similar benefit programs, requisite abilities for managing or directing the management of benefits, methods and measures for assessing capability, the use of capacity assessment tools, appropriate roles for SSA and state Disability Determination Services employees, and effects on the beneficiary of appointing a representative payee.
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project that the number of adult OASDI beneficiaries and SSI recipients in need of a representative payee will increase by 620,000 (21.1 percent) by 2035.5 The primary goal of representative payment is to ensure that benefits are expended in the best interests of the beneficiary.6 Recognizing the 4 This number includes disabled adult beneficiaries, disabled widow(er)
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s 257,871 14,774 5.7 Children 4,355,214 3,944,251 90.6 Under 18 3,166,362 3,164,001 99.9 Disabled adult children 1,048,879 774,621 73.9 Students, aged 18-19 139,973 5,629 4.0 Total 59,007,158 5,571,495 9.4 SOURCE: SSA, 2015a, Table 5.L1. TABLE 1-2 Number and Percentage Distribution of Supplemental Security Income (SSI)
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As evidenced in Tables 1-1 and 1-2, SSA serves a diverse population, including adults with disabilities; disabled adult children; and nondisabled adults, including aged SSI recipients and retirement beneficiaries. Table 1-3 presents the number and percentage of adult beneficiaries in these three groups with representative payees.
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, decision-making capacity (Karlawish, 2015) , and the capa bility to manage SSI and SSDI benefits (Rosen, 2015)
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Similarly, individuals who are mentally capable of managing their own funds but have a physical impairment, such as quadriplegia or an inability to speak, that makes them physically unable to accomplish the tasks required to do so may still be able to direct someone else to perform those tasks. In the context of SSA capability determinations, the question is really one of financial capability -- managing or directing the management of one's funds in a way that routinely meets one's best interests.
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Financial Financial Knowledge Judgment FIGURE 1-1 Conceptual model of financial capability. Figure 2-1 and 1-1, editable language in concrete situations)
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. Underlying financial competence and financial performance, as d epicted in the committee's conceptual model of financial capability (see Figure 1-1)
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needed to make financial decisions and choices that serve the individual's best interests Financial knowledge: possession of the declarative and procedural knowledge required to manage one's finances Financial performance: the degree of success in handling financial demands in the context of the stresses, supports, contextual cues, and resources in the individual's actual environment Lay evidence: any evidence other than legal or medical evidence that provides material and relevant facts as to the beneficiary's ability to manage or direct the management of funds and meet his or her basic needs Legal evidence: findings by the courts regarding competence Medical evidence: information about a person's physical or mental condition (e.g., medical signs and laboratory findings, medical history and treatment records, opinions from medical sources) that sheds light on a beneficiary's ability to manage or direct the management of funds, based on an examination of the beneficiary by a physician, psychologist, or other qualified medical practitioner financial literacy "typically refers to the knowledge and skills needed to make sound financial decisions," financial capability also includes "access to financial services, behavioral factors, social influences, and emotions" (Collins, 2013, p.
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REPORT ORGANIZATION In the following chapters, the committee provides a description of SSA's current policy and processes for capability determinations, along with the policies and processes of similar programs in other government agencies and nongovernmental organizations, including the VA, OPM, CPP and the Old Age Security program, and the private insurance industry (Chapter 2) ; effects of the appointment of representative payees on beneficiaries (Chapter 3)
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Presentation to the Committee to Evaluate the Social Security Administration's Capability Determination Process for Adult Beneficiaries, February 3, Washington, DC. Representative Payment Advisory Committee.
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Presentation to the Committee to Evaluate the Social Security Administration's Capability Determination Process for Adult Beneficiaries, February 3, Washington, DC. WHO (World Health Organization)
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