District Court Decision Allows Payee Law To Be Enacted

A 1984 court decision was the last obstacle to the new representative payee law recently passed by congress and signed into law, but after the United States District Court for the Western District of Oklahoma announced plans to provide partial relief in Jordan v. Schweiker, the new provision will be enacted. The case involved a requirement where representative payees submit an annual accounting form, something the new law ends. Representative payees are appointed to administer the finances of people with significant disabilities who are unable to manage their own funds. The new law eliminated the requirement to file the annual accounting form for representative payees who are parents living with their children, or who are spouses.

U.S. Rep. Sam Johnson, (R-Texas), who is the chair of the House Ways and Means Social Security Subcommittee, said the district court’s decision will allow provisions of the new bill to be implemented.

“The district court’s decision frees Social Security to implement our commonsense bill that would relieve families from burdensome reporting requirements. I thank Social Security and the Department of Justice for moving quickly to request this relief,” Johnson said in an issued press release.

The ranking member of the subcommittee, U.S. Rep. John Larson, (D-Connecticut), said a portion of the 1984 ruling would remain in effect for other payees who are not parents, spouses or state mental hospitals, which would still be required to file the annual report.

“I am pleased the court has affirmed the intent of our bipartisan legislation, which strengthened Social Security’s representative payee program for vulnerable beneficiaries who are unable to manage their own funds,” Larson said. “The ruling allows SSA to fully implement the new law, which lifted a burden on families caring for their children and refocused SSA’s resources on hose beneficiaries most at risk for exploitation, including by supporting protection and advocacy groups.”