A Representative Payee Surety Bond is a license and permit surety bond required by the Social Security Administration of the Federal Government. It is required of those who collect Social Security or Supplemental Security Income benefits on behalf of the actual beneficiary who is incapable of managing money or who has requested a payee. A representative payee’s responsibilities include: Using benefits to pay for the current and foreseeable needs of the beneficiaries; appropriately saving any remaining benefits; and keeping good records of how you spend the benefits. Typically these people are family or friends. However when an organization serves in this capacity and when they do so for multiple beneficiaries, they are required to post a surety bond.
The bond guarantees the proper handling of the funds by the representative payee according to the guidelines of the Social Security Administration.