The Social Security Protection Act of 2004

                                        Public Law 108-203

On March 3, 2004, President Bush signed The Social Security Protection Act of 2004. The Act

contains significant improvements in the administration of both benefit programs (title II and SSI)

and the expansion of certain work incentives. Among the changes: 1) beneficiaries will receive a

receipt when they report income; 2) certain representative payees will be held more accountable

for the management of benefits; 3) the Work Opportunity Tax Credit is applicable to beneficiaries

participating in the Ticket to Work program; 4) The Student Earned Income Exclusion will be

expanded to include married and individuals living on their own; and 5) back payments will not be

a resource for nine months. The key changes are listed below.

Please note the effective dates are subject to the development of regulations or the modifications

to existing regulations, and the implementation of program operating procedures.

1.   Requires the Social Security Administration  (the SSA) to issue a receipt to disabled

      beneficiaries each time they report their work and earnings. (Effective no later than 1 year

      after enactment.)

2.   Allows the SSA to recover overpayments paid under one program from the benefits paid

      under another program. (Effective upon enactment, including prior outstanding overpayments.)

3.   Provides for cash benefits to be re-issued to the beneficiary/representative when an individual

      representative payee (more than 15 people) or an organizational representative payee is found

      to have misused the funds. The re-issued cash benefit is not a resource for nine months.

      (Effective for determinations of misuse on or after January 1, 1995.)

4.   Non-governmental fee-for-service organizational representative payees are to be both licensed

      and bonded (Effective the 13th month after enactment.)

5.   The SSA will perform periodic onsite reviews of all nonprofit fee-for-service payees,

      organizational payees (both governmental and non-governmental) representing 50 or more

      beneficiaries, and individual payees representing 15 or more beneficiaries. (Effective upon

      enactment.)

6.   Persons convicted of offenses resulting in imprisonment for more than one year, or fleeing

      prosecution, custody, or confinement are disqualified from service as representative payee

      and the SSA must share this law enforcement. (Effective the 13th month after enactment.)

7.   Representative payees will forfeit fee for the period of time the benefit was misused. (Effective

      180 days after enactment.)

8.   The representative payee found to have misused benefits will be liable for repayment of the

      benefits. (Effective 180 days after enactment.)

9.   Allows SSA to redirect cash benefit to local SSA office when the representative payee fails

      to provide required accounting. (Effective 180 days after enactment.)

10. Allows SSA to impose a civil monetary penalty for offenses involving misuse benefits received

      by a representative payee on behalf of another individual. The penalty equals up to $5,000 for

      each violation plus an assessment of up to twice the amount of the misused funds. (Effective

      when centralized computer files are available)

11. Allows Benefits Planning, Assistance, and Outreach (BPAO) services and Protection and

      Advocacy (P&A) systems services to be provided to additional beneficiaries (1619(b) cases,

      Extended Medicare cases, etc.) (Effective for grants, contracts, and cooperative agreements

      entered into on or after enactment.)

12. Allows employers access to the Work Opportunities Tax Credit for employees participating

      in the Ticket to Work Program, who began employment after June 30, 1999.

13. Changes the calculation of infrequent and irregular income from a monthly to a quarterly

       basis. Also would exclude from the determination of an individual’s income all interest and

       dividend income earned on countable resources (Effective to benefits payable for months

       that begin more than 90 days after enactment.)

14. Payments of past-due Social Security and SSI benefits and earned income and child tax

      credits will not be a resource for 9 months. (Effective to benefits payable on or after

      enactment.)

15. Student Earned Income Exclusion will be available to married and/or head of household

      SSI beneficiaries under 22 years of age. (Effective to benefits payable beginning 1 year

      after enactment.)

16. The SSA will exclude from the determination of income any gift to an individual for use in

      paying tuition or educational fees, just as grants, scholarships and fellowships for such use

      are currently excluded from the determination of income. These funds will not be a resource

      for 9 months after receipt. (Effective on benefits payable for months that begin more than

      90 days after enactment.)

.....  And numerous other changes.

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A detailed summary can be found at the Social Security Legislative Bulletin web site.

            [ if you have trouble locating the article, the address is -

              http://www.ssa.gov/legislation/legis_bulletin_030404.html ]

OR - the full text of the Act (H.R. 743) can be found by following these steps -

Go to "Thomas - U.S. Congress on the Internet"  

            [ if you have trouble finding the site, the address is -  http://thomas.loc.gov/  ]

Then -

In the word/phrase search box, type "Social Security"

Then -  from the items listed,

select "Social Security Protection Act of 2004 (Enrolled as Agreed to or Passed

by Both House and Senate) [H.R.743.ENR]"

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