Federal Benefits for Youth in Foster Care

Under current law, certain federal agencies appoint a representative payee or fiduciary (representative payee) to receive and manage federal benefits on behalf of a child or youth in foster care. If a child or youth may be eligible for federal survivor benefits and the county department is the most appropriate representative payee, the act requires the county department to apply for federal survivor benefits on behalf of the child or youth. If the county department determines that the child or youth may be eligible for federal survivor benefits but that the county department is not the most appropriate representative payee, the county department shall provide information to the prospective representative payee that the county department has identified about how to apply for federal survivor benefits on behalf of the child or youth and how to become the child's or youth's representative payee.

Under current law, a county department serving as a representative payee may use federal benefits to offset the cost of providing basic care and services to a child or youth in foster care. The act prohibits this offset practice with respect to federal survivor benefits. Instead, the act directs a county department serving as a representative payee to establish an account for the federal survivor benefits (account). A county department serving as a representative payee must save money in the account for the needs of the individual child or youth. Once the child or youth leaves foster care, the county department is required to release funds in the account to the child or youth.

The act sets forth various accounting and notice requirements related to federal survivor benefits and requires the department of human services (department), in consultation with interested stakeholders, to adopt rules providing guidance for county departments. The guidance extends to procedures for identifying a representative payee, county department responsibilities when federal survivor benefits are denied or when a child or youth leaves foster care, and policies governing the establishment and maintenance of an account for federal survivor benefit funds. The department must provide technical assistance to a county department about how to conserve federal survivor benefit funds in the best interests of an individual child or youth. (Note: This summary applies to this bill as enacted.)