In selecting a payee we try to select the person, agency, organization or institution that will best serve the interest of the beneficiary. In making our selection we consider—

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Terms Used In 20 CFR 404.2020

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC

(a) The relationship of the person to the beneficiary;

(b) The amount of interest that the person shows in the beneficiary;

(c) Any legal authority the person, agency, organization or institution has to act on behalf of the beneficiary;

(d) Whether the potential payee has custody of the beneficiary;

(e) Whether the potential payee is in a position to know of and look after the needs of the beneficiary;

(f) The potential payee’s criminal history; and

(g) Whether the beneficiary made an advance designation (see § 404.2018).

[47 FR 30472, July 14, 1982, as amended at 84 FR 4325, Feb. 15, 2019; 85 FR 7664, Feb. 11, 2020]