Protective Payments 400-19-120-35

(Revised 10/1/15 ML #3459)

View Archives

 

 

(N.D.A.C. 75-02-01.2-69(2))

 

While Protective Payments are optional, they are an alternative to issuing benefits directly to recipients.  Protective payments direct a recipient’s assistance benefits to a third party, referred to as a Protective Payee, rather than the recipient. The Protective Payee is responsible to pay for the recipient’s needs up to the amount of the benefit.

 

When the Primary Individual (PI) does not have a Social Security Number, a benefit cannot be deposited onto the Reliacard. In these situations, a Protective Payee should be utilized.

 

Protective Payments allow the TANF Eligibility Worker, under certain conditions, to request a third party to act for the recipient in receiving and managing payments. This departure from the unrestricted money payment principle can be used in any of the following circumstances:

  1. The primary individual has demonstrated such inability to manage funds that the health and safety of the child(ren), themselves, or other household members are being seriously compromised; or
  2. The primary individual has failed, without "good cause," to cooperate with Child Support Enforcement and/or JOBS; or
  3. The primary individual is administratively disqualified for fraud.

 

When the Protective Payment method is utilized, the TANF Eligibility Worker and the recipient must agree on the selection of the designated payee. If they are unable to agree on the selection or a protective payee cannot be secured, the TANF Eligibility Worker may continue to make the TANF payment to the primary individual.

 

The Protective Payment is designed for TANF recipients who have the capacity to learn to manage their funds more efficiently. This method should not be utilized for a period of more than 2 months, while the individual is receiving services to improve money management (attending budget counseling, instructions on purchasing necessary items, etc.). See Section 400-19-120-55, Services to Improve Money Management.

 

When a primary individual has failed, without “good cause”, to cooperate with Child Support Enforcement and/or JOBS or is administratively disqualified for fraud, the Protective Payment method may be utilized for longer periods. The Protective Payee method is not intended for recipients whose limitations will likely prevent them from learning how to manage their own affairs. In these situations, long term assistance should be pursued from outside agencies to assist the individual in managing their benefits.