Since its establishment in 1935, the Social Security Administration (SSA) has aimed to alleviate poverty by providing benefits that support specific groups facing financial hardship. Although Social Security is most often associated with monthly retirement benefits for seniors, the SSA also manages various programs that target a broader population in need, including individuals with disabilities, survivors of deceased workers, and those with low incomes. Each program within Social Security serves a distinct purpose, helping to address different causes of financial vulnerability.
Key Social Security Programs and Their Goals
Retirement Insurance
Retirement insurance is designed to provide financial stability to individuals who have reached an age where regular employment is challenging. The program aims to prevent poverty among seniors by ensuring they have a reliable source of income after they retire.
Disability Insurance
Disability insurance supports individuals who are unable to work due to a disability or blindness. The SSA provides benefits to these individuals to help replace lost income and alleviate financial hardship due to limited employment opportunities.
Survivors Program
The survivors program is intended to support family members who relied on a deceased worker’s income. This program provides financial aid to spouses, children, and even parents who were dependent on the worker to ensure they are not left without essential financial support.
Supplemental Security Income (SSI)
SSI extends beyond retirement and disability insurance by targeting low-income seniors, disabled individuals, and children with disabilities. Applicants must meet specific income and asset criteria to qualify, distinguishing SSI from other Social Security programs.
These programs form the backbone of Social Security’s mission to reduce poverty and support the financial needs of different vulnerable populations. However, some groups, such as foster children, may still fall through the gaps, as they may not receive the financial guidance needed to manage Social Security benefits effectively.
New Changes in Social Security for Foster Youth
In a significant move to support foster youth, California Governor Gavin Newsom signed AB 2906 into law. This legislation seeks to improve how Social Security benefits are allocated to foster children, particularly those eligible for survivors and SSI benefits.
Challenges Foster Youth Face in Receiving Social Security Benefits
Foster youth eligible for Social Security benefits, such as those receiving survivor or disability-related payments, often lack the knowledge and support to manage these funds. Since minors cannot legally oversee their finances, counties or institutions caring for these children act as “representative payees.” This means they receive the Social Security checks on the children’s behalf and are responsible for managing the funds to meet the children’s needs.
Previously, counties often used these benefits to offset the costs of care, which, while beneficial, did not ensure that the children received the full benefits to help them prepare for adulthood. This lack of transparency and accessibility has left many foster youth without the financial resources they need when they leave the foster care system.
AB 2906: Providing More Accountable and Accessible Social Security Benefits
To address this oversight, AB 2906 mandates that counties set up interest-bearing accounts for foster youth receiving Social Security benefits. This ensures that their funds are preserved and available to them when they transition into adulthood. The law specifies that the money can be used for immediate critical needs, such as medical care, education, job training, or personal development, if necessary.
In addition, AB 2906 requires counties to provide ongoing education to foster youth between the ages of 18 and 21, often referred to as “nonminor dependents.” This training covers how Social Security benefits work and helps these young adults understand their eligibility and rights. The goal is to equip foster youth with the knowledge and skills needed to manage their finances independently and continue receiving any benefits for which they qualify.
How This Change May Impact Foster Youth Outcomes
AB 2906 marks a significant step in creating a more equitable system for foster youth in California by ensuring they have access to the financial resources meant to support their development. The focus on education and financial management will help these young people build a foundation for financial independence, reduce their likelihood of experiencing poverty as adults, and better position them for a successful transition to self-sufficiency.
Who qualifies as a nonminor dependent in California?
A nonminor dependent in California is typically an individual between the ages of 18 and 21 who remains in the foster care system. They are eligible for continued support and may receive financial and educational resources to help them transition to independent living.
What are representative payees, and how do they work?
Representative payees are individuals or organizations appointed to manage Social Security benefits for recipients who are unable to handle their own finances. This arrangement is common for minors, including foster youth, to ensure their benefits are used appropriately for their well-being.
How will AB 2906 impact Social Security benefits for foster youth?
AB 2906 requires counties to create interest-bearing accounts for foster youth Social Security benefits, ensuring the funds are preserved for future use. It also mandates education on financial management for foster youth, helping them understand and retain eligibility for benefits as they become adults.
