Governor Kim Reynolds says Iowa has set up a system so Social Security Survivor Benefits that Iowa kids in foster care receive are invested and available for them when they turn 18 and are no longer in the foster care system.
“Today, by us doing this, Iowa actually become the 31st state in the country to make this transition, to make sure those children are keeping those funds,” Reynolds said during a news conference this morning.
Social Security Survivor Benefits are for the immediate family members of an eligible Social Security recipient who has died. Iowa, like most states, used those payments for foster care kids to help cover the stipends paid to foster care parents. Reynolds said the change is one of First Lady Melania Trump’s policy initiatives. “Melania really challenged states to think about setting these children up so they could be successful in the future, that that is their benefit, that is should be set aside for them so that especially when they transition out (of foster care) that they have some funding there to be self-sufficient,” Reynolds said, “to be able to put a downpayment on a home or to continue their education or training.”
Under the new system, Social Security Survivor Benefits for Iowa foster care children can be directed into an array of accounts, including 529 plans to save money for college, so-called I-ABLE accounts for minors in foster care with a disability or into the new “Trump Accounts.” “We stood up the ‘First Home’ accounts. Is that something that we could put it in so they’ve a downpayment for a home?” Reynolds said. “…They could transfer it into a Roth IRA, so there’s different options for them, to make sure we’re really tailoring it for the needs of the child.”
State officials do not have a count on how many Iowa children in foster care quality for Social Security Survivor Benefits, but they say it’s a small percentage of the 3700 children in Iowa’s foster care system. The new diversion of Social Security Survivor Benefits into investments will not affect the stipends paid to foster care parents.