Does the US government authorize the selling of future Social Security
payments to a 3rd party for a lump sum?  For example, if a retired
person currently receives $500/month ($6K/yr.), is there any way for
them to sell the rights to, say, 3 yrs. worth of future Social
Security payments from the government for $18,000 now? (or some
reasonably discounted amount).  Risks/life expectancies aside, is this
legal, and if so, are there banks/organizations that specialize in
such transactions?

bizdow --

I can best answer your question by pointing you to some clear
provisions of the Social Security Act, the regulations adopted to
implement it, and the Social Security Administration's "Program
Operations Manual" used to guide the agency's staff.

Section 207 of the Social Security Act responds directly to your
question, stating:

"The right of any person to any future payment under this title shall
not be transferable or assignable… ." and "none of the moneys paid or
payable … shall be subject to … legal process."   Social Security Act,
P.L. 74-271, 49 Stat. 620 (1935), Section 207

Here is a link to the complete text of that section:
Social Security Act: Assignment
http://www.ssa.gov/OP_Home/ssact/title02/0207.htm

Although the answer to your question appears to be stated clearly by
the plain language of this sweeping statutory provision, I must make
the disclaimer, for the record, that my answer is not intended as
legal advice and should not be interpreted as such.


Further corroboration of this interpretation of the agency's statute
is provided in Section 404.1820 of the Social Security
Administration's Rules, which states:
 "(a) We shall not certify payment to -- (1) any person designated as
your assignee or transferee; or (2) [a]ny person claiming payment
because of … legal process."  Title 20, Code of Federal Regulations,
Part 404

Here is a link to the complete text of that section of the agency's
rules:
Transfer Or Assignment Of Payments 
http://www.ssa.gov/OP_Home/cfr20/404/404-1820.htm


Finally, Section GN 02410.001 of the Social Security Administration's
Program Operations Manual includes, among other things, the following
instructions for its staff:

It defines an "assignment" that is prohibited as "transfer of the
right to, or payment of, benefits to a party other than the
beneficiary… ."  (GN 02410.001, Section B1) and it instructs agency
employees  to "not pay benefits to anyone other than the beneficiary…
."  GN 02410.001, Section D1.

Here is a link to the complete text of this section of the Program
Operations Manual:
Assignment
http://policy.ssa.gov/poms.nsf/lnx/0202410001


I trust that this answer gives you all the information you need. 
Questions about the legal interpretation of its governing statute and
rules can also, of course, be directed to the Social Security
Administration. Here is a link to the contact information for the
agency:
How To Contact Us
http://www.ssa.gov/reach.htm


Search Strategy:

Navigation around the website of the Social Security Administration:
http://www.ssa.gov

Google searches using various combinations of the terms "social
security" "section 207" "404.1820" assignments transfers illegal


If any of the above is unclear, or if any of the links don't work,
please post an answer clarification request.

markj-ga

Exactly what I was looking for.  Thanks.