TN 32 (12-24)

GN 03930.070 Title II - Prorating Excess Past-Due Benefits Withheld for Payment to Auxiliary Beneficiaries

A. Policy

In fee petition cases, the primary claimant pays the authorized fee from their withheld past-due benefits to the maximum extent possible. Then, if two or more auxiliaries are involved and a portion, but not all, of their withheld past-due benefits are used to pay all or part of the remainder of the authorized fee directly to the representative, or entity if there is a valid assignment see GN 03920.021, under the circumstances listed in this subsection, the benefit authorizer (BA) prorates the excess past-due benefits withheld from the auxiliary beneficiaries. The proration is based on each auxiliary beneficiary's proportionate share of the difference between the total fee and the amount withheld from the primary claimant’s past-due benefits.

We prorate the excess if:

  • We certify direct payment of all or part of the authorized fee;

  • There is no need to continue withholding (e.g., to pay another eligible representative(s) who files a fee petition, for administrative review, or for possible direct payment of a fee a federal court authorizes) and the authorized fee was more than the amount we withheld from the primary claimant’s past-due benefits;

  • We must release the funds remaining to two or more auxiliary beneficiaries; and

  • All auxiliaries do not live in the same household.

NOTE: We do not prorate the excess withholding when all auxiliary beneficiaries live in one household.

B. Procedure

Follow steps 1-9 to determine how to release the excess past-due benefits withheld. In the example shown, the authorized fee is $9,732; 25 percent of the primary claimant’s past-due benefits is $7,288, and HB is working.

Step

Action

 

Example

1

Add the amount of past-due benefits withheld from each auxiliary beneficiary.

  $ 860.

+2,784.

$3,644

HB’s withholding

HC1’s withholding

Sum of withholding from auxiliaries (HB & HC1)

2

Determine the direct payment amount not satisfied by the primary claimant’s withheld past-due benefits (i.e., determine the fee amount the auxiliaries will pay).

$9,732.

- 7,288.

$2,444

Authorized fee

Primary claimant’s withholding

Fee amount auxiliaries to pay

3

Determine the auxiliaries’ excess withholding: difference between the amount withheld from the auxiliary beneficiaries (from Step 1) and the direct payment amount the auxiliaries to pay (from Step 2).

$3,644

- 2,444

$1,200

 

Amount withheld HB & HC1

Amount HB & HC1 to pay

Excess withholding

4

Find each auxiliary beneficiary's percentage of the total past-due benefits withheld from auxiliaries: divide the amount of past-due benefits withheld from each beneficiary by the total past-due benefits withheld from all auxiliaries (from Step 1). Carry your result to four decimal places, and do not round.

$ 860

$3,644

 

$ 2,784

$ 3,644

 

= .2360 for HB

 

 

= .7639 for HC1

 

 

.

5

Determine the approximate refund amounts: multiply the total excess withheld from all auxiliaries (from Step 3) by each beneficiary's withholding percentage (from Step 4). Repeat for each beneficiary.

$ 1,200 23.60% = $283.20 for HB

 

$ 1,200 76.39% = $916.68 for HC1  

 

6

 

 

 

Add the approximate refund

amounts (from Step 5).

 

 

$ 283.20

+ 916.68

$1,199.88

 

HB

HC1

Sum

7

 

 

 

From the excess withheld (from Step 3),

subtract the sum from Step 6.

 

 

$ 1,200.00

- 1,199.88

 $     .12

 

Excess

Sum

Remainder

 

8

Add any remainder (from Step 7) to the approximate refund amount (from Step 5) of the first auxiliary in alphabetical order based on the beneficiary identification codes (e.g., B; if no B, then C1; etc.).

$ 283.20

+ .12

$283.32

HB's approx. refund

Remainder

HB's actual refund

 

9

 

 

The sum of the resulting refund amounts will equal excess withheld from all auxiliaries.

$ 283.32

+916.68

$1,200.00

HB’s actual refund

HC1’s actual refund

Total excess refund

 


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0203930070
GN 03930.070 - Title II - Prorating Excess Past-Due Benefits Withheld for Payment to Auxiliary Beneficiaries - 12/09/2024
Batch run: 12/09/2024
Rev:12/09/2024