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:
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•
We certify direct payment of all or part of the authorized fee;
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•
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;
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•
We must release the funds remaining to two or more auxiliary beneficiaries; and
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•
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.