Effective with the implementation of the Title 2 Redesign Release 3 (T2R3) on June 21, 2004, in fee petition cases, the primary claimant pays the authorized fee from his/her 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, under the circumstances listed below, the benefit authorizer (BA) or benefit technical examiner (BTE) 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.

SSA prorates the excess if:

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  SSA certifies direct payment of all or part of the representative's fee;

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  there is no need to continue withholding (e.g., for administrative review, or for possible direct payment of a fee a Federal court authorizes under § 206(b) of the Social Security Act) and the authorized fee was more than the amount SSA withheld from the primary claimant’s past-due benefits;

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  SSA 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.

Effective June 21, 2004, 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.

Prior to the implementation of T2R3 on June 21, 2004, in fee petition cases, the benefit authorizer (BA) or benefit technical examiner (BTE) prorated the excess past-due benefits withheld (based on each beneficiary's proportionate share of the total) if:

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  SSA certified direct payment of all or part of the attorney representative's fee;

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  there was no need to continue withholding (e.g., for administrative review, or for possible direct payment of a fee a Federal court authorizes under § 206(b) of the Social Security Act);

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  SSA had to release the funds remaining to the claimant, and one or more auxiliary beneficiaries; and

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  there was more than one family unit. As GN 03920.050F. explains, the BA/BTE did not prorate when all beneficiaries live in one household.

NOTE: Prior to February 28, 2005, SSA made direct fee payment only to attorneys.

Prior to June 21, 2004, Steps 1-8 were followed to determine how to release the excess past-due benefits withheld. In the example shown, HB2 was working.