As in GN 03930.060D.4.a., SSA withheld $2,600 in title II past-due benefits and the attorney had $1,000 held
in a trust or escrow account. However, the fee authorizer approved a fee of $2,500
and designated $500 of that as attributable to title XVI exclusively.
As shown, you must reduce by $500 both the amount you consider in trust or escrow
and the fee authorized for direct payment purposes from the title II benefits. Consistent
with GN 03930.060D.2.c. and GN 03930.060D.3.b. and the information provided in the fee authorization, you deduct the assessment
($77.00), certify $1,423.00 for direct payment to the representative, and release
the $1,100 remainder to the claimant. In addition, the CR releases any title XVI past-due
benefits withheld for direct payment because the representative collects the $1,000
fee balance from the trust or escrow account.
$ 2,600.
|
Amount withheld
|
|
Amount in trust or escrow
|
+ 500.
|
($1,000 -$500 for SSI)
|
$ 3,100.
|
Total available
|
- 2,000.
|
Fee authorized ($2,500 - $500)
|
$ 1,100.
|
Remainder for claimant
|
$ 2,600.
|
Amount withheld
|
- 1,100.
|
Remainder for claimant
|
$ 1,500.
- 77.00
$ 1,423.00
|
Amount for direct payment before assessment
Assessment
Amount for direct payment
|
If instead you had considered the full amount in trust or escrow ($1,000) but reduced
by $500 the fee authorized for direct payment purposes, you would erroneously certify
$1,000 for direct payment to the representative and release the $1,600 remainder to
the claimant. Although the representative could collect $1,000 from the trust or escrow
account, the claimant would have to repay the representative the $500 fee balance.
NOTE: In concurrent cases, the fee attributed only to the title XVI claim cannot be used
to lower the title II income. See GN 02610.000 and SI 02006.000.