The claims specialists (CS) in the field office (FO), the program service centers (PSC), and the Office of Central Operations adjudicate Title II claims involving representatives who petition to obtain our approval of fees for their services. The procedures below, and in the two next sections, highlight the key CS responsibilities based on the processing system: the Modernized Claims System (MCS) or the Manual Adjustment, Credit, and Award Processes (MADCAP). The instructions in this section apply to all cases where there was one or more appointed representatives eligible for direct payment, there is no approved fee agreement, and at least one eligible representative did not waive their fee or right to direct payment of their fee. Refer to GN 03930.015 for information about which office has jurisdiction to authorize a fee under the fee petition process.

For those cases in which the representative is eligible for direct fee payment and the representative did not waive a fee or the right to direct payment of a fee, including cases with a valid assignment (see GN 03920.021), MCS and MADCAP propagate representative information into the Single Payment System (SPS) for creation of a payment record. For fee petition cases, the action will hold (i.e., pend) payment in SPS until action is taken to release the representative fee (i.e., the fee is authorized and input). See GN 03920.017C., Direct Payment to Representatives – Title II Cases.

The CS must refer to Program Operations Manual System (POMS) or Modernized System Operations Manual (MSOM) sections for complete instructions about processing limitations or exclusions and coding required entries.

The CS (or other processing center (PC) position designated to perform these functions) must:

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  prepare any necessary forms and make data entry necessary to use the most expeditious processing system available;

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  ensure that we withhold funds from past-due benefits for possible direct payment, when required;

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  provide correct notice to the claimant and the claimant's representative; and

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  set the diary for receipt of the fee petition or fee authorization when we are withholding past-due benefits for possible direct payment to a representative or to an entity if there is a valid assignment (see GN 03920.021). For information about setting this diary, refer to GN 03930.045.

Some characteristics currently prevent final claims processing through MCS using its earnings computation (EC) screens. Refer to MS 03504.002, MS 03504.003, and SM 00834.900 for MCS processing limitations.

Determine a representative's and, if there is a valid assignment, the entity's eligibility for direct fee payment as follows:

1. 1. 

   Review GN 03920.016 to determine if the representative is eligible to receive direct payment. If the representative is eligible and assigned direct payment to an entity, review GN 03920.021 to determine if the entity is eligible to receive direct payment.

2. 2. 

   If the representative is a non-attorney, check Registration, Appointment and Services for Representatives (RASR) to determine if the representative is eligible to receive direct payment.

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     If the representative states that they are eligible for direct payment but they are not listed on that date, take the action in GN 03930.035D.4.

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     If the representative did not state they are eligible for direct payment and they are not listed, go to GN 03930.035E.

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     If the representative is listed, proceed to GN03930.035D.3.

3. 3. 

   If RASR indicates the representative is eligible to receive direct payment and they have not waived direct payment, verify that the claimant and the representative both signed the Form SSA-1696 (Claimant's Appointment of a Representative). If yes, go to GN 03930.035E. If not, request the representative submit a copy of the previously filed Form SSA-1696 signed by both the claimant and representative.

4. 4. 

   If the representative is a non-attorney who states they are eligible for direct payment, but RASR shows the non-attorney representative is not eligible for direct payment, notify the representative that we cannot make direct payment (using the following model language), send a copy to the claimant and go to GN 03930.035E.

Model language to use in these situations follows:

You advised your client, (beneficiary's name), and indicated on the Form SSA-1696 (Claimant's Appointment of a Representative) that you are eligible to have your approved representatives' fees withheld and paid directly from the claimant's past-due benefits. However, [select the conclusion that describes the status]

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  you are not eligible to receive direct payment of your fees from the claimant’s past-due benefits, or

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  you did not become eligible to receive direct payment of your fees from the claimant’s past-due benefits until after we effectuated the favorable decision on your client's claim, or

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  you failed to maintain your eligibility to receive direct payment of your fees from the claimant’s past-due benefits and were no longer eligible on the date we effectuated the favorable decision on your client's claim.

Accordingly, we will not pay any authorized fee directly to you. You should look to the claimant for payment of the fee authorized in this case.

See GN 03920.017C, Policy – Direct Payment to Representatives in Title II Cases.

The following sections provide specific instructions for related CR or CA/CTE functions.

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  GN 03910.040H through GN 03910.040J FO or PC actions on receiving the Form SSA-1696 (Claimant's Appointment of a Representative)

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  SM 00842.016 Coding the Atty/Rep/ALJ Name and Address Screen when sending a copy of the MADCAP notice to the attorney/representative

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  SM 00834.000 MCS and MADCAP propagation into SPS

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  MS 03509.009 Check/Notice 2 (NOT2)

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  MS 03510.003 Reconsideration Request 1 (RCN1)/FEDRO Review (FDR1)

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  MS 03510.005 Hearing Request 1 (HNG1)

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  MS 03510.006 Hearing Request 2 (HNG2)

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  MS 05701.006 Using SPS

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  GN 03910.050 Contacting a represented claimant

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  GN 03920.020D.3 FO or PC action when representative waives a fee

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  GN 03930.025 Receipt and routing of fee petitions