TN 50 (12-24)

GN 03940.010 Receipt of the Fee Agreement in the Field Office and Processing Center

A. General

Upon receipt of a fee agreement, document the date of receipt (date stamp, etc.) and determine whether you have jurisdiction over the claim,post-entitlement, or post-eligibility (PE) action. If you do not have jurisdiction, forward the fee agreement to the proper component (preferably as an email attachment).

B. Field Office Jurisdiction - Pending Claim or PE Action

When the field office (FO) receives a fee agreement and has jurisdiction over the claim or PE action, the claims specialist (CS) must:

  1. 1. 

    Ensure the agreement is date-documented.

  2. 2. 

    Determine whether the file contains a Form SSA-1696 (Claimant's Appointment of Representative) completed and signed by both the claimant and the representative and whether the representative validly assigned direct payment of the authorized fee to an entity as set forth in GN 03920.021. Verify that the Form SSA-1696 has been documented in the Registration, Appointment, and Services for Representatives (RASR) application.

    NOTE: The mandate for all representatives to use Form SSA-1696 became effective December 9, 2024. Before that date, to accept an appointment, representatives were free to use another writing that clearly indicated the claimant's intent to appoint the representative and was signed by the claimant, and, if the representative is a non-attorney, the representative. For cases where the appointment is earlier than December 9, 2024, CSs will confirm that the file contains a valid appointment as required at the time of appointment, meaning either a Form SSA-1696 or another writing that meets the criteria just described.

  3. 3. 

    Determine if the representative is eligible to receive direct payment of the fee (see GN 03920.016) by checking RASR. Record the information on the applicable Development Worksheet screen as necessary and appropriate. For non-attorney representatives, record the following based on the type of case being processed on the applicable Development Worksheet:

    ISSUE - EDPNA (stands for "eligible direct payment non-attorney")

    REC - Input date of verification

    REMARKS - Based on information on the list, type "Eligible for Direct Payment" (or "EDP"), "Not eligible for direct payment" (or "NEDP"), or "Not on list."

    If the non-attorney representative is eligible for direct payment, the NOT2 screen should show “Eligible for Direct Pay Non-Attorney.” If the non-attorney representative is not eligible for direct payment at the time the claim is being processed, verify that the Appointed Representative type on the NOT2 screen shows “2,” “non-attorney.” Make any changes or corrections in RASR.

    If the representative validly assigned direct payment of the fee to an entity, determine if the entity is eligible to receive direct payment. Verify through RASR that the entity is registered and has not been placed on the Ineligible for Direct Payment Entity (IDPE) list.

  4. 4. 

    Representatives whom we determine are eligible for direct payment may receive direct payment in a case only if the representative has entered into an agreement with the claimant for representation, regardless of whether the appointment is still valid. Verify that the claimant and the representative completed and signed the Form SSA-1696 (or other writing for appointments that predate December 9, 2024) and that the form is in the file. If the form is not in the file, request the representative submit a copy of the Form SSA-1696 (or other writing for appointments that predate December 9, 2024) that meets the relevant signature requirements (see GN 03910.040).

  5. 5. 

    If a non-attorney representative states they are eligible to receive direct payment, but our records establish that the representative is not eligible, advise them that they are not eligible for direct payment. Model language to use in these situations is as follows:

    You advised your client, (claimant's name), and indicated on the signed Form SSA-1696 [or a written statement appointing the representative] that you are eligible for direct payment. Under Titles II and XVI of the Social Security Act, certain non-attorney representatives have the option to have an approved representative's fee withheld and paid directly from a claimant's past-due benefits. However, [select the correct conclusion]

    • you have not been found eligible to receive direct payment or

    • you failed to maintain your eligibility for direct payment.

    Therefore, if we later approve the fee agreement between you and your client and authorize a fee, we will not directly pay the fee to you unless SSA determines that you are eligible for direct payment before we release withheld past-due benefits. Therefore, unless your eligibility changes, you will have to look to your client for payment of any fee authorized in this case.

    Refer to GN 03920.018E.2. to verify direct payment eligibility of a non-attorney representative. If technicians believe a non-attorney representative intentionally misrepresented their eligibility for direct payment or if the non-attorney representative continues to submit direct payment information for other claims, refer to GN 03970.017B., and GN 03970.017C., for possible referral to the Office of the General Counsel. For instructions about Disability Determination Services representative misconduct referrals, see DI 31001.010D.

  6. 6. 

    For an Electronic Disability Collect Systems (EDCS) case, ensure that the "Representative Involved" flag is selected. Complete Form SSA-1128 (Representative Involved) as appropriate and staple it to the outside lower right of a paper claim(s) file(s). (See GN 03910.040F.2.)

  7. 7. 

    Ensure the representative's name and address are documented in RASR as required in GN 03910.040F.2. Enter the representative's information on any auxiliary claims and/or the eligible spouse's claim also if the auxiliaries or spouse are not independently represented.

  8. 8. 

    In concurrent Titles II and XVI claims, upload the fee agreement to the certified electronic folder (CEF) in eView or the Evidence Portal. For non-CEF cases, ensure the fee agreement is loaded to Evidence Portal. If the CS is processing a favorable decision on a concurrent claim, follow GN 03940.050 and MS 00302.014.

  9. 9. 

    If the CR is processing a favorable determination or decision (hereinafter we generally refer to both as a “decision”) on a Title II claim, follow GN 03940.015, MS 03508.004 and MS 03509.009, to process the fee agreement. If the CS is processing a favorable decision on a Title II PE action, follow GN 03940.015G.

  10. 10. 

    If the CS is processing a favorable decision or PE action on a Title XVI claim, follow GN 03940.046, SM 01901.950, MS 00302.012, MS 00302.013, and MS 00302.014 to process the fee agreement.

C. FO Jurisdiction — Fee Agreement Received after Systems Input to Pay but before Notice of Favorable Decision Issued

1. Title II Claim

When the FO CS receives a fee agreement after the favorable decision has been input into the system on a Title II only claim or the Title II portion of concurrent claim, but before we issue the Title II notice of favorable decision, the CS will:

  • Take the actions described in GN 03940.010B.

  • Upload the fee agreement and the fee agreement determination to the Evidence Portal.

  • Notify the PC and include a brief explanation of the situation and a reference to GN 03940.001B. and request that the material be directed to CA PROC for issuance of a corrected notice with appropriate fee agreement language, including the fee agreement determination, any past-due benefit and authorized fee amounts, and right to request administrative review.

If the PC receives the fee agreement determination in time to incorporate the action into the award notice, it will do so. However, in most cases, once the Earnings Computation trigger is done, the PC will not receive the fee information in time to correct the initial notice to the claimant to reflect the determination on the fee agreement. In such a case, the PC must issue a corrected award notice to reflect our approval or disapproval of the fee agreement and, if the decision maker approved the fee agreement, information on the payment of the fee.

2. Title XVI Claim

When the Title XVI claim is adjudicated favorably, or when a claim was previously denied and the appeal reverses that denial with a partially or fully favorable decision, we issue the automated SSI Notice of Award (SSA-8025) the same day the Title XVI claim is adjudicated (i.e., there are no days in between adjudicating the claim and preparing the Notice of Award), unless the user suppressed the automated notice. If the user suppressed the automated notice, so that the fee agreement receipt date is prior to the date of the award notice, the CS will:

  • Take the actions described in GN 03940.010B.

  • Issue a fee notice to reflect our approval or disapproval of the fee agreement and information on the payment of the fee.

  • Take the actions described in GN 03940.010B.

  • Issue a fee notice to reflect our approval or disapproval of the fee agreement and information on the payment of the fee.

NOTE: An automated fee notice will be produced when the fee is approved/resolved. See GN 03940.046C and MS 00302.014 to determine if automated or manual processing is needed.

3. Concurrent Title II and Title XVI Claims 

In concurrent Titles II and XVI claims, the PC will issue the notice to reflect our approval or disapproval of the fee agreement. If the PC approves the fee agreement, the PC CS issues a fee notice to advise the claimant and the representative of:

  • The amount of the fee authorized based on the Title XVI past-due benefits, and

  • The fee payment.

    NOTE: An automated Title XVI fee notice is produced when the fee is resolved. See GN 03940.050C for information regarding when manual processing is necessary. 

D. Fee Agreement Received in the PC - Pending Claim

When the PC receives a fee agreement and has jurisdiction over the claim, process the fee agreement as described in GN 03940.020 or GN 03940.025.

E. Fee Agreement Received After We Made a Favorable Decision

When the FO or PC receives a fee agreement after we made a favorable decision (See GN 03940.001B. for the definition of “date SSA makes a favorable decision”), the FO or PC will:

  • Determine who made the decision on the claim; and

  • Refer the fee agreement to the decision maker for a determination disapproving the fee agreement.

EXCEPTION: If the PC receives the fee agreement on concurrent Titles II and XVI claims or a Title II only District Office Final Authorization (DOFA) claim, the PC technician will disapprove the fee agreement.

F. Received After We Made an Unfavorable Decision

When the FO or PC receives a Form SSA-1696 or a fee agreement after we made an unfavorable decision, the FO or PC will:

  • Determine the location of the claim(s) file if paper;

  • File the fee agreement in the claim(s) file if it is paper or ensure it is loaded to eView for a EDCS case. Always ensure the agreement is also loaded to Evidence Portal;

  • Annotate the SSA-1128 if there is a paper file (see GN 03910.040H.7. for instructions regarding the SSA-1128.) or select the “Representative Involved” flag for an EDCS case;

  • Ensure that the representative's name and address are documented in RASR as described in GN 03910.040F.2.;

  • If handled in the PC, send a copy of the fee agreement to the FO so that the Title XVI CS can document the Supplemental Security Record (SSR) regarding the representation in the event the denial is reversed on appeal; and

  • Take no further action on the fee agreement.

Do not return the fee agreement to the claimant or the representative. The claimant may file an appeal, at which time the fee agreement will be material. Add the fee agreement to the claim(s) file. 

NOTE: If the system reflects the representative's appointment prior to receiving the fee agreement, no further systems input is required relative to the fee agreement unless, and until, the claimant appeals the unfavorable decision.

 


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0203940010
GN 03940.010 - Receipt of the Fee Agreement in the Field Office and Processing Center - 12/09/2024
Batch run: 12/09/2024
Rev:12/09/2024