When we refer to SPS Online or Online, we are referring to the online input screens used to establish or update SPS payments that could not be automated.

By the fee payment date (i.e., the date we “make payment” or “pays all or part of the authorized fee”), we mean the date that the SPS or the Modernized Supplemental Security Income Claims System (MSSICS) sets the payment in PAID status.

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  When fee payment is initiated through the Modernized Claims System (MCS), the Manual Adjustment Credit and Award Processes (MADCAP) or MSSICS, the payment date (i.e., the date on which the payment is set in PAID status) is the day or the day after the input action is processed.

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  When fee payment is issued Online (manually) and set to PAID, the payment date is the day that payment is set in PAID status.

Because our personnel must input information instructing the system to make the direct payment, the payment date is not the date of the notice generated in connection with the fee payment, nor is it the date the Department of the Treasury issues the actual check.

By decision, we mean an initial or reconsidered determination or a decision made by an Administrative Law Judge or the Appeals Council.

When we directly pay a representative, or entity eligible for direct payment, based on an approved fee agreement, SPS:

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  applies the flat rate cap based on the annual cost of living adjustment in calculating the assessment and deducting it from the fee amount payable directly to the representative or entity, regardless of any user fee payments already on the SPS database (i.e., SPS will apply the flat rate cap based on the annual cost of living adjustment without regard to any earlier assessment); and

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  imposes the flat rate cap based on the annual cost of living adjustment on the first fee we pay directly to a representative or entity.

Except for situations identified in GN 03920.019F, no manual intervention is necessary to make direct payment and deduct the capped assessment for initial awards processed through MCS or MADCAP. MCS will automatically include the ATY016 paragraph in the claimant's notice and complete the fill-ins to explain the assessment. For claims processed through MADCAP, the universal text identifier (UTI) for the notice language is now ATY016. (Refer to NL 00720.050 for the fee notice assessment language.)

When SPS processes direct payment to a representative or entity in conjunction with a B or C award, it will withhold only the difference between the flat rate assessment cap based on the annual cost of living adjustment and the assessment paid amounts on the SPS database, not to exceed 6.3 percent of the fee amount paid from any auxiliary's past-due benefits. (Refer to GN 03940.053F.3 if we paid a portion of the fee from the primary claimant's past-due benefits before September 1, 2004.)

Refer to GN 03920.019F for situations in which the SPS-calculated assessment must be overridden because the automated SPS process will deduct an incorrect assessment amount.

It is necessary to include language in the fee notice to correctly reflect the assessment situation. When all fee actions on the claim are processed and we previously withheld an assessment on that claim, in the fee notice, use:

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  ATY066, when we previously assessed less than the flat rate cap based on the annual cost of living adjustment (see NL 00720.050); and

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  UTI ATY071, when we previously assessed the maximum fee (see NL 00720.050).

When we simultaneously pay two or more representatives based on an approved fee agreement, including in situations where one or more of the representatives validly assigns direct payment of their fee to an eligible entity or entities, the representatives share the fee equally. SPS divides the assessment by the number of representatives receiving direct fee payment and deducts that amount from each direct fee payment. Multiple representative cases must be processed by SPS Online. UTI ATY065 explains the assessment in the fee notice (see NL 00720.050). If all representatives assign direct payment to the same entity, the user fee will be automatically deducted once from the payment to the entity. Manual processing will not be required.

EXAMPLE: We favorably decided the claim and approved the fee agreement signed by two representatives in the same firm. The claimant's past-due benefits totaled $10,800 and the fee under the approved agreement was $2,700. We authorized each representative to charge and collect $1,350 ($2,700 divided by 2). If the flat rate cap based on the annual cost of living adjustment is less than 6.3% of $2,700, the flat rate cap based on the annual cost of living adjustment applies. The representatives share the assessment equally (i.e., each receives one-half of the total direct payment amount less one-half of the assessment). We pay $1,350 less one half of the flat rate cap based on the annual cost of living adjustment to each representative. UTI ATY065 explains the assessment in the fee notice (see NL 00720.050). If both representatives had assigned direct payment to the same entity, we would automatically pay the entire amount to the entity less the user fee.

Some situations require manual intervention to override SPS's automated assessment calculation and deduction. These situations are identified in GN 03920.019F.

For DOFA cases, Claims Specialists (CS) follow existing procedures to process the case through MCS unless there is an MCS processing limitation.

If the claim cannot be processed using MCS, prepare an A101 or EF101. On the BCF/Remarks/Notice (BCRN) screen, enter the benefit continuity factors (BCF); the remark “Fee Agreement Case” and the name and address of the representative(s); and, in the NOTICE field, the MADCAP assessment paragraph for inclusion in the award notice. Refer to GN 03920.019F for the MADCAP paragraphs.

Follow existing procedures to process non-DOFA claims. If the claim requires special assessment processing (refer to GN 03920.019F), transfer the claim to the processing center (PC) for action using the modernized development worksheet (MDW).

Except in those situations identified in GN 03920.019F, SPS correctly calculates and deducts the assessment when we pay a fee. When the case is an initial award processed through MCS, with one representative or entity receiving direct payment, MCS automatically includes ATY016 in the notice. For initial award non-MCS cases that do not require override, request UTI ATY016.

When multiple representatives or entities who are eligible for direct payment are involved, input code “01” (multiple representatives) in the Attorney Payment Indicator field on the ATT screen through MACADE, which will generate a PCACS alert. This input is not necessary if there are multiple representatives who all assigned direct payment to the same entity. When you receive the PCACS alert, but not before, process the payments in SPS (see SM 00834.200). SPS will divide the assessment equally between or among the representatives who receive direct payment.

Request UTI ATY065 to explain the assessment deduction.

Follow the procedure in GN 03940.053F.6 to override the SPS-calculated assessment. Manually calculate the assessment at 6.3% of the fee amount payable or the flat rate cap based on the annual cost of living adjustment, if lower. See GN 03920.019 for an explanation of the policy.

Request UTI ATY016 to explain the assessment deduction applied to the additional fee payment.

Follow the procedure in GN 03940.053F.6 to override the SPS-calculated assessment. Manually calculate the assessment at 6.3% of the fee amount payable or the flat rate cap based on the annual cost of living adjustment, if lower. See GN 03920.019F for an explanation of the policy.

Request UTI ATY016 to explain the assessment deduction.

Follow the procedure in GN 03940.053F.6 to override the SPS-calculated assessment. Recalculate to deduct from the current fee payment no more than the difference, if any, between the flat rate cap based on the annual cost of living adjustment and the assessment previously collected. See GN 03920.019F for an explanation of the policy.

Request UTI ATY066 or ATY071 to explain the assessment deduction or why no assessment was deducted.

To override the SPS-calculated assessment, take the following MADCAP/SPS Online (manual) actions:

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  Refer to the SPS or PHUS query, as necessary, to determine whether there has been a previous assessment.

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  Manually calculate the correct assessment.

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  For MADCAP actions ONLY, input code “03” (standard user fee does not apply) in the MACADE Attorney Payment Indicator field on the ATT screen to put a hold on the fee payment (see SM 00834.200).

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  The next day, access the SPS Payment Transaction Menu (SPPT) and in the Choose Option field, select 2 – “Update,” to update a previously established representative fee record in payment held status. (This takes you to the Attorney Fee Payment (also for eligible non-attorney payment) (APAY) screen.)

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  On the APAY screen, if multiple representatives or entities eligible for direct payment are involved, enter the number of representatives in the “Number of Attorneys” field, which will have been pre-filled with “01.” (The completed APAY screen leads to the Payment Action (PACT) screen.) Also change the “Repeat (Y/N) of “N” to “Y” except for the last APAY action, to allow SPS to display another APAY screen after the Payment Action. (Do NOT include a non-attorney who is eligible for direct payment in the “Number of Non-attorneys” field.)

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  On the PACT screen, override the calculated assessment in the “User Fee” field (9-M) with the manually calculated assessment; select Payment Action 1, Issue Check.

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  Return to SPPT screen. The SPPT screen appearance indicates that the fee will be paid that evening.

Refer to MS 05701.001 and SM 00834.000 for guidance on using SPS.