Effective Dates: 12/09/2024 - Present

Identification Number:
GN 03930 TN 32
Intended Audience:See Transmittal Sheet
Originating Office:OARO OAO
Title:Fee Authorization Under the Fee Petition Process
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 039 – Representation and Representative's Fee

Subchapter 30 – Fee Authorization Under the Fee Petition Process

Transmittal No. 32, 12/09/2024

Audience

PSC: BA, CA, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS;
OCO-OEIO: BIES, BTE, CIES, CR, CTE, PETL, RECONR, RECOVR;
OCO-ODO: BTE, CR, CST, CTE, CTE TE, DS, PETE, PETL, RCOVTA, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OAO

Effective Date

Upon Receipt

Background

On July 16, 2021, the United States Court of Appeals for the First Circuit issued a decision in Marasco & Nesselbush, LLP v. Collins , instructing the Social Security Administration (SSA) to find a reasonably reliable means for law firms or other entities to receive direct payment of the fees the agency authorizes to their salaried employees. On August 4, 2023, SSA published a Notice of Proposed Rulemaking (NPRM), entitled Changes to the Administrative Rules for Claimant Representation and Provisions for Direct Payment to Entities. The NPRM announced SSA’s framework for ensuring law firms and other entities could receive direct payment of the fees the agency authorizes to their salaried employees. SSA will soon publish a final rule and regulations implementing this framework.

We are preparing POMS for consistency with the framework announced in the NPRM and finalized in the Final Rule and updated regulations. The regulations provide updated definitions, updated requirements for appointing a representative and for representative and entity registration, and establish a process for representatives to assign direct payment of fees to entities. Furthermore, the regulations provide that in limited circumstances an entity’s point of contact can file a fee petition on behalf of the entity. GN 03930.020 explain those circumstances and the remaining sections include references to GN 03930.020 where appropriate. The changes to subchapter GN 03930 implement the regulatory changes and provide guidance that aligns with the changes.

This is part 2, of a larger 3-part package.

 

Summary of Changes

GN 03930.040 Title II - Providing Proper Notice in Claims Involving Representatives Who May Petition

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

GN 03930.045 Diaries for Receipt of Fee Petitions and Fee Authorizations

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.050 List of CR and CA/CTE Responsibilities for Adjudicating Title II Post-Entitlement Actions Involving Representatives Who May Petition

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.055 Benefit Authorizer Responsibilities - Overview - Fee Petition Process

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.060 Title II and Title XVI - Releasing Past-Due Benefits Withheld for Possible Direct Payment to Representative or Entity

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.065 Title II - Mode of Payment to a Representative or Entity from Past-Due Benefits

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.066 Title II - Fee Petitions – Processing the Assessment

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.070 Title II - Prorating Excess Past-Due Benefits Withheld for Payment to the Auxiliary Beneficiary(ies)

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.075 Title II - Notifying the Representative, the Claimant, and Any Auxiliary Beneficiary(ies)

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

 

GN 03930.080 Notifying Field Offices of Authorized Fees in Concurrent Claims Situations

We updated language throughout to enhance clarity, improve accuracy, and ensure consistency with post-Marasco regulatory changes. We also made minor changes throughout to remove gendered language.

GN 03930.040 Title II - Providing Proper Notice in Claims Involving Representatives Who May Petition for Fees

A. Policy

Proper notification is important to ensure that the claimant and the representative understand what actions we have taken and their respective rights and responsibilities. The claims specialist (CS) is responsible for providing proper notice in cases they adjudicate, although individual processing centers (PCs) may designate employees in other positions (e.g., the reconsideration reviewer or disability specialist) as responsible for providing notice information. The CS codes the proper notice data or directs others (e.g., the benefit authorizer (BA), benefit technical examiner (BTE), or post entitlement technical expert (PETE)) to include the correct paragraphs. The CS also designates which parties receive copies of the notice.

NOTE: Even in the limited circumstances described in GN 03930.020A when an entity’s point of contact (POC) may file a fee petition, do not send a copy of the award notice to the POC without the claimant’s written consent. For information about the assignment of direct payment of fees to an entity, including the roles and responsibilities of POCs, see GN 03920.021.

B. Procedure

Send a copy of the claimant's notice (as required by GN 03910.025A. and NL 00601.010A.4.) to the principal representative.

C. Process - Modernized Claims System (MCS)

Properly coding MCS claims will produce correct payment, a correct notice to the claimant, and a copy of the notice for the representative.

1. Check/Notice 2 Data

MCS Check/Notice 2 (NOT2) screen provides the data that notifies the system whether to withhold from past-due benefits. The system also uses the data to generate correct notices and payments.

2. Windfall Offset

If the representative (and the entity, if there is a valid assignment per GN 03920.021) is eligible for direct payment, and the representative has not waived a fee or direct payment, entering both the representative fee NOT2 data and the windfall (Title II or Title XVI) offset data by coding a “6” in the Miscellaneous Factors field on the BECF screen will produce:

  • •

    paragraphs ATY002, ATY003, ATY004, ATY005, ATY006, ATY007, ATY 011 (Attorney/Representative Fee Has Not Yet Been Authorized); and

  • •

    paragraph WFO002 (SSI Offset-Representative Involved).

Because we calculate the amount to withhold (25 percent of past-due benefits for fee petitions) before imposing offset, we can notify the claimant and the representative of the amount withheld through the award notice.

Refer to MCS notice paragraphs about representation, NL 00725.005.

D. Process - Manual Adjustment Credit and Award Processes (MADCAP)

When designating the proper paragraphs and fill-ins for notices in claims processed through MADCAP, the CS or other PC technician fills in the "representative" line. The BA/BTE or PETE enters the fill-in showing the proper withholding amount, e.g., fill-in (1) in paragraph ATY057.

The charts below in GN 03930.040E and GN 03930.040F outline the most common situations and circumstances.

E. Examples - MADCAP Notice Paragraphs

Situation

Circumstance(s)

Paragraph
  1. 1. 

    Withholding for direct payment

 

Claimant

or

Claimant and family

 

ATY057

 

ATY058
  1. 2. 

    Windfall offset information pending, withholding for direct payment

Non-critical case

or

Critical case

ATY059, fill-in (2) is A

 

ATY60, fill-in (3) is A
  1. 3. 

    Windfall offset information pending, withholding for direct payment

 

Offset would apply to NH or any beneficiary

or

Offset would apply to NH with auxiliary(ies)

 

ATY068

 

ATY838
  1. 4. 

    Copy of notice being sent to the representative

 

 

COP001 with appropriate fill-in(s)
  1. 5. 

    Court case, withholding for direct payment

 

NH

or

NH and auxiliary(ies)

ATY055



See GN 03930.040G., Sample Language for Court Cases.

F. Examples - Manual Notice Paragraphs

Situation

Paragraph(s)

Withholding for direct payment, separate notice to auxiliary

148.2

No past-due benefits available (e.g., future month of entitlement or workers' compensation offset)

ATY002, 013, 004

Representative eligible for direct payment waived fee, no withholding

ATY002, 014

MU22

Representative eligible for direct payment waived direct payment

ATY002, 012, 004

MU11

Non-attorney representative ineligible for direct payment, we request fee petition or waiver

ATY010

Non-attorney representative ineligible for direct payment, waived fee

ATY018

Direct payment to representative when making award, non-court case

E3816A, 3816B, or 3816C alone (claimant), or 147.1 (claimant and family)

Direct payment to attorney when making award, court case

E3819, with 3819A or 3819B

Where to send fee petition

160

G. Example - Sample Language for Court Cases

When we are withholding past-due benefits, the award notice must include language to advise the claimant about how fees may be authorized for services provided on their claim before the agency or the Federal court. Refer to the sample language below for guidance in drafting language that covers the specific case situation. For concurrent cases, include the Title XVI references given as options in the paragraphs below. Refer to paragraph ATY055 for past-due benefits withholding language to include with the language below, when appropriate.

NOTE: In the sample language for court cases, "representative" refers to the individual who provided representational services before us and "court attorney" refers to the individual who provided representational services in Federal court.

1. Representative Submitted Fee Agreement on Case the Court Favorably Decided ("True Court Case") - Past-Due Benefits Payable

We cannot approve the fee agreement filed in this case. The Social Security Act (Act) provides that we approve fee agreements at the time of a favorable determination. Because the Federal court allowed your claim, these fee agreement provisions do not apply.

If your representative (the individual who represented you in agency proceedings) wishes to receive a fee for the services they provided to you before the Social Security Administration, they must mail the fee petition to:

Social Security Administration

Office of Appellate Operations

Attn: Attorney Fee Branch

6401 Security Blvd

Baltimore, MD 21235-6401

If your representative did not provide services to you before the court, this process is the only way they can charge and collect a fee, and they must first obtain our authorization to do so.

The Act also provides for fees for services before the court. The court that made the favorable decision may enter an order determining the amount of the fee that your court attorney (the lawyer who represented you in court) may charge for services before the court. If your court attorney wishes to receive a fee for those services, they must file the petition for that fee with the court that made the decision. We are not able to authorize a fee for services performed before a court.

Your court attorney may also petition the court for a fee under the Equal Access to Justice Act (EAJA). These awards are paid from administrative funds and, unlike fees under the Act, are not deducted from your past-due benefits. The EAJA specifically provides that where an attorney receives fees for the same work under both the Act and the EAJA, the attorney must refund to you the amount of the smaller fee.

If your representative or court attorney will not ask for a fee, or will not ask us to directly pay any authorized fees out of your past-due benefits, they should notify us in writing so that we may distribute to you any excess funds we withheld from your past-due benefits.

2. Representative Did Not Submit Fee Agreement on Case We Favorably Decided on Remand from the Court

If your representative wishes to receive a fee for the services they provided you before the Social Security Administration, they must file a fee petition with Name and address of component that has jurisdiction over authorizing fee. Refer to GN 03930.015 ]. If your representative or court attorney will not ask for a fee, or will not ask us to directly pay any authorized fees out of your past-due benefits, they should notify us in writing so that we may distribute to you any excess funds we withheld from your past-due benefits.

3. Representative Did Not Submit Fee Agreement on Case Favorably Decided by the Court ("True Court Case") - Past-Due Benefits Payable

If your representative (the individual who represented you in agency proceedings) wishes to receive a fee for the services they provided to you before the Social Security Administration, they must file a fee petition at:

Social Security Administration

Office of Appellate Operations

Attn: Attorney Fee Branch

6401 Security Blvd

Baltimore, MD 21235-6401.

The Social Security Act (Act) also provides for fees for services before the court. The court that made the favorable decision may enter an order determining the amount of the fee that your court attorney (the lawyer who represented you in court) may charge for the services before the court. If your court attorney wishes to receive a fee for those services, they must file the petition for that fee with the court that made the decision. We are not able to authorize a fee for services performed before a court.

Your court attorney may also petition for a fee under the Equal Access to Justice Act (EAJA). These awards are paid from administrative funds and, unlike fees under the Act, are not deducted from your past-due benefits. The EAJA specifically provides that where an attorney receives fees for the same work under both the Act and the EAJA, the attorney must refund to you the amount of the smaller fee.

If your representative or court attorney will not ask for a fee, or will not ask us to directly pay any authorized fees out of your past-due benefits, they should notify us in writing so that we may distribute to you any excess funds we withheld from your past-due benefits.

H. References

 

GN 03930.045 Diaries for Receipt of Fee Petitions and Fee Authorizations

A. Process

Although the representative must obtain our authorization to charge and collect a fee, we will not routinely diary a claim or post-entitlement action for further processing when we are not withholding past-due benefits for possible direct payment.

B. Policy

1. Diary for Fee Petition from Representative Eligible for Direct Payment

In cases resolved at the initial or reconsideration level, the diary period is 60 days from the date of the favorable determination.

2. Diary for Fee Authorization from Office of Hearings Operations (OHO) or Office of Appellate Operations (OAO)

In cases resolved in administrative proceedings at the hearing or Appeals Council level, the diary period is 60 days from the date of the favorable decision.

3. Diary for Fee Authorization from a Court and for the Administrative Fee Authorization

In cases decided by the favorable judgment of a Federal court (including cases resolved in a favorable administrative decision following a Federal court remand, see GN 03920.060A.3., NOTE), the diary period for receipt of the court's fee order and, if applicable, the administrative fee authorization is:

  • •

    For cases favorably resolved by the Federal court (also called "true court cases"): 120 days from the date of the court's decision.

  • •

    For cases resolved in a favorable administrative decision following a Federal court remand: 120 days from the date of the final administrative law judge or Appeals Council decision.

    NOTE: If there is a significant delay in issuing the award notice after the favorable decision, adjust the diary period accordingly. Fee petitions are often not filed until the past-due and fee amounts are available.

C. Procedure

There are several ways to control diaries or to monitor payment action.

1. Processing Centers (PC)

PCs set controls for the receipt of a fee petition or fee authorization on Title II claims and concurrent Titles II and XVI claims.

  • •

    The Single Payment System (SPS) provides a listing of pending representative payments.

  • •

    If necessary, PCs will create an Action Control Record (ACR) to control the work through the Processing Center Action Control System (PCACS). For cases decided at the hearing or Appeals Council level, an ACR is automatically created when OHO or OAO transfers the case to the PC for effectuation. The Type of Event Level (TOEL) 1 and 2 explains the action waiting to be processed. Assign a TOEL of ATFEE PETPAY for any diary or ACR established to control for the receipt of a fee petition from a representative who is eligible for direct payment or a fee authorization from OHO or OAO. If the only pending issue is court ordered fees, use a TOEL of ATFEE COURT. PCs also have their own listing codes. The ACR remains in the Development Holding File (DHF) until the issue is resolved.

    NOTE: In the Office of Central Operations, technicians processing OHO, OAO, or court level cases prepare a PCACS diary related to the existing “ATFEE PAY” or ATFEE COURT” ACR, and route the claims to the DHF PAY pending receipt of the fee authorization.

  • •

    The Modernized Claim System (MCS) diaries may control the actions. See GN 01040.010, Diary Codes.

The preferred method of establishing the controls may vary among the PCs. Follow local PC procedures.

2. Field Offices (FO)

In Title XVI only claims and the Title XVI portion of concurrent claims, the FO controls for the receipt of a fee petition or a fee authorization by establishing for resolution a FEE PETITION issue on the Development Worksheet or on the MDW screen for non-MSSICS cases.

D. References

  • •

    GN 03930.090, No Fee Petition or Fee Authorization Received by PC or FO when Diary Matures and We Are Withholding Past-Due Benefits - Non-Court Case.

  • •

    MS 03509.013, Decision Input (DECI)

GN 03930.050 List of Claim Specialist (CS) Responsibilities for Adjudicating Title II Post-Entitlement Actions Involving Representatives Who May Petition for Fees

Procedure

Claims specialist (CS) adjudicates Title II post-entitlement actions involving representatives who may petition to obtain our approval of fees for their services. The key CS responsibilities are the same as for claims actions:

  • •

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

  • •

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

  • •

    Set the diary for receipt of the fee petition or fee authorization when we are withholding past-due benefits for possible direct payment.

However, the claims authorizer (CA)/claims technical examiner (CTE) designates either Manual Adjustment, Credit and Award Process (MADCAP) or manual paragraphs because post-entitlement actions are not processed through the Modernized Claim System (MCS).

Even if there is a valid assignment, do not send a copy of the notice to the entity's point of contact (POC) or other individual without the claimant's express written consent. We will only send this notice to the POC or other individual listed in GN 03930.020A when we have information confirming that the representative has died. For information about the assignment of direct payment fees to an entity, including the roles and responsibilities of POCs, see GN 03920.021.

GN 03930.055 Benefit Authorizer Responsibilities - Overview - Fee Petition Process

A. Policy

The benefit authorizer (BA), the benefit technical examiner (BTE), or the post entitlement technical expert (PETE) in the processing center (PC):

  • •

    Certifies direct payment of a fee to an eligible representative or to an eligible entity if there is a valid assignment from withheld Title II past-due benefits based on authorization by the fee decision maker;

  • •

    Releases excess Title II past-due benefits withheld to the claimant and any auxiliary beneficiaries;

  • •

    Determines appropriate fill-ins for paragraphs designated by the claims specialist (CS), claims technical examiner (CTE), or PC fee reviewer; and

  • •

    Sends notices to the representative, the claimant, and any auxiliary beneficiaries when we pay the fee and releases any excess past-due benefits.

NOTE 1 : The position assigned to perform specific functions may vary among the PCs.

NOTE 2 : We will only send this notice to the POC or other individual listed in GN 03920.020A when we have information confirming that the representative has died. For information about the assignment of direct payment of fees to an entity, including the roles and responsibilities of POCs, see GN 03920.021.

NOTE 3: Claimants are entitled to only certain information about auxiliaries. Likewise, auxiliaries should only receive certain information about the claimant. Notices sent to claimants and auxiliaries must adhere to the policies articulated in GN 03316.105 and GN 03316.110.

B. Procedure - Identifying Fee Petition Cases

Identify fee petition cases by the following:

1. Remarks

Look for any remarks the CS or PC fee reviewer provided specifying that the case is or may be a fee petition case. Note the directions the CS, CTE, or PC fee reviewer provided (e.g., with a remark associated with the A101 or EF101) to withhold 25 percent of past-due benefits for possible direct payment.

2. Definitions

As needed, refer to the sections listed below to clarify what are past-due benefits and benefits subject to withholding.

3. Questionable Situations

Refer questionable situations to the CS/CTE for clarification.

C. Procedure - Diary Matures - Withholding

Take the actions shown in this subsection if the diary on a Title II only claim or concurrent Title II and Title XVI claims matures and the PC has not received a fee petition, extension request, fee waiver or waiver of direct payment from the representative (or court attorney, if applicable), or a fee authorization from the hearing office, Appeals Council, or the court.

1. Initial or Reconsideration Level Case

Route the case to the CTE, fee reviewer or disability specialist (or other position identified by the PC) for necessary action under GN 03930.090A. (case decided at initial and reconsideration levels).

2. Hearing or Appeals Council Level Case

Adhering to the practice in your PC, follow the procedure in GN 03930.090B (case decided at hearing level) or GN 03930.090C (case decided by the Appeals Council), or refer the case to the PC fee reviewer for necessary action.

3. Court Case

Refer to GN 03930.091 for the actions to take.

GN 03930.060 Title II and Title XVI - Releasing Past-Due Benefits Withheld for Possible Direct Payment of Authorized Fees

A. Policy

We release Title II and Title XVI past-due benefits withheld for possible direct payment of authorized fees in the following situations:

  • •

    To the representative who is eligible for direct payment or to an eligible entity, if there is a valid assignment per GN 03920.021, when we have authorized fees for services (refer to GN 03930.085).

  • •

    To a court attorney who is eligible for direct payment when a federal court has authorized fees for services performed before the court. See GN 03920.060 for information on court fees.

  • •

    To the claimant when:

    • –

      All representatives and court attorneys (if applicable) have waived their fee or direct payment of their fee;

    • –

      We have released payment to all representatives, court attorneys (if applicable)), and entities (if applicable) and the total fee(s) was less than the amount of past-due benefits withheld; or

    • –

      In cases with no court involvement, we have notified the representative(s) and the claimant of the time limit that applies in order to receive direct payment of a fee for administrative level services, and the representative(s) has not filed a fee petition or a written request for an extension of time within 20 days from the date of the notice.

See GN 03930.001C. for the definition of a representative “eligible for direct payment” and GN 03920.021B.2 for the requirements for an entity to be eligible to receive direct payment.

B. Process

The Form SSA-1560A (Authorization to Charge and Collect a Fee) and other documents described in GN 03930.001C.5 record the fee authorized under the fee petition process for services provided in proceedings before us. The processing center (PC) fee reviewer, claims technical expert (CTE), senior claims processing specialist (SCPS), Administrative Law Judge (ALJ), or Administrative Appeals Judge (AAJ) instructs the benefit authorizer (BA), benefit technical examiner (BTE), or post entitlement technical expert (PETE) to release Title II funds. The FO claims specialist (CS) releases Title XVI funds.

1. Title II

Generally, the BA/BTE or PETE certifies direct payment to the representative, or entity if there is a valid assignment per GN 03920.021, in fee petition process cases when we have authorized a fee and to the court attorney when the court has authorized a fee.

NOTE: An individual PC may require that the CS/fee reviewer (e.g., CTE, SCPS, or disability specialist) instruct the BA/BTE or PETE about releasing funds and sending notices.

2. Title XVI

The field office (FO) CS releases Title XVI funds and sends notices (see GN 03930.030 and GN 03930.032).

C. Procedure - Identify Situations Preventing Payment

When the PC technician or the Title XVI CS receives the SSA-1560A or another fee authorization document, first review the authorization and the electronic file for situations that preclude or delay certification of direct payment. For non-electronic cases, review the folder if necessary. Note that the authorization reflects the fee approved and generally addresses the means of payment.

1. Situations Requiring Referral to the Reviewer

Do not proceed with payment in the following situations. Instead, in the PC, refer the file to the PC CTE/SCPS or fee reviewer, advise the fee reviewer of the reason(s) you did not certify direct payment, request clarification, and set a diary (as GN 03930.060C.4. describes).

NOTE: In a Title XVI only claim, a FO CS reviews the file for impediments to payment from the withheld Title XVI past-due benefits; however, if the fee authorizer is aware of an impediment, the fee authorizer must identify the impediment for the CS. In concurrent Titles II and XVI claims, if the CS identifies an impediment to direct payment from the Title II withheld benefits, the CS will advise the PC of the impediment.

  1. a. 

    A statement on the fee authorization prevents payment.

    EXAMPLES:

    • •

      The representative is not eligible for direct payment.

    • •

      The fee amount determined for certification of direct payment exceeds the 25 percent withheld from Title II or Title XVI past-due benefits.

    NOTE: If the representative has assigned their right to receive direct payment of an authorized fee to an entity and that entity is not eligible to receive direct payment, the technician must not honor the assignment (see GN 03920.021 for more information) and will instead pay the representative directly, unless they are also ineligible for direct payment.

  2. b. 

    The fee amount(s) authorized exceeds $15,000, and:

    • •

      in a case decided at initial or reconsideration level, the Form SSA-1560A is not signed by an official from the Attorney Fee Branch within the Office of Appellate Operations; or

    • •

      in a case decided by an ALJ, the fee authorization notice is not signed by the Regional Chief ALJ or other authorizing official shown in GN 03930.015D.

    NOTE: Some offices require that the fee reviewer verify the proper authorization of fees exceeding $15,000.

  3. c. 

    The fee amount authorized does not reflect dollars and cents.

  4. d. 

    An amended award reduced the past-due benefits withheld to an amount less than the fee amount determined for certification of direct payment.

  5. e. 

    An amended award increased the past-due benefits, and the fee amount authorized exceeded the amount determined for certification of direct payment.

  6. f. 

    Material in the claim(s) file indicates the representative’s services are continuing.

  7. g. 

    There is evidence of a trust or escrow account, or payment of the fee from some other source, which the fee authorizer did not consider. (See GN 03920.025C. for a discussion of the effect of funds held in a trust or escrow account.)

  8. h. 

    Any other question which requires clarification.

2. Another Representative Petitions

Do not proceed with payment if, when processing the action, you receive or learn of a fee petition filed by another representative who is eligible for direct payment. In multiple representative situations, we presume each representative who did not waive their fee or file a fee agreement will submit a fee petition (see GN 03930.005B.5.). Do not proceed with payment unless we have a fee authorization for all such representatives who are eligible for direct payment, or the diary for receipt of the fee petition or authorization specified in GN 03930.045B. expires.

Instead of certifying payment, refer the file to the person who authorized the fee you are considering, advise the fee authorizer of the reason(s) you did not certify direct payment, request clarification, and set a diary as GN 03930.060C.4. describes.

3. Request for Administrative Review

Do not proceed with payment if, when processing the action, you receive or learn of a fee protest or request for administrative review. Instead, refer the claim file to the appropriate person or component for administrative review. See GN 03950.005 to determine which component has jurisdiction to conduct the administrative review and GN 03950.010B for instructions on routing the request to the proper component. Set a diary per GN 03930.060C.4.

4. Diary

a. Referral to the Reviewing Component

If you refer the file to the component with jurisdiction to conduct the administrative review, or you expect the fee reviewer will do so, diary the case for 60 days. Show the reason for the diary as “Fee Authorization.”

b. No Referral to the Reviewing Component

Diary the case for 60 days. Show the reason for the diary as “Fee Petition.”

D. Procedure - Release Benefits Withheld

If none of the impediments listed in GN 03930.060C. precludes or delays direct payment, release the benefits withheld (as shown generally for Title XVI claims in GN 03930.035 and for Title II claims in GN 03930.060D.1. and GN 03930.060D.2., but see the anomalies in GN 03930.060D.3.). Note that for purposes of this subsection, payment from another source would include funds in a trust or escrow account. (See GN 03920.025 for a discussion of the effect of funds held in a trust or escrow account and GN 03920.019 for information about the assessment or “user fee” associated with direct payment.)

NOTE 1 : In a concurrent claim, ensure that offset is completed before authorization and again after the Title II authorized fee is known before releasing Title II past-due benefits.

NOTE 2 : If the representative has assigned their right to receive direct payment of an authorized fee to an entity refer to GN 03920.021 for more information.

NOTE 3: In court remand cases, verify court fee issues are resolved.

1. No Payment Expected from Other Source(s)

Situation

Action
  1. a. 

    Fee equals or exceeds amount of benefits withheld

 

After deducting the assessment, pay to the representative or entity if there is a valid assignment all benefits withheld and authorized for the fee payment. In a concurrent case, verify the Title XVI withholding amount with the FO.
  1. b. 

    Amount of benefits withheld exceeds fee

 

After deducting the assessment, pay the fee to the representative (or entity if there is a valid assignment) and, unless GN 03930.060D.3.a. applies, release the remainder based on the priority of payment policy.

2. Payment Expected from Other Source(s)

Situation

Action
  1. a. 

    Payment expected from other source(s) equals or exceeds fee

 

Unless GN 03930.060D.3. below applies, release all of the benefits withheld based on the priority of payment policy.
  1. b. 

    Fee equals or exceeds the sum of the amount of benefits withheld and the payment expected from other source(s)

After deducting the assessment, pay to the representative (or entity if there is a valid assignment) all benefits withheld and authorized for fee payment.
  1. c. 

    The sum of the benefits withheld and the payment expected from other source(s) exceeds the fee

 

After deducting the assessment, pay the appropriate portion of the fee to the representative (or entity if there is a valid assignment) and, unless GN 03930.060D.3. applies, release the remainder based on the priority of payment policy.

(See GN 02301.000 for Title II underpayment payment policy and SI 02101.000 for priority of payment policy for Title XVI cases.)

3. Anomalies

Exercise caution when certifying direct payment or releasing any excess past-due benefits withheld in the situations identified above in GN 03930.060D.3.a and GN 03930.060D.3.b.

a. Case Decided in Federal Court Proceedings ("True Court Cases") or on Court Remand

When you certify direct payment to the representative, or entity if there is a valid assignment, and the administrative fee(s) authorized in connection with the fee petition(s) is less than 25 percent of the past-due benefits, continue to withhold the remainder if a Federal court may award an additional fee to an attorney under §206(b) or §1631(d) of the Social Security Act. Do not release the remainder to any beneficiary or recover an overpayment in this situation.

b. Payment Expected from Other Source(s) in Concurrent Titles II and XVI Cases

If the representative, or entity if there is a valid assignment, has funds in a trust or escrow account that the representative or entity will collect for services unique to the Supplemental Security Income (SSI) program, reduce both the amount you consider as held in trust or escrow and the fee amount authorized for direct payment purposes from Title II past-due benefits. For an example, refer to GN 03930.060D.4.b. in this section. The Title XVI CS will deduct the escrow funds for services unique to the SSI program from the fee amount authorized from Title XVI past-due benefits, as appropriate

4. Examples

a. Funds Held in Escrow - No Fee Amount Attributable to Title XVI Exclusively

We withheld $2,600 and the representative had $1,000 held in a trust or escrow account. The fee authorizer approved a fee of $2,500. Consistent with GN 03930.060D.2.c. and the information provided in the fee authorization, you deduct the assessment ($94.50), certify $1,405.50 for direct payment to the representative and release the $1,100 remainder to the claimant. In addition, we release any Title XVI past-due benefits withheld for direct payment because the Title II past-due benefits satisfied the full fee amount. The representative collects the $1,000 fee balance from the trust or escrow account.

$ 2,600.

Amount withheld

+ 1,000.

Amount in trust or escrow

$ 3,600.

Total available

- 2,500.

Fee authorized

$ 1,100.

 

Remainder for claimant

$ 2,600.

Amount withheld

- 1,100.

Remainder for claimant

$ 1,500.

- 94.50

$ 1,4 0 5. 5 0

Amount for direct payment before assessment

Assessment

Amount for direct payment

b. Funds Held in Escrow – Portion of Fee Designated as Attributable to Title XVI Exclusively

As in the previous example in GN 03930.060D.4.a., we withheld $2,600 in Title II past-due benefits and the representative 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 ($94.50), certify $1,405.50 for direct payment to the representative, and release the $1,100 remainder to the claimant. In addition, the CS 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.

- 94 . 5 0

$ 1,4 0 5. 5 0

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.

 

GN 03930.065 Title II - Mode of Payment of Authorized Fees from Past-Due Benefits

A. Process

The benefit authorizer (BA) completes the Single Payment System (SPS) Attorney Fee Payment Screen (APAY) to make direct payment of a fee to a representative or entity if there is a valid assignment (GN 03920.021) when they are eligible for direct payment. For additional information about eligibility for direct payment, refer to GN 03920.016B. The APAY screen displays all necessary information to make a payment and to calculate the assessed user fee. The system propagates most of the information from the Modernized Claims System (MCS), the Registration, Appointment, and Services for Representatives (RASR), or Manual Adjustment Credit and Award Processes (MADCAP) to the APAY.

The Payment History Update System (PHUS) shows the fee payment data. The assessment or "user fee" is only present in SPS and is reflected on the PHUS. Manual adjustments cannot be made in the Manual Adjustment Credit and Award Data Entry (MACADE) system.

For more information about making a direct payment to an entity if there is a valid assignment, see GN 03920.021.

B. References

  • •

    GN 03920.019 Assessment on representatives eligible for direct payment, or “user fee,”

  • •

    MS 05701.006 Attorney Fee Payment.

  • •

    SM 00834.410 SPS Processing of the Attorney Fee Payment (APAY) Screen

  • •

    SM 00630.276 PHUS Event 076 Atty User Fee

  • •

    GN 02610.000 Title II/Title XVI (Windfall) Offset

  • •

    SI 02006.000 Windfall Offset and Effect on Title XVI Payments

 

GN 03930.066 Title II - Fee Petitions – Processing the Assessment

A. Introduction

We are required to charge an assessment, also called a “user fee” or “service charge,” when directly paying fees from past-due benefits. The Social Security Protection Act of 2004 (SSPA) amended section 206(d)(2)(A) of the Social Security Act by:

  • •

    Capping the assessment at a flat-rate dollar amount or 6.3% of the fee payment, whichever is lower, effective September 1, 2004; and

  • •

    Adjusting the flat-rate cap based on annual cost-of-living adjustments rounded down to the next lower $1.

The current flat-rate assessment amount is $120.00, effective December 1, 2024.

Refer to GN 03920.019, Assessment on Representatives Who Receive Direct Payment, for assessment policy. For information about the assignment of direct payment of fees to an entity, see GN 03920.021.

B. Overview

The Single Payment System (SPS) processing of the assessment differs depending on the Payment Identification Code (PIC) cluster. The key difference between the two clusters is whether SPS considers paid assessment amounts already in the SPS database when calculating the assessment.

  • •

    PICs of A, D, E, and W generally are associated with the person who is the primary claimant for purposes of representation (i.e., the person who appointed the representative or on whose behalf the representative was appointed). For these PICs, SPS does not consider paid assessment amounts already in the SPS database.

    EXAMPLE : We are paying the fee based on a new period of disability, and an assessment amount is in the database. SPS will disregard the previous assessment payment and correctly calculate the assessment.

  • •

    PICs of B and C generally are associated with an auxiliary beneficiary for purposes of representation. For these PICs, SPS considers paid assessment amounts already in the SPS database.

Most actions are automated because of these defaults, but manual processing will be required in some cases. For example, a child (PIC C) may in fact be the primary claimant (i.e., the person who appointed the representative or on whose behalf the representative was appointed). In this situation, SPS may not process the assessment correctly on its own. Refer to GN 03920.019M.2., which identifies manual processing situations.

C. Definitions

In this section, the following definitions apply:

1. Decision

By decision, we mean an initial or reconsideration determination, a decision made by an attorney advisor or administrative law judge at the hearing level, or a decision made by an administrative appeals judge at the Appeals Council.

2. Fee Payment Date

By the fee payment date (i.e., the date we “make payment” or “pay all or part of the authorized fee”), we mean the date that the SPS sets the payment in PAID status. When fee payment is initiated through the Modernized Claims System (MCS) or the Manual Adjustment Credit and Award Processes (MADCAP), the payment date (i.e., the date on which the payment is set in PAID status) is the day after the input action is processed. 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 or electronic fund transfer (EFT).

3. SPS Online or Online

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.

D. Process – Fee Authorized Based on Fee Petition

1. General

When the claims specialist (CS) or processing center (PC) technician effectuates a Title II decision that may involve direct payment of authorized fees, the CS or technician ensures that we withhold from past-due benefits (see GN 03930.035). After the fee is authorized, the benefit authorizer (BA), benefit technical examiner (BTE), or post entitlement technical expert (PETE) completes the SPS Attorney Fee Payment Screen (APAY) to make direct payment of the authorized fee to the appropriate recipient(s) (see GN 03930.065). When the technician inputs the authorized fee amount, SPS will calculate the assessment.

2. Fee Payments to Two or More Representatives or Entities

When more than one representative file a fee petition and requests direct payment or assigns direct payment to an entity, SPS processing differs depending on the order in which we authorize the fees.

a. We Pay the Authorized Fees Simultaneously

If the authorized fees are the same amount for each representative, SPS will divide the assessment equally between or among the representatives receiving direct payment.

If the authorized fees are not the same amount for each representative, SPS will not calculate the assessment correctly. The technician in the PC must override the SPS-calculated assessment, recalculate the assessment to prorate it based on each representative's percentage of the total fee (see the example in GN 03930.066D.2.b.), and input into SPS the correct amount to deduct.

NOTE: If one or more of the representatives validly assign direct payment of their fee to the same entity, the entity's payment will be reduced by the sum of the user fees that would otherwise have been assessed to their affiliated representatives. If all representatives have assigned their right to receive direct payment of their fees to the same entity, the entity's payment would be reduced by the full user fee, up to the current user fee cap.

b. We Pay the Authorized Fees at Different Times

When we make the first fee payment, SPS correctly determines the assessment to be the lesser of 6.3% of the fee payable from past-due benefits or the flat-rate cap based on the annual cost of living adjustment. When processing a subsequent fee authorization, it becomes necessary to:

  • •

    Use the SPS Online (manual) process.

  • •

    Override the SPS-calculated assessment for the subsequent fee payment.

  • •

    Prorate the assessment, as described in the example below, based on the total fees paid to each representative, including representatives who validly assigned their right to receive direct payment of their authorized fee to an entity.

  • •

    Deduct the prorated assessment from the fee being processed.

  • •

    Initiate payment action on the second fee.

  • •

    Refund to the representative or validly assigned entity who received the first direct payment the difference between the amount the representative was assessed and the recalculated assessment.

  • •

    Send a notice to the representative paid first and, if the fee was paid to an entity, a copy to the entity's point of contact (see GN 03920.021), containing the information included in the following sample language:

    “Previously we paid you a fee of $(amount of payment made to representative after deduction of assessment). As required by law, we reduced the fee payment amount by a service charge of $(amount of assessment), which was the lower of 6.3% of the fee we paid or (the applicable assessment cap).

    Later, we authorized and paid a fee on the same claim to another representative. When 6.3% of the combined payments exceeds (the applicable assessment cap), we divide the (the applicable assessment cap) service charge based on the percentage of the individual fee amounts. Therefore, we have recalculated the service charge you must pay and are refunding $(amount of excess assessment) to you.”

  • •

    Refer the case to the appropriate technician to correct the assessment for the first direct payment on the Payment History Update System (PHUS) record.

    EXAMPLE : We withheld $5,200 from the claimant's past-due benefits. Two representatives who are eligible for direct payment filed fee petitions requesting authorization to charge and collect fees for their services. In February 2024, we authorized Representative A to charge and collect $1,600, and paid Representative A $1,523 after deducting the $77 assessment. Later, Representative B filed a fee petition and was authorized to charge and collect $3,100. Because $77 is less than 6.3% of $4,700 ($1,600 + $3,100), the cap applies and must be prorated between the two representatives in proportion to the fee amount we pay to each.

     

    Representative A

    Representative B

    Percent of total fee

    $1,600/$4,700 = .340425

    (Generally, we do not round intermediate calculations. However, it is not necessary to carry the results of this step beyond six decimal places. Disregard digits beyond six decimal places.)

    $3,100/$4,700 = .659574

    Assessment amount

    $77 X .340425 = $26.212 or $26.21 (Round to the nearest cent, following RS 00601.020B.)

    $77 X .659574 = $50.787 or $50.79

    Amount of direct payment

    $1,600 – 26.21 = $1,573.79 (Recalculated)

    $3,100 – 50.79 = $3,049.21 (Paid to Representative B)

    We will refund the excess assessment to Representative A.

    $77.00 – 26.21 = $50.79 (Refund paid to Representative A)

    		 ​

E. Procedure – Field Office Actions

CSs are not responsible for authorizing fees under the fee petition process or releasing Title II fee payments (see POMS GN 03930.035).

However, on a Title II case, the CS must add a special message to the MBR to alert the PC to the need to modify the fee notice or take a manual action related to the calculation of the assessment when there are two or more representatives, including representatives who validly assigned their right to receive direct payment of their authorized fee per GN 03920.021, and:

  • •

    The representatives are authorized fees in different amounts, or

  • •

    We pay the authorized fees at different times.

In addition, if either of these situations arises in a Title XVI case, the CS is responsible for processing those actions in accordance with policy.

F. Procedure – PC Actions

The BA, BTE, PETE, or fee reviewer, or other designated PC position certifies direct payment to the representative, or entity if there is a valid assignment per GN 03920.021, after we authorize a fee for administrative-level services based on a fee petition, or to the court attorney after the court authorizes a fee. In addition to following the procedures in GN 03930.060, the BA, BTE, or PETE must ensure that we collect the correct assessment amount and provide notice.

As explained in GN 03930.066D, some situations require manual input to override the SPS automated assessment calculation and deduction.

1. Notices

SPS calculates and deducts the assessment correctly in fee petition or court authorized fee cases when:

There is one representative and one fee payment.

There are multiple representatives, including those who assigned their right to receive direct payment of their administrative fee, and we authorized each the same fee amount.

In these situations, as the PC technician, you must:

  • •

    Identify the appropriate assessment paragraph to be included in the fee payment notice that goes to the claimant and the representative or court attorney (refer to the notice chart in GN 03920.019K.); and

  • •

    Provide the variable fill-in information.

2. Override SPS Assessment Calculation

Refer to GN 03930.066D. to determine the situations in which you must override the automated assessment calculation and deduction.

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

  • •

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

  • •

    Manually calculate the correct assessment.

  • •

    For MADCAP actions ONLY, input code “03” (standard assessment does not apply) in the MACADE Attorney Payment Indicator field on the ATT screen to put a hold on the fee payment (see SM 00842.016).

  • •

    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 (APAY) screen.)

  • •

    On the APAY screen, if multiple representatives are involved, enter the number of representatives; the “Number of Attorneys on the SSN” field will not be pre-filled. (The completed APAY screen leads to the Payment Action (PACT) screen.)

  • •

    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.

  • •

    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.

If you have prorated and reduced the assessment deducted from a previously paid fee because you are paying an additional fee to another representative or entity with a valid assignment after an authorization based on a fee petition or to a court attorney after a court award, take the following additional actions:

  • •

    Authorize a check or EFT in the amount of the assessment reduction to be issued to the representative who received the previous fee payment or authorize an EFT in the amount of the assessment reduction to be issued to the entity with a valid assignment.

  • •

    Update PHUS to correct the assessment for the previous payment.

  • •

    Send an explanatory notice to the representative who received the previous payment. Refer to GN 03930.066D.2.b. for sample language.

 

GN 03930.070 Title II - Prorating Excess Past-Due Benefits Withheld for Payment to Auxiliary Beneficiaries

A. Policy

In fee petition cases, the primary claimant pays the authorized fee from their 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, or entity if there is a valid assignment see GN 03920.021, under the circumstances listed in this subsection, the benefit authorizer (BA) 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.

We prorate the excess if:

  • •

    We certify direct payment of all or part of the authorized fee;

  • •

    There is no need to continue withholding (e.g., to pay another eligible representative(s) who files a fee petition, for administrative review, or for possible direct payment of a fee a federal court authorizes) and the authorized fee was more than the amount we withheld from the primary claimant’s past-due benefits;

  • •

    We must release the funds remaining to two or more auxiliary beneficiaries; and

  • •

    All auxiliaries do not live in the same household.

NOTE : We do not prorate the excess withholding when all auxiliary beneficiaries live in one household.

B. Procedure

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.

Step

Action

 

Example

1

Add the amount of past-due benefits withheld from each auxiliary beneficiary.

  $ 860.

+2,784.

$3,644

HB’s withholding

HC1’s withholding

Sum of withholding from auxiliaries (HB & HC1)

2

Determine the direct payment amount not satisfied by the primary claimant’s withheld past-due benefits (i.e., determine the fee amount the auxiliaries will pay).

$9,732.

- 7,288.

$2,444

Authorized fee

Primary claimant’s withholding

Fee amount auxiliaries to pay

3

Determine the auxiliaries’ excess withholding: difference between the amount withheld from the auxiliary beneficiaries (from Step 1) and the direct payment amount the auxiliaries to pay (from Step 2).

$3,644

- 2,444

$1,200

 

Amount withheld HB & HC1

Amount HB & HC1 to pay

Excess withholding

4

Find each auxiliary beneficiary's percentage of the total past-due benefits withheld from auxiliaries: divide the amount of past-due benefits withheld from each beneficiary by the total past-due benefits withheld from all auxiliaries (from Step 1). Carry your result to four decimal places, and do not round.

$ 860

$3,644

 

$ 2,784

$ 3,644

 

= .2360 for HB

 

 

= .7639 for HC1

 

 

.

5

Determine the approximate refund amounts: multiply the total excess withheld from all auxiliaries (from Step 3) by each beneficiary's withholding percentage (from Step 4). Repeat for each beneficiary.

$ 1,200 23.60% = $283.20 for HB

 

$ 1,200 76.39% = $916.68 for HC1  

 

6

 

 

 

Add the approximate refund

amounts (from Step 5).

 

 

$ 283.20

+ 916.68

$1,199.88

 

HB

HC1

Sum

7

 

 

 

From the excess withheld (from Step 3),

subtract the sum from Step 6.

 

 

$ 1,200.00

- 1,199.88

 $      .12

 

Excess

Sum

Remainder

 

8

Add any remainder (from Step 7) to the approximate refund amount (from Step 5) of the first auxiliary in alphabetical order based on the beneficiary identification codes (e.g., B; if no B, then C1; etc.).

$ 283.20

+ .12

$283.32

HB's approx. refund

Remainder

HB's actual refund

 

9

 

 

The sum of the resulting refund amounts will equal excess withheld from all auxiliaries.

$ 283.32

+916 .68

$1,200.00

HB’s actual refund

HC1’s actual refund

Total excess refund

 

GN 03930.075 Title II - Notifying the Representative, the Claimant, and Any Auxiliary Beneficiaries

A. Introduction

The benefit authorizer (BA) uses standard post-entitlement notices when directly paying fees to a representative or entity if there is a valid assignment per GN 03920.021, with special instructions provided by the fee authorizer.

B. Process - Fee Petition Received Before Award

The claims specialist (CS), claims technical expert (CTE), or processing center (PC) fee reviewer designates appropriate paragraphs for the award notice sent to the claimant and the representative(s) when that representative(s) submits their fee petition before we process the award.

C. Process - Fee Authorized After Award

Notice responsibilities depend on who authorizes the fee.

1. Fee Authorized at Initial or Reconsideration Level

When the PC authorized the fee or has proposed (consistent with GN 03920.015B.) to authorize a fee of more than $15,000:

  • •

    The fee reviewer instructs the BA/benefit technical examiner (BTE) on notice language for initial fee awards.

  • •

    The Senior Claims Processing Specialist/CTE in the program service centers, the Disability Specialist in the Office of Disability Operations, and the fee reviewer in the Division of International Operations explain in the notice of administrative review how the representative should collect the fee or fee increase. No BA/BTE notice is necessary.

2. Fee Authorized at Hearing or Appeals Council Level

When the fee is authorized at or above the hearing level or by a court, the BA/BTE prepares the notice. The BA/BTE will obtain advice from the fee reviewer as necessary.

NOTE: Local offices may designate another position as responsible for providing the BA/BTE with notice instructions.

a. Notice to Representative

  • •

    The decision maker notifies the representative of the authorized fee and the method of payment using Form SSA-1560A or another fee authorization notice described in GN 03930.001C.5. No further notice is necessary unless we did not withhold or prematurely released benefits withheld for direct payment to a representative (or entity if there is a valid assignment). We will only provide a copy of the Form SSA-1560A or other fee authorization document to the POC or other individual listed in GN 03930.020A if they filed the fee petition for a deceased representative.

  • •

    If the fee was authorized by a federal court, the court order provides the representative with the necessary notice.

b. Notice to Claimant

We notify the claimant when releasing withheld past-due benefits (e.g., see E3816 in NL 00703.816).

3. We Failed to Withhold Benefits

Additional notice language is required if we failed to withhold or prematurely released past-due benefits.

  • •

    Refer to the instructions in GN 03920.055.

  • •

    In court cases, the PC fee reviewer contacts the Office of the General Counsel (OGC) to resolve the situation (see GN 03930.180 for the OGC contact list).

D. References

GN 03930.080 Notifying Field Offices of Authorized Fees in Concurrent Claims Situations

A. Policy

The processing center (PC) must notify the servicing field office (FO) of any authorized fee(s) in concurrent claims situations because:

  • •

    The authorization of a representative's fee in concurrent claims situations generally requires that the claims specialist (CS) in the FO make one or more adjustments to the Supplemental Security Income record, as GN 03930.030C.4. explains. Also, the FO will reduce Title II income and compute the offset amount if the system has not made the adjustment.

  • •

    If we are withholding Title XVI past-due benefits for possible direct fee payment, the CS must release the withheld benefits to the representative, or entity if there is a valid assignment (see GN 03920.021), and/or the claimant; and/or recoup any outstanding prior overpayment as the circumstances in the case warrant.

NOTE: Individual PCs may designate employees in a position other than the benefit authorizer (BA) or benefit technical examiner (BTE) position (e.g., the reconsideration reviewer) as responsible for notifying the FO.

B. Definition of Concurrent Claim

For purposes of this subsection, "concurrent claim" means any claim or asserted right under Title II of the Social Security Act when the claimant also filed a claim for Title XVI payments, at either the same time or any time in the past, whether the Title XVI claim was allowed or denied.

C. Procedure

The PC will do the following in concurrent claims situations.

1. Notify the FO

a. Fee We Authorize

  • •

    For claims decided at the initial or reconsideration level, see GN 03930.110C. for FO notification procedures.

  • •

    In the PCs, the adjudicating technician will send the fee determination to the FO using MDW and the e4345 will also include information about any approved fee or any amounts being withheld for possible fee payment. The adjudicating technician will add a special message to the MBR.

b. Fee Authorized by a Court

  • •

    Verify the court order authorizing the fee is in the claim(s) file and Evidence Portal.

  • •

    In the PCs, the adjudicating technician will send the fee determination to the FO using MDW and the e4345 will also include information about any approved fee or any amounts being withheld for possible fee payment. The adjudicating technician will add a special message to the MBR.

GN 03930 TN 32 - Fee Authorization Under the Fee Petition Process - 12/09/2024