When a court issues a favorable decision to a claimant on a Title II claim, the amount
that SSA will certify for direct payment to an attorney who is eligible for direct
payment is the fee the court set, which by statute cannot exceed 25 percent of the
claimant's past-due benefits, less:
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any funds the claimant put into a trust or escrow account the attorney established,
if reported to SSA (see GN 03920.025), and
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the assessment imposed to cover administrative costs (see GN 03920.019).
SSA extended the Title II attorney fee withholding process to Title XVI for favorable
court decisions issued on or after February 28, 2005. SSA will pay an attorney eligible
for direct payment an amount equal to the lesser of:
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the fee set by the court (less any funds the claimant put into a trust or escrow account
the attorney established, if reported to SSA (see GN 03920.025));
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25% of the Title XVI past-due benefits as defined in GN 03920.031 - Representative’s Fee – Title XVI Past-Due Benefits; or
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the Title XVI past due benefits remaining after reduction for interim assistance reimbursement;
or
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in concurrent Titles II and XVI claims, the amount of the fee set by the court that
SSA did not pay to the representative from the Title II withheld past-due benefits.
From that amount, SSA deducts the assessment, if any, imposed to cover administrative
costs (see GN 03920.019). The worksheets in GN 03920.017D.2. and GN 03920.017D.4. may be adapted to perform these calculations.
NOTE 1: The assessment cap is applied to the combined authorized administrative and court
fee. For example, if SSA pays the fee authorized for services at the administrative
levels first and deducts the maximum assessment, when paying the court authorized
fee, SSA does not deduct an additional assessment. Refer to GN 03930.066D. for guidance on prorating the assessment when SSA makes fee payments to two or more
representatives.
The court fee is in addition to the fee, if any, SSA authorizes for proceedings at
the administrative level. However, SSA withholds a maximum of 25 percent of past-due
benefits for direct payment of fees, whether authorized by SSA, a court, or both.
SSA pays the representative(s) the fee authorized for administrative services and
the court set fee in the order the component responsible for paying the fees receives
the fee authorizations.
NOTE 2: In court cases, the law does not provide for direct payment to a non-attorney.
For policy of attorneys’ fees for representation in proceedings before a court, see
GN 03920.060.