The past-due benefits amount subject to withholding is $11,000 ($20,000 past-due benefits
– $9,000 WC). The claimant's 1992 overpayment has no effect on the past-due benefits
amount because it occurred in a prior period of entitlement. However, SSA must reduce
the $20,000 retroactive payment by $9,000, the WC offset amount, because SSA does
not include benefits that a claimant will not receive because of a deduction event.
SSA will withhold $2,750 ($11,000 X 25 percent of past-due benefits) for direct payment
of the representative's fee, and reduce the retroactive amount by the $3,000 overpayment.
Therefore, the past-due benefits payable amount is $5,250 ($11,000 - $5,750 ($3,000
OP + $2,750 withheld amount)).