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:

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

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  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;

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

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  All auxiliaries do not live in the same household.

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.