When authorizing fees under the fee agreement process, the fee agreement signed by
the primary claimant is binding on any auxiliary beneficiaries, unless an auxiliary
beneficiary has appointed their own representative. GN 03920.030B. and GN 03920.035B. discuss past-due benefits of and withholding from an auxiliary beneficiary.
The primary claimant pays the authorized fee from their withheld past-due benefits
to the maximum amount possible. We prorate any difference between the total authorized
fee and the amount the primary claimant pays, between all auxiliary beneficiaries
who were not independently represented, independent of the household status (i.e.,
single or multiple family unit).
NOTE: If the approved fee agreement provides for the specified dollar amount of the fee
cap indicated in GN 03940.003B.3, and 25 percent of the primary claimant's past-due benefits equals or exceeds the
specified dollar amount of the fee cap, there is no withholding from auxiliary beneficiaries
for fee payment. Procedure