Last Update: 12/9/2024 (Transmittal I-1-108)
HA 01120.011 Fee Agreements — General Policy
Renumbered from HALLEX section I-1-2-11
A fee agreement is a written statement, signed by the claimant
and the representative, specifying the fee that the representative
expects to charge and collect and that the claimant expects to pay for
the representative's services before the Social Security Administration
(SSA). The individuals who sign the fee agreement are considered the
parties to the agreement. Although the fee agreement must be a written
statement and meet certain statutory requirements to be approved, there
is no prescribed language.
SSA provides a
standardized fee agreement Form SSA-1693. This
form solicits required information to comply with the statutory
requirements for fee agreements. The SSA-1693 may be used by any
representative, and multiple appointed representatives may sign
the same form. The electronic version of Form SSA-1693 (e1693)
is available on SSA's public website at http://www.ssa.gov/representation.
When issuing a favorable (fully or partially) decision, a decision
maker must approve a fee agreement if the statutory conditions under
section 206(a)(2)
of the Social Security Act are met and no exceptions apply. The
conditions and exceptions are set forth in Hearings, Appeals,
and Litigation Law (HALLEX) manual HA 01120.012. A decision maker will take no
action on a fee agreement if they are not issuing a favorable decision
on any claim.
If a decision maker approves a fee agreement in connection with a
favorable decision, but a later action vacates the favorable decision,
that action also vacates the approval of the fee agreement and any
authorization of fees under the fee agreement. If, after resolving the
issue that resulted in the vacated action, a decision maker again issues
a favorable decision on the case, they will approve or disapprove the
fee agreement based on the circumstances that exist as of the date of
the new decision (even if adjudication is limited through the date of
the prior decision).
A fee agreement:
•
May be submitted with the Form SSA-1696 (Claimant's
Appointment of a Representative), and must be signed by both the claimant
and representative(s);
•
Remains in effect through the entire administrative review
process and any administrative proceedings following a Federal court
remand, unless the fee agreement is amended or limited in application
(see next bullet), or a fee is later waived;
•
May contain a provision that limits its
application to services through a specific level of the
administrative review process (see HALLEX HA 01120.015 for information on “two-tiered
fee agreement”);
•
May contain language that would allow for an increase
in the maximum fee that SSA can authorize if the Commissioner increases
the statutory “fee cap” after the date of the agreement;
and
•
May be amended before the date of the favorable
decision.
For fee agreement evaluation policy, see HALLEX HA 01120.012.