Keith Mack
The Social Security Administration (SSA) will pay an attorney representative out of a claimant's past-due benefits, subject to certain limitations. The SSA will pay the representative the smallest of the amounts in paragraphs (b)(1)(i) through (iii) of this section, less any assessments. The fee agreement must be submitted before the date of the first favourable determination or decision. The fee agreement must be signed by the claimant and the claimant's appointed representative(s) and must detail the fee arrangement between the parties. The SSA can make direct payments to attorneys for title II benefits and SSI benefits. The SSA can also make direct payments to non-attorney representatives if they are eligible to receive direct payment and the claim is for SSI, old age, survivors, or disability benefits. However, the SSA's regulations state that only individuals, not entities (e.g. firms, partnerships, legal corporations, or other organizations), may be appointed and act as representatives.
| Characteristics | Values |
|---|---|
| SSA payment to law firms | The SSA does not make direct payments to law firms or other entities, only to individuals who are attorneys or eligible non-attorneys |
| Fee agreement | A written statement detailing the fee arrangement between the claimant and their appointed representative(s) must be submitted before the date of the first favorable determination or decision |
| Fee amount | The fee agreement must not exceed the lesser of 25% of past-due benefits or a specified dollar amount ($9,200 as of 2025) |
| Fee payment | The SSA will pay the representative out of the claimant's past-due benefits |
| Fee approval | The SSA approves the fee petition only if the attorney fees requested are reasonable |
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What You'll Learn
- The SSA can pay attorneys directly from withheld past-due benefits
- The fee agreement must be submitted before the date of the first decision
- The fee agreement must be signed by the claimant and their appointed representative
- The fee agreement cannot exceed 25% of past-due benefits or a specified dollar amount
- The SSA will not pay a representative who is a non-attorney ineligible for direct payment
The SSA can pay attorneys directly from withheld past-due benefits
The Social Security Administration (SSA) can pay attorneys directly from withheld past-due benefits, but only under certain conditions. Firstly, a fee agreement must be submitted and signed by both the claimant and their appointed representative before the date of the first favourable decision. This agreement must detail the fee arrangement between the parties, and it must specify that the fee does not exceed 25% of the past-due benefits or a specified dollar amount, which is $9,200 as of 2025. If the claimant is legally incompetent or under the age of 18, a court-appointed representative or the person responsible for their care can sign the fee agreement on their behalf.
It's important to note that only individuals, not entities such as firms or partnerships, may be appointed as representatives before the SSA. Therefore, the fee agreement must be signed by an individual attorney, not just stamped with a representative's firm name. Additionally, the SSA can make direct payments to non-attorney representatives if they are determined to be eligible to receive such payments.
To receive direct fee payment from past-due benefits, the attorney or eligible non-attorney representative must file a request for approval of a fee or written notice of intent to file a request within 60 days of the date of the favourable determination. If no request is filed within this timeframe, the SSA will notify the representative and claimant that the past-due benefits will be paid in full to the claimant unless the representative files for approval of a fee within 20 days.
The SSA will only approve fee petitions if the attorney fees requested are reasonable, and they may certify the amount of the fee awarded by the court if the withheld past-due benefits amount is sufficient. If the amount is insufficient, the attorney will need to seek the balance from the claimant. It's worth noting that if the attorney receives court fees under both the Social Security Act and the Equal Access to Justice Act (EAJA) for the same work, they must refund the smaller fee to the claimant.
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The fee agreement must be submitted before the date of the first decision
A fee agreement is a contract between a service provider, such as an attorney, and a client. It outlines the services to be provided, the payment details, and other pertinent information. In the context of Social Security Administration (SSA) claims, a fee agreement is a written statement signed by the claimant and their appointed representative, detailing the fee arrangement for the services provided.
The SSA has specific requirements for fee agreements to be valid. One crucial requirement is that the fee agreement must be submitted before the date of the first favorable determination or decision. This deadline is essential, as it ensures that the fee agreement is in place before any decisions are made on the claim.
If the fee agreement is not submitted on time, the representative must file a fee petition or notice of intent to submit a fee petition to receive direct payment from past-due benefits. This petition must be filed within 60 days of the notification of a favorable determination or decision. If no request is filed within this timeframe, the SSA will notify the claimant and their representative, informing them that the past-due benefits will be paid directly to the claimant unless the representative takes specific actions.
The fee agreement must also adhere to other provisions set by the SSA. For instance, the fee under the agreement cannot exceed 25% of the past-due benefits or a specified dollar amount, such as $9,200. Additionally, the agreement must be signed by the claimant or their legal guardian, representative payee, and representative.
Complying with the deadline for submitting the fee agreement is crucial to ensuring that the representative's fees can be properly assessed and paid. By submitting the agreement before the first decision, the representative can outline their expected fees and ensure they receive direct payment from the SSA if the claim is successful.
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The fee agreement must be signed by the claimant and their appointed representative
The Social Security Administration (SSA) has strict requirements for fee agreements between claimants and their appointed representatives. The fee agreement must be a written statement, signed by both the claimant and their appointed representative, detailing the fee arrangement between the two parties. This agreement must be submitted before the date of the first favourable decision.
The SSA will only pay the representative out of the claimant's past-due benefits if there is a fee agreement in place and the SSA has made a favourable decision. The fee agreement must specify the fee to be paid to the representative, which cannot exceed 25% of the past-due benefits or a specified dollar amount, such as $9,200. If the claimant is legally incompetent or under 18, a court-appointed representative or the person responsible for the claimant's care can sign the fee agreement.
The SSA will not approve a fee agreement that is stamped only with a representative's firm's name. This is because the SSA's regulations state that only individuals, not entities (such as firms, partnerships, or legal corporations), may be appointed and act as representatives. However, the SSA can make direct payments to eligible non-attorney representatives if the claim is for SSI or old-age, survivors, or disability benefits. In such cases, the non-attorney representative must register with the SSA by completing Form SSA-1699 and submitting the necessary direct payment information.
It is important to note that if there is no fee agreement or the SSA disapproves of the agreement, the representative must file a fee petition or notice of intent to submit a fee petition to receive direct payment from past-due benefits. This petition or notice of intent must be filed within 60 days of the notification of a favourable determination.
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The fee agreement cannot exceed 25% of past-due benefits or a specified dollar amount
The Social Security Administration (SSA) has a set of rules regarding fee agreements between claimants and their appointed representatives. A fee agreement is a written statement, signed by both the claimant and their representative, detailing the fee arrangement between the two parties. This agreement must be submitted before the date of the first decision.
The specified dollar amount is established under section 206(a)(2)(A)(ii)(II) of the Social Security Act and can be increased by the Commissioner of Social Security. The fee cap amount is likely to change annually, with future increases being based on the annual Cost of Living Adjustments (COLA). The fee cap for 2024 is $9,200, effective from November 30, 2024, and is expected to compensate representatives while protecting claimants from excessive fees.
The SSA will pay the representative directly out of the past-due benefits. If there is no fee agreement or it is disapproved, the representative must file a fee petition or notice of intent within 60 days of the notification of a favorable determination. The representative must also disclose any payments made towards the fee from other sources, such as a trust or escrow account, which will be deducted from the direct payment.
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The SSA will not pay a representative who is a non-attorney ineligible for direct payment
The Social Security Administration (SSA) has strict rules regarding the payment of fees to representatives. The SSA will pay attorneys and non-attorneys directly from past-due benefits, but only if they are eligible for direct payment.
To be eligible for direct payment, non-attorneys must apply for and maintain accreditation with the SSA. They must possess a bachelor's degree or equivalent, pass a written examination, secure professional liability insurance, undergo a criminal background check, and complete continuing education courses. If a non-attorney representative does not meet these requirements, they are ineligible for direct payment. In such cases, the SSA assumes no responsibility for the payment of any fee they authorized, and the fee will not be deducted from the claimant's past-due benefits.
It is important to note that only individuals, not entities (e.g., firms, partnerships, legal corporations), may be appointed as representatives before the SSA. Additionally, the SSA will not make direct payments to a representative if they waive their right to direct payment.
The SSA also imposes a "user fee" to recover its costs for determining and certifying representative fees. This fee is typically deducted from the amount certified for payment to the representative or entity.
In certain situations, the SSA may disapprove a fee agreement or the representative may not have filed a request for approval of a fee. In these cases, the representative must file a fee petition or notice of intent to submit a fee petition within 60 days of the favorable determination to receive direct payment from past-due benefits.
The SSA's guidelines outline specific criteria for eligible non-attorney representatives, ensuring they maintain the necessary qualifications, insurance, and ethical standards to provide services to claimants.
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Frequently asked questions
The SSA can pay the attorney directly out of the claimant's past-due benefits. The fee agreement must be submitted before the date of the first favourable determination or decision. The fee agreement must be signed by the claimant and the claimant's appointed representative(s). The SSA does not make direct payment to a representative if the representative waives the right to direct payment.
The fee agreement is a written statement detailing the fee arrangement between the claimant and their appointed representative(s). The fee agreement must be submitted before the date of the first favourable determination or decision.
Social Security limits attorney fees to 25% of your back pay, up to $9,200—whichever is lower. The fee cap has been increased from the previous amount and is effective from 30 November 2024.
The full fee petition will include all the work done by the attorney on the claimant's disability claim, such as filing documents, communicating with Social Security, requesting medical records, and representing the claimant at a disability hearing. Out-of-pocket expenses are not included in the Social Security fee limit.
If you switch attorneys, the new attorney needs to file a fee petition with Social Security so that the fee can be split between the two attorneys.
