Overview of Representatives' Fees

SSA's Fee Authorization Processes

A representative who wants to charge or collect a fee from a claimant or a third party, for services provided in any proceeding before the Social Security Administration (SSA) under the Social Security Act (the Act), must first obtain SSA's authorization. To do so, a representative must use one of two mutually exclusive fee authorization processes:  the fee agreement process or the fee petition process.

Fee Agreement Process  Before SSA decides the claim, the representative or the claimant may file a fee agreement. Generally, SSA will approve an agreement (under § 206(a)(2)(A) of the Act) if the other statutory conditions are met and no exceptions apply. If SSA approves the fee agreement and no one requests administrative review, the fee specified in the agreement is the maximum fee the representative may charge and collect.

Fee Petition Process  After the representative's services in the case have ended, he or she may petition for a fee. SSA reviews the fee petition and authorizes a "reasonable" fee (under §206(a)(1) of the Act) for the specific services provided.

• An initial, revised, or reconsidered determination or action by a field office or processing center; or
  
• A decision or action by an Administrative Law Judge or an Administrative Appeals Judge.

• An application for Social Security monthly benefits, supplemental security income (SSI) payments, or a lump-sum death payment;
  
• An application for hospital insurance benefits or supplementary medical insurance benefits;
  
• A request to establish or continue a period of disability;
  
• A request to modify the amount of benefits;
  
• A request to reinstate benefits;
  
• A request to waive recovery of an overpayment, or an appeal of an overpayment waiver denial determination; and
  
• A request to revise an earnings record.
  

When all of the following conditions are present, SSA need not authorize a fee:

• The claimant and any affected auxiliary beneficiary are free of direct or indirect liability to pay a fee or expenses, either in whole or in part, to a representative or to someone else.
• The entity that pays the representative’s fee and expenses incurred on behalf of the claimant(s) or beneficiary, is a business, firm, association, partnership, corporation, for-profit or not-for-profit organization, or a government agency
• A representative submits a written statement to SSA waiving the right to charge and collect a fee and expenses from the claimant and any auxiliary beneficiary.
  

When the Social Security Administration (SSA) or a Federal court authorizes a representative's fee based on an approved fee agreement or a fee petition, SSA will withhold up to 25 percent of the claimant's title II and/or title XVI past-due benefits for payment of all or part of the authorized fee if the following criteria are met:

• At least one of the claimant's representatives is an attorney or a non-attorney whom SSA has determined is eligible for direct payment of fees.
• The claimant is entitled to past-due benefits under title II and/or title XVI.
• The attorney or non-attorney who is otherwise eligible to receive direct payment has not waived his or her fee or waived the right to direct payment.
• An attorney or non-attorney whom the claimant appoints after December 31, 2006 to represent him or her before SSA, or an attorney for whom a Federal court approves a fee after December 31, 2006, has registered to receive direct payment by taking two steps:
• Submitting, one time, a completed online or paper Form SSA-1699, Registration of Individuals and Staff for Appointed Representative Services.
• Submitting, in connection with the specific claim(s), a completed Form SSA-1695, Identifying Information for Possible Direct Payment of Authorized Fees.

When SSA makes direct fee payment, the law requires SSA to charge an assessment to cover administrative costs. SSA deducts this service charge from the amount payable to the representative. The representative cannot charge or collect this expense from the claimant.

• For direct payments made to representatives on or after December 1 2008, the service charge is capped at a flat rate dollar amount of $83.
• For direct payments made to representatives on or after December 1 2007, the service charge is capped at a flat rate dollar amount of $79.
• For direct payments made to representatives on or after December 1 2006 but before December 1 2007, the service charge is capped at a flat rate dollar amount of $77.
  
• For direct payments made to representatives on or after September 1, 2004 but before December 1, 2006 the service charge is capped at a flat rate dollar amount of $75.
• Before September 1, 2004 the service charge is 6.3 percent of the representative fee payable from past-due benefits, not limited to a flat rate dollar amount.

When a claimant or representative disagrees with SSA's determination to approve or disapprove a fee agreement, he or she may request administrative review of that determination.

When a claimant, affected auxiliary beneficiary, or representative disagrees with the amount of the fee SSA authorized, he or she may protest that determination by requesting administrative review. Under the fee agreement process only, the SSA decision maker may also request administrative review of the fee amount authorized.

Under the fee petition process, the party requesting administrative review must do so within 30 days after the date of the notice of the fee authorization. Under the fee agreement process, the party requesting administrative review must do so within 15 days of receiving the notice of the determination approving or disapproving the fee agreement or authorizing the amount of the fee.